information

For successful acquisition of real estate in Latvia important value has a choice of agency on real estate which will provide professional approach, purity and transparency of the transaction, taking into account interests of both parties. Company "VIP Real" has long-term experience in the market of real estate therefore will help and will facilitate to you process of purchase, rent or sale of object.

 

Terminology:

The land book - is the state uniform computerized land book which is the central database where information on all objects of property contains in Latvia.

The state uniform computerized land book contains legally recognized information which opens all history of a real estate object (owner at the moment, all previous owners, existence of burdenings and encumbrances, possession of shares).

The account of the transaction - is a service which reduces risks in transactions of purchase and sale.

The buyer, the seller and bank sign the tripartite contract in which stipulate terms of transaction, documents and terms of their representation, necessary for her realization. The sum of money transferred by the buyer is paid for goods or property to the seller only when both parties provide to bank all documents provided by the contract on the account of the transaction.

Any of partners in the transaction can't get access to funds until all documents are processed and provided to bank.

The bank checks the submitted documents and, having convinced of their compliance to terms of the contract, realizes the transaction - the seller receives money, and the buyer - originals of documents.

If during period of validity of the contract the transaction didn't take place, for example, all necessary documents weren't provided to bank, then the means deposited to the account of the transaction come back to the buyer.

The application on fixing of the property rights -  is the document request made and certified by the jury notary for the Land book which sign both parties of the transaction, about a re-registration of the property rights addressed to the buyer.

 

Algorithm of registration of the transaction of purchase and sale of real estate

  1. Selection and search of real estate for the client (or search of the buyer for real estate of the client).
  2. The analysis and verification of documents on real estate.
  3. Development of the scheme of the transaction.
  4. The conclusion of the contract of a deposit.
  5. Introduction of sum of earnest money (in case of the conclusion of the above-mentioned contract).
  6. Conclusion of the contract of purchase and sale.
  7. The conclusion of the contract on the account of the transaction and opening of the account of the transaction in the bank chosen by the parties (the contract on the account of the transaction can be signed to, after the conclusion of the contract of purchase and sale and along with it; use of the account of the transaction provides the mechanism of calculations, optimum for both parties).
  8. Obtaining permission of a thought (acquiring real estate which part the earth is, addressed to not the citizen of the Republic of Latvia or the citizen of other state, it is necessary to get permission of City Council; the application for inquiry of permission is considered within 20 working days).
  9. Receiving refusal of "the rights of the first hand" if that is necessary (acquiring real estate, it must be kept in mind that the third party (the state, self-government, the joint owner) can have the right of primary purchase to it).
  10. Payment of the buying price or its part (as a rule its introduction into the account of the transaction).
  11. Registration at the jury notary of the application on fixing of the property rights addressed to the buyer (the document of a certain form in which the parties of the transaction ask to register transition of the property rights in the Land book).
  12. Submission of all collected documents for registration in the Land book (registration takes up to 10 working days. At the same time the buyer pays office duty (21,34 Eur) and the state tax (2% of an amount of transaction)).
  13. After registration of the property rights addressed to the buyer, the bank on the basis of the relevant document transfers to the seller the amount of purchase or its part from the account of the transaction.
  14. Transfer of property to the new owner (signing of the delivery-acceptance certificate).

 

Algorithm of registration of the transaction of rent

  1. Selection and search of a real estate object on rent for the client (or search of the tenant on real estate of the client).
  2. Analysis and verification of documents on real estate.
  3. Discussion and coordination of provisions of the lease.
  4. The conclusion of the lease contract and calculation between the parties (introduction of the preliminary sum, or payment of all sum of rent).
  5. Transfer of property to the tenant (signing of the delivery-acceptance certificate).

 

Important nuances:

Legal status of object - To avoid problems during the transaction and in the future before acquiring real estate, before signing of contracts, it is important to study the legal status of property – its structure, the burdenings and opportunities of use fixed on it. Company "VIP  REAL" using a database of the uniform computerized Land book, in real time, provides the clients with all necessary information on the acquired object. If necessary our company can order the certified property assessment.

Mortgage and the mortgage right – If the property is put, the transaction of purchase and sale will require consent from the face in favor of which pledge or a mortgage is fixed, and the order of removal of pledge or a mortgage has to be provided in the scheme of the transaction.

Permission of orphan court – If the real estate is acquired addressed to the minor, it is necessary to get permission of orphan court. Process takes 1 month.

 

Foreigners can't get:

  • The earth in border strips, in protective strips of dunes of the Baltic Sea, the Gulf of Riga and in protective strips of other public reservoirs excepting cases when the earth is provided for building according to the general plan of self-government
  • Agricultural and forest earth
  • The earth in natural parks and in zones of natural reserves of other protected territories
  • The earth in places of mining of the state value

 

Expenses according to the transaction:

  • The state duty for registration of the property rights in the land book – 2% of an amount of transaction
  • An office tax for registration of the property rights in the land book – 21,34 Eur for one person.
  • Services of the notary – according to dachshunds of jury notaries. At the standard transaction – about 150 Eur.
  • Opening and service of the account of the transaction – according to the estimate of the chosen bank (from 300 Eur) (0.3-0.5% of an amount of transaction)
  • Remuneration for company services on real estate. Agree about the size and an order of payment of remuneration of the party in the contract on cooperation.