[BUYING AND SELLING REAL ESTATE IN LATVIA]
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3) Other rights of first refusal Rights of first refusal can be established also by the agreement or will. The law also provides for other specific cases when third parties have the rights of first refusal or redemption rights to real estate, for example, if the real estate is alienated in the territory of a civil aviation aerodrome of the state significance (also the territory necessary for further development thereof) and the civil aviation aerodrome is owned by a capital company where the state has a decisive influence - the state has the rights of first refusal, but if the civil aviation aerodrome is owned by a capital company, where the local government has a decisive influence - the respective local government has the rights of first refusal, or rights of first refusal to the real estate in the territory of the port may be exercised by the local government, represented by the port authority, but the rights of first refusal to the real estate in the territory of the port of Riga shall be exercised by the port authority of Riga as a derived public person and in the territory of the port of Ventspils shall be exercised by the port authority of Ventspils as a derived public person. Up until 1 January 2023, when new Municipality law entered into force, local governments had rights of first refusal in case of alienation of the real estate, if it was necessary for performance of local government functions. The procedure necessary to gain the local government’s decision on its first refusal rights hindered the transaction. Now these rights are completely discarded, and in case of a
necessity a local government may at any time initiate a process in accordance with the Law on the Alienation of Immovable Property Necessary for Public Needs. B. Permitted use of the real estate (zoning) and environmental protection regulations Prior to the acquisition of real estate, the permitted use of the real estate (zoning) and possible restrictions for the usage, including construction, of the real property should be additionally reviewed in the local government spatial plan and Territory Usage and Build up Regulations. Prior to the acquisition of real estate, it should also be reviewed whether the territory of the real estate is not registered with the Register of Polluted and Potentially Polluted Areas. However, it should be noted that, even if the territory of the real estate has not been registered as polluted or potentially polluted, depending on the historical usage of the respective real estate there is a risk that historical pollution may appear.
IX. ANNUAL
COSTS
FOR
PROPERTY
OWNERSHIP A. Property Insurance
Property Insurance is not mandatory, but very common. When property is purchased through loans by banks or other financial institutions, usually the lender requires the buyer real property insurance to secure a mortgage. B. Real Estate Tax Real estate tax is levied on a property's assessed value. Real estate tax is payable
ILN Real Estate Group – Buying and Selling Real Estate Series
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