Buying a Property

The buying process is simpler than in the UK but with pitfalls for the unwary.

Basically it goes as follows:

1. Find the apartment
 ...there are lots of bargains to be had, but you would need to have the finance in place.

2. Make an offer - with the right negotiation a 10/20% discount may be possible

prove your ID and offer a photocopy of your passport. There is no 'subject to survey' or even 'subject to contract' in Latvia, unless your solicitor draws up a special document to this effect. Unusual and unnecessary. If you want a survey it will take around three to seven days.

3. Visit a jurist (notary/solicitor)

...usually chosen by the seller and as fast as can be arranged, sometimes within hours! Sign a legally binding document, Rokas Naudas Ligums (Agreement between Seller & Buyer).

This states you will buy within a certain timescale, usually 30 days or less. That the seller is the true owner proved by an up to date copy from the Zemes Gramata (Land Book) there are no outstanding loans or bills for the property and you have paid a security deposit (whatever is negotiated, at least 1,000 Euros) which is forfeited if you back out for any reason. The seller will sometimes want to include a clause that will 'fine' you the buyer for being late with the balance of the money. They can often be persuaded to omit this. Usually 0.5% of the price per day!

If the seller backs out they should pay you double your deposit (it happened once to us and we eventually got 130% of the deposit returned after days of 'discussion'). This document is witnessed signed, stamped and tied with string by the jurist at a cost of around 80 to 120 Lats (paid by the buyer). Plus around 50 Lats for an official english translation if you feel it is necessary. (1 Lat is approximately 0.79 GBP)

All of the above can be done by someone acting on your behalf - it is not necessary for you to even be in the country.

4. You then need the balance of the money

It is possible to have the apartment valued. But unfortunately it is virtually impossible for a foreigner to raise finance in Latvia. The best stratergy for your first property is money raised in the UK from remortgaging or some other means. Then raise money on the first apartment to buy the second and so on. After you own two properties, you are considered in a slightly different way by the banks - no longer just a property owner, but a speculator! Something the government hates - totally wrongly, but you can limit the impact - talk to us!

5.  All parties then visit the jurist again

... where the Pirkuma Ligums (Purchase Contract) is signed, witnessed and the balance of the money handed over, often asked for in cash or proof of a bank transfer into the buyers account at the minimum. Often a visit to the bank by all parties will be required, while the Jurist holds all documents for signing on return.

It is also important at this stage to ensure all utility bills are paid up to date. The jurist will charge between 100 and 180 Lats plus another 40 -50 Lats for an english translation.

6. You then need to personally visit the Rigas Pilsetas Zemesgramatu Nodalu (Land Registry Office). This can be done by proxy.

... to register your ownership of the property and pay the government tax which is 2% of the 'cadestral' value or the price paid whichever is lower, (for your first and second and a third apartment is 4%). It is usually possible to come to an 'arrangement' to reduce the official price paid and pay less tax! It is also wise to read the gas, electricity and water meters at this stage. Bills for these and the community charge need to be paid monthly. You must then return in 7-14 days to collect your Zemes Gramatu copy.

It is possible to sign over a right of attorney to another party to sign on your behalf, if that is your wish.

It is then necessary to visit gas, electricity, and the 'local authority' offices (possibly telephone, TV and internet) to register as the new owner. This can take a whole day or even two for yourself or your apponted agent!