ILN: BUYING AND SELLING REAL ESTATE - AN INTERNATIONAL GUIDE

[BUYING AND SELLING REAL ESTATE IN LATVIA]

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of the identity – passport or ID card for private individuals and also a representative of the legal entity. If the contractual party is a legal entity not registered in Latvia an excerpt from the company register certifying registration of the company and the representation rights of the representative should be provided. Depending on the registration country of the legal entity, the excerpt from the company register should be certified by a notary public or by an authority of the company register of the respective country (for the EU or the EEA countries, or the Swiss Confederation or a Member State of the Organization for Economic Co-operation and Development), or the excerpt should be legalized in accordance with the international regulatory enactments. The excerpt from the company register should also be translated in Latvian and translation should be certified by a notary public. A registration request for the re-registration of the title with the Land Registry should be submitted with the respective district (city) court in the territory of operation of which real estate is located. The following documents should be enclosed with the registration request: - an agreement on alienation of the real estate; - a refusal to exercise the rights of first refusal (except the refusal of the joint owner or owner of divided property) ( Please see Section IX. (A) ); - a consent from third parties, if such is required in the particular situation, for example, a consent from the bank in case of a mortgage, or a consent from the spouse of the seller, if the real estate is the co-property of spouses; - permission from the local government to acquire the land in Latvia, if such is

required by the law ( please see Section V. (D) ); - documents certifying representation rights of the parties; - receipts for the payment of the state and stamp duties. VII. CLOSING COSTS/ ADJUSTMENTS Notary fees are determined by secondary legislation, i.e., the Regulations of the Cabinet of Ministers. For the re-registration of the title with the Land Registry, a state duty and a stamp duty should be paid prior to the submission of the registration request with the respective Land Registry Office. The amount of the Land Registry state duty depends on the person in whose favor the property rights to the real estate are secured - the rate applicable to the state duty depends on the cadastral value of the real estate or the transaction amount, whichever is higher. The state duty for the consolidation of property rights in the Land Registry for each real estate is set at the following amount: - 1.5% of the value of the real estate (euro), if the property rights are acquired by a private individuals on the basis of a contract or a court decision to approve the statement of auction, or on the basis of a court decision on registering ownership rights to the real estate to a bidder, co-owner, or creditor; - 2% of the value of the real estate (euro), if the property rights are acquired by a legal entities on the basis of a contract or a court decision to approve the statement of auction, or on the basis of a court decision on registering ownership rights to the real estate to a bidder, co-owner, or creditor;

ILN Real Estate Group – Buying and Selling Real Estate Series

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