SELLING PROPERTY IN LATVIA
The process of selling Latvian real estate is rather straightforward, but at certain points requires paying a significant amount of attention to specific details that also require knowledge in fields other than property management. This is why it is advisable to hire a real estate guidance agency, so that it can find the best local specialists for these particular tasks.
In general, selling a Latvian property involves the following steps:
document preparation
determining the price
preparing a presentation
searching for a buyer
negotiating
transferring ownership rights
Document preparation
Document preparation is one of the most important stages of real estate selling process, as it directly affects almost all the other stages. It determines the time it takes to complete the procedures, the price that can be deemed reasonable, and, in certain cases, the actual possibility of selling a property at all. While the process is unique to each property and each buyer, and thus may require all kinds of documents, here is the list of those that are usually needed in every case:
a Land Book excerpt
A Land Book excerpt contains information on the ownership and legal status of a property, including thing such as easements and encumbrances. The data basically act as a proof to the fact that the property selling deal is legal and honest. This is why it is one of the most important documents to be prepared, because it can serve to answer most of a buyer’s concerns.
Notarized approval of the creditor
If the property you wish to sell is a collateral for a loan (i.e. an object of a mortgage loan), a notarized approval of the creditor must be presented, otherwise the deal is not legal. A mortgage agreement between a loan taker and a creditor includes the description of the specific real estate that is being mortgaged, hence the need for the permission - without it, the agreement would be changed by one party without the consent of the other party, which would constitute a violation of the law.
Notarized approval of your spouse
If you are married, a notarized approval of your spouse is required, because it is assumed that the real estate in question may be his/her main place of residence. Additionally, if it has been acquired after the marriage, it is classified as ‘mutually-owned property’, meaning both spouses have equal rights to it, and thus any decision about selling that property must be approved by both of them.
Technical and landscape documents
The State Land Services provides a variety of technical documentation about any property, including building and land plans. Almost every buyer is interested in the building/apartment plan, especially if it is residential property you are selling. Naturally, for industrial and commercial real estate the surrounding land plan is almost essential, as their infrastructure often strongly influences the area in the vicinity.
A tax status document
The government services portal latvija.gov.lv, as well as municipal councils, can provide documents about the tax status of a property. The documents indicate, whether all the relevant real estate taxes have been paid, and the property can only be sold if there are no tax debts. Otherwise, the deal is not considered legal.
Documents on the cadastral value
The cadastral value of a property determines the size of a number of taxes and fees, which is important to any property owner. This information can also be interesting to foreigners who wish to acquire Latvian property, because the cadastral value can help them assess its value in relation to the value of properties in other locations. The official cadastral value website kadastrs.lv provides this information.
https://propertyguide.lv/en/real-estate/selling/
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