Auction of real estates in Latvia

on Thursday, 09 October 2014. Posted in Useful Information

Real estate auctions in Latvia with INVEST RIGA

Auction of real estates in Latvia

If you want to purchase a real estate cheaper, you can do it in auction. Usually in auctions price is below the market value and therefore we offer to use it by the help of INVEST RIGA specialists. INVEST RIGA offers to authorize the lawyer who will act on the basis of warrant doing customer's task by finding and purchasing a real estate in Latvia from auctions.

Important to know:

Auctions real estate Latvia Riga

Auction provides an opportunity to purchase a real estate in Latvia below the market price that allows to save assets or to sell the real estate after auction by receiving a profit from selling it with more expensive price. Real estate prices in auction is for 20% and 30% lower than the value of estate. There are auctions where estate value is evaluated even lower and its cause can be as follows:

  1. The sellers of estates want to sell them sooner because it is very expensive to maintain them. Mostly creditors - banks, do it.
  2. Current occupiers are making obstacles to look around, evaluate and announce the auction therefore estate evaluator cannot get objective information while evaluating it. In these situations evaluator evaluates estate as a estate in bad condition that decreases the price shown in evaluation. In auctions the end prices usually is lower than the initial price but it is lower than the market price and is attracting.

What is auction of real estate and how does it works?

Auction works for benefit of one person who usually is insolvent debtor or other person who has lost the property rights. It is a process prescribed by law. Property is sold for a participant who has offered the highest price. It happens as follows:

  1. Announcement is published at the newspaper Latvijas vēstnesis where the standard price, place and provisions of the auction are shown;
  2. First, 10% from auction's initial price must be transferred to the account of the office of the court to apply for the auction;
  3. Participants of auction who have paid the 10% of initial payment register themselves at the office of the court at particular time and place.
  4. The office of the court leads the auction for its participants where he/she appoint the step of auction at his/her own discretion;
  5. The winner of the auction is a person who has given the highest bid for the object of the auction;
  6. After the auction an act is created where the process of auction, winner and price is fixed;
  7. Price that is residual from the end price subtracted initial price and small administrative expenses must be paid in the account of the office of the court. Usually it happens one month after auction.
After the auction winner gets the rights to purchase the object and property rights affirmation and registration.

Who can participate in real estate auctions in Latvia?

Legal and physical entities which have no debts: taxes, duties etc. can participate in the auction.

Risks of purchasing a real estate from auction

Mostly risks exist because there is no opportunity for evaluator to get inside the object (house in Riga Jurmala or apartment in Riga Jurmala) and evaluate its condition precisely and that creates a possibility to buy a property in bad condition. There are cases quite often when the previous owners take everything form the property including sockets. Also, a risk can be created that previous tenants can argue the auction and its results that leads to long proceedings.

Purchasing a real estate in Latvia through auction by the help of INVEST RIGA

We have an experience in participating in different auctions and managing their results till the registration of property rights on the name of the new owner. We offer to find and analys the market value of concrete estate so it could be known how much is it worth to give for it in the auction. INVEST RIGA works on basis of contract and warrant that will make you free of all bureaucracy deals. We can find the objects you are interested in, represent your interests in the auction and register auctions.

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