As we reported earlier, starting from May 1st, 2021, a new housing rental law came into effect in Latvia.
This law provides a convenient and simple procedure for registering rental contracts.
For your information. The Land Register is a unified electronic database of Latvian real estate. In the Land Register, you can verify information about a property - asset composition, ownership rights, and encumbrances. Rental rights are registered very rarely, as this requires notarization, which is an expensive and complex procedure.
As a result, you can purchase a property, especially at auctions, only to discover that there is an existing rental agreement and someone has the right to live there.
The new law partially solves this problem. If the tenant and landlord use electronic signatures, the rental agreement can be signed electronically.
Additionally, you must sign a document called a "petition" (available on the Land Register website).
Next, the rental agreement and petition are sent by email, and the Land Register registers the rental right free of charge.
After registration, the fact of rental becomes publicly available. For the landlord, this provides property tax benefits (in some cases). For the tenant, this guarantees that if the property is sold, the rental agreement remains in force.
Furthermore, the landlord can recover rental arrears through a simplified procedure and demand property vacating (when the contract is registered in the Land Register).
The removal of the rental notation is also governed by the new law. Removal occurs after the rental period ends (in some cases, automatically), or early termination (for example, if the landlord unilaterally terminated the contract).
We recommend all our clients register rental agreements in the Land Register, and will soon actively begin re-execution and registration of current rental agreements.
If you have any questions about the new rental law, please contact us - we will be happy to help!
Link to the Land Register website
https://www.zemesgramata.lv/
We look forward to your letter or call!
Phone number: +371 29774775 (Viber, WhatsApp)
Email: info@kominvest.com