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Recommendations for apartment and house buyers

Choosing real estate and housing is an extremely responsible decision, so before purchasing it is important to make sure that the property you are viewing will not cause problems in the future.

One of the main risk factors is to make sure that no uncoordinated reconstruction has been carried out previously, which will complicate obtaining financing from the bank and complicate the processes if you want to reconstruct or sell the property yourself.

Recommendations for <span>apartment and house</span> buyers

Check out our helpful checklist of things to consider when buying a property.

Buying a new home should be a pleasant and inspiring experience, which is why it is important to prepare well in advance to avoid any unpleasant surprises in the future.

Technical Aspects
Legal risks
Deal risks
Cost risks

Electricity

  • Check sockets and switches with the help of certified specialists
  • Find out the number of phases, connection capacity (A) and voltage (kV)
  • Is a meter installed and available? Is it separate and the contract will only apply to the property being purchased?
  • Check the connection on e-st.lv under the property information
Check the connection
Electricity
Water

Water

  • Check water connection and pressure
  • Check hot water connection (including boiler costs)
  • Are verified meters installed?

Gas

  • Check connection with Latvijas Gāze
  • Max load (m3/h)
  • Check the gas boiler condition – has it been serviced?
  • Are verified meters installed?
Check the connection
Gas
Heating

Heating

  • Check the total heat bill for the house
  • Consult the housing manager and neighbors about the heat in the property
  • Check the condition of radiators and heating pipes

Plumbing

  • Check that the drain pipes are installed with the appropriate slope and range (at least 40mm if the pipe is not longer than 1m or 50mm if it is not longer than 3m)
  • Check the toilet pipes (at least 100 mm in diameter?)
  • Check the water drainage in the plumbing units
  • Check the number of bends in the section from the plumbing to the central sewer pipe
Plumbing

Personal documents

  • Check your passport or ID card
  • Check the validity of the seller’s power of attorney with the notary who issued it, or log in to DigiNotārs
Power of attorney verification
Register of invalid documents

Ownership and Encumbrances

  • View the current electronic Land Register
  • Find out the owner
  • If there is no entry in the Land Register that the property is the owner’s separate property, ask the owner about the spouse
  • Check whether the property has any encumbrances (e.g. mortgages, prohibitions, real encumbrances)
  • Obtain the mortgagee’s (most often the bank) consent to the sale
Up to date Land Registry
Ownership and Encumbrances
Property composition

Property composition

  • Find out on the State Land Service data publication portal (spatial data or maps) which land plots are located under the structure, part of which or on which the apartment is being sold.
  • Find out whether the land or part of it is being sold together with the structure, part of it or the apartment on it, proportional to the part of the structure or the apartment property being sold.
  • If the part of the structure or apartment is being sold as deemed shares, consult a specialist (e.g., notary, lawyer, real estate appraiser, real estate broker*) about the risks of joint ownership, familiarize yourself with the terms of the agreement on the procedure for the use of joint ownership, analyze whether the number of deemed shares is proportional (corresponds) to the area of ​​the part in separate use, and find out whether, when selling the deemed shares, the other co-owners will be offered to exercise the right of first refusal.
Kadastrs.lv

Inventory file

  • Check whether the current cadastral survey (inventory) file of the structure or premises matches the actual state (the mark for illegal/uncoordinated reconstruction was made only in cases made before mid-2012; if the cadastral survey file does not match the actual state, analyze whether and how the illegal reconstruction will be legalized in fact and legally, consult with a construction specialist** and the relevant construction authority).
  • Calculate the costs for preparing a new cadastral (inventory) file.
Register of construction specialists
Inventory file

Seller - legal entity

  • Check the tax (fee) debts administered on the State Revenue Service website (Tax Debtors).
  • Check the insolvency proceedings in the Insolvency Register – initiated and terminated.
  • Check the registration data on the UR information portal, information on persons who have the right to represent the legal entity, and the scope of their representation, whether the person is entitled to represent the legal entity together with someone or separately.
State Revenue Service
Business register

Purchase price

  • Is the purchase price for the property paid to the seller after the registration of ownership? Are non-cash payments provided for*?
  • Will the full purchase price of the property be indicated in the purchase agreement?

According to the first six parts of Article 30 of“On Taxes and Duties” Law, real estate alienation deals are not allowed to be carried out in cash.

Escrow account

  • Are the terms of payment of the purchase price acceptable and secure?
  • Is there an agreement with the bank about creating an escrow account*?

In every deal, it is necessary to create an escrow account, through which the payment for the real estate will be made.

Taking possession of the property

Taking possession of the property

  • When, according to the terms of the purchase agreement, does taking possession of the property take place – the actual transfer of the property and its keys to the buyer?
  • Does the purchase agreement provide for the signing of an acceptance-transfer act or other document recording the readings of commercial metering devices?
Seller's Liability

Seller's Liability

Include the seller’s representations and liability in the purchase agreement regarding: first, the condition of the property and its encumbrances; second, that the property is not rented and will be transferred to the buyer vacant; third, the seller’s obligation to cancel all declared addresses of private individuals and legal entities in the property, while providing that, if the seller fails to fulfill this obligation, after the buyer’s property rights are confirmed, the buyer has the right to cancel all declared addresses of private individuals and legal entities in the property.

Terms of termination of the purchase contract

Under what circumstances can the seller or buyer unilaterally withdraw from the concluded contract? Are there any cases when the purchase contract is terminated automatically? Is there a procedure for refunding the purchase price if the purchase contract is terminated?

Reputation of the deal party

Check reviews on the Internet (e.g. Google search, Facebook). Often, if a seller is engaging in dishonest behavior, someone has already reported and posted their experience on both sudzibas.lv and social media portals.

Repair costs

Repair costs

Conduct a price survey with at least 3 crews and include additional unforeseen expenses of at least ~20%

Maintenance expenses

  • Find out the cadastral value of the property on the State Land Service data publication portal and calculate the possible real estate tax.
  • Before signing the purchase contract, request invoices from the seller for the last few months of services related to the use of the property (utilities, electricity, gas) to avoid having a property with debts and to predict the costs of maintaining the property.
Find out the cadastral value
Maintenance expenses
Purchase transaction processing costs

Purchase transaction processing costs

  • Consider bank account servicing fees and notary fees
  • Find out the amount of state and registry fees for recording the purchase transaction in the land register
State and registry fees
Thank you!
Jūsu pieteikums ir nosutits. Mūsu komanda izskatīs jūsu pieprasījumu un sazināsies ar jums.
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    Jūsu pieteikums ir nosutits. Mūsu komanda izskatīs jūsu pieprasījumu un sazināsies ar jums.
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