ILN: Buying and Selling Real Estate - An International Guide

[BUYING AND SELLING REAL ESTATE IN LATVIA]

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itself, either in its entirety or with respect to a part of it, the consent of all the joint owners shall be obtained. The joint owners can agree on divided use of the joint property proportionally to the amount of the undivided shares by signing a respective agreement. If one of the co-owners causes harm to other co-owners, maliciously using his rights or not fulfilling his duties as a good and caring owner, the majority of the co-owners may demand the alienation of the share of such a co- owner. The share of a co-owner is subject to alienation to other co- owners, transferring it to one or several co-owners with the obligation to reimburse the cost of the share in money, or the share is alienated by selling at a closed auction among the other co-owners. If none of the co- owners is willing to acquire the alienated share or the court has reasonable doubts about the expediency of such a method of alienation, the court decides to sell this share at public auction. C. Divided estate The general principle provided by Latvian law is that buildings and structures located on the land plot are part of the land plot and therefore owned by the landowner, and only in exceptional cases, buildings and structures as separate building property could be owned by another person, who is not the owner of the land plot - the so-called divided estate. In case of the divided estate, namely, if the building (structure) is located on the land plot, which does not belong to the owner of the building (structure), but is

(external enclosing structures, internal load bearing constructions and intermediate coverings of the residential house, premises for common use, engineering communication systems, devices servicing the residential building and other indivisible elements functionally associated with the exploitation of the residential building, as well as the auxiliary buildings and structures belonging to the residential building). The joint property also includes the land plot, on which the respective residential building is located, unless it is owned by another person ( please see Section C. Divided estate , in this paragraph).

B. Undivided share of the real estate It is possible to acquire not the entire real estate, but an undivided share of the real estate, i.e., to acquire the undivided share of the joint property ( Note: do not mix up with the joint property included in the composition of the residential estate). The joint property is the undivided real estate owned by several persons - joint owners of undivided shares so that only the substance of the rights is divided. A joint owner owns the undivided share of the joint property; therefore, the joint owner is entitled to deal with the undivided share, including alienating or pledging the respective undivided share. However, to deal with the joint property

ILN Real Estate Group – Buying and Selling Real Estate Series

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