Purchasing real estate in Latvia is a simple and secure process that is mandatory supervised by a sworn notary, as well as the state institution "Land Register", which is responsible for registering property ownership rights.
The sworn notary is chosen by the transaction participants; it can be any notary trusted by both the seller and the buyer. The notary's role is to verify the transaction documents and prepare a special document necessary to establish the buyer's property ownership rights.
Despite the dual control by the notary and the state, each transaction raises many questions. For example - how to check property encumbrances? How to verify that the property meets the in Latvia? How to obtain information that the seller has no outstanding utility payments? How to ensure that the mortgage or other encumbrances will be cleared? How to properly draw up all contracts? How to account for all risks?
To answer all these questions, you need the help of professionals who understand legal matters and are well-versed in the real estate market. We are pleased to inform you - such professionals work at KOM-INVEST!
Our company's task is not just to offer and sell you an apartment or house. Our task is to find legally clean real estate, help you understand legal issues, properly execute the transaction, and provide legal support throughout the deal.
1) What does legal transaction support include?
Legal transaction support includes verification of the property for encumbrances; verification of compliance with residence permit requirements in Latvia; drafting and coordinating the transaction mechanism; verification, preparation and drafting of all necessary documents/contracts; transaction monitoring; submission and receipt of documents from government and banking institutions.
Additionally, you will receive regular reports from the KOM-INVEST lawyer about the actions taken. If you have questions, you can ask them and receive a prompt response.
2) Can the transaction be executed by power of attorney to avoid spending time traveling to Latvia to sign documents?
For your convenience, KOM-INVEST is ready to represent your interests by power of attorney. Thus, after selecting the property and executing a power of attorney, you can return to your country of residence to continue with your affairs.
Each stage of the transaction will then be coordinated with you remotely (for example, by email). After receiving your confirmation, the necessary contracts and documents will be signed. Documents can also be submitted for registration of ownership rights by power of attorney.
3) How do I retrieve documents after the transaction is completed?
After completion of the transaction and registration of ownership rights, you can come and pick up the documents at the KOM-INVEST office. Documents can also be sent to you by courier mail to any convenient location.
After completion of the transaction, the KOM-INVEST lawyer will also help you obtain a residence permit in Latvia.
4) Are there restrictions for foreigners on purchasing real estate in Latvia?
Under Latvian law, foreigners do not have the right to acquire the following types of real estate:
- Land in border zones.
- Land on the coast of the Gulf of Riga and in the dune zone of the Baltic Sea.
- Land in the protection zone of public water bodies and rivers, except in cases where construction is permitted in these locations in accordance with the urban development plan.
- Agricultural and forestry land.
5) How does the transaction mechanism look step by step?
Below you will find a table in which KOM-INVEST explains step by step a standard apartment purchase and sale transaction.
Please note that there may be nuances that differ from the scheme outlined below. For example, you can sign all documents yourself without executing a power of attorney. In such cases, the transaction will be planned so that the main documents are signed in one day.
In any case, after selecting a property, you will be offered and the most suitable and convenient transaction scheme for you will be agreed upon.
| STAGE NUMBER | ACTION DESCRIPTION | COMMENTS (WHERE NECESSARY) |
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1
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You prepare funds in your bank account. | A bank account is necessary in order to transfer the purchase amount and pay fees, to maintain living funds in this account (which is necessary for obtaining a residence permit), and to pay utilities after registration of ownership rights. |
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2
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You execute a power of attorney in favor of KOM-INVEST | A power of attorney is necessary so that you can return to your country of residence or country of work, and the transaction is executed remotely. |
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3
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The KOM-INVEST lawyer drafts, coordinates with you and the property seller a purchase agreement. After coordination and receiving your confirmation, the lawyer acting by power of attorney (as the buyer's representative) and the property seller sign the purchase agreement. |
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4
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The KOM-INVEST lawyer submits a copy of the purchase agreement to the local government to obtain permission to purchase land shares that are part of the apartment. |
Typically, the apartment also includes land shares under the building. Under Latvian law, a foreign buyer must obtain the local government's consent to purchase land shares.
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5
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The KOM-INVEST lawyer helps open a so-called "transaction account" at the bank and signs by power of attorney the "transaction account agreement". |
What is a transaction account? This is the most convenient and most reliable way to pay the purchase amount.
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6
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You transfer the purchase amount to the transaction account. | |
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7
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The KOM-INVEST lawyer organizes a meeting at the notary's office, where the lawyer acting by power of attorney (as the buyer's representative) and the apartment seller sign the "purchase agreement" and "application to the Land Register". |
What is an application to the Land Register? This is a special document prepared by the notary after the notary has verified the legal status of the property and the transaction participants.
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8
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You pay state fees for registering property rights. |
The fee amount is 1.5% of the purchase price + 22 euros. A KOM-INVEST company lawyer calculates the fee amount and provides you with all payment details. The transfer is made from your personal account in a Latvian bank (see stage 1) |
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9
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A KOM-INVEST company lawyer submits documents to the land register to register your property rights. |
Registration is completed within 10 calendar days.
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10
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A KOM-INVEST company lawyer submits the «Land Register Certificate» (confirming your property rights) to the bank where the «Transaction Account» was opened.
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11
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After the purchase amount is transferred from the transaction account to the seller's account, the seller hands over the apartment to you based on the acceptance and transfer act. | Clients typically begin paying utilities after signing the acceptance and transfer act. |
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12
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Final details - a KOM-INVEST company lawyer registers you as a property tax payer, helps conclude utility service agreements. |
Have questions? We await your email or call!
Phone number: +371 29774775, (Viber, WhatsApp)
Email: info@kominvest.com