Procedure how to buy real estate in Latvia

on Thursday, 09 October 2014. Posted in Useful Information

Real estate in Latvia from INVEST RIGA

Procedure how to buy real estate in Latvia

Procedure of purchasing real estate in Latvia.

Not only inhabitants of Latvia can purchase a real estate in Latvia easy and quickly but also investors of real estate, which are foreigners. In Latvia procedures of purchasing real estate in Latvia are legally similar for inhabitants of this country and foreigners.

Easy way how to purchase a real estate in Latvia is to assign transaction formalities to authorized representative INVEST RIGA that is allowed by Latvian legislation that can make real estate purchase procedure operativeness and correctness easier for foreigner. If the purchaser of real estate assigns transaction to authorized person from INVEST RIGA that represents purchaser in all state institutions which are related to registration of property rights on behalf of investor then this opportunity offers customer not to participate in procedure's course but to receive affirmed documents which prove the property rights of the new owner. Investor can lay claim to residence permit in Latvia by investing in "Latvian real estate".

Procedure steps of purchasing real estate in Latvia:

The first steps include choosing the real estate in Latvia such as Riga, Jūrmala, Riga's area or other places in this country. The customer can arrive to become acquainted with estates available in the market that is information provided by INVEST RIGA.

how to buy real estate in Latvia

As a second step in purchasing real estate in Latvia here is reserving the chosen estate. The reserving of real estate prescribes signing the key money contract and seller of the property gets previously agreed reserving amount of money, which usually is 10% of the real estate value. After signing the key money contract estate is out of sale.

The next step is signing the sales contract when the concrete (purchasable) object is first of all checked by Latvian notary to assure that the real estate can be legally sold. Then, when notary has got acquainted and assured that the property has no hidden defects he/she prepares and affirms the sales contract that must be signed by both parties. Purchaser transfers the remaining amount to seller and then documents are signed in Land Register to register the property to its new owner. When making real estate transactions in Latvia usually there is created and opened account for concrete transaction in bank that is called transaction account. This account guarantees that the transaction will be implemented by both parties because the bank takes the position of the third party as a person of control. This control guarantees that the seller will receive the money and the purchaser will receive the property rights.

This is just the most typical variant how to buy a real estate in Latvia because there are also other variants.

The costs of purchasing real estate in Latvia:

  • Notary services - approximately 200 EUR;
  • Simplified transactions - 500 to 700 EUR;
  • Registry charges - 30 EUR,
  • State fee for registration of property rights is 2% from the price of the purchase;
  • Transaction account service costs are individual from 500 to 1500 EUR.

Loan for purchasing a real estate in Latvia

Every INVEST RIGA customer (foreigner) who purchases a real estate in Latvia can receive a mortgage credit in banks of Latvia. Customer can give property being purchased as a collateral to get the mortgage credit. The expiration date of reviewing the loan application and loan interest rate is evaluated individually. Average interest rate is 5–7 % for a year. When purchasing a real estate in Latvia foreigners can receive a loan up to 40 years.

Open an account in Latvian banks

Opening an account in Latvian bank is not obligatory but it is advisable to have transfers operatively and without disturbing controls. The account in Latvian banks is not obligatory to do the purchase of real estate in Latvia. In banks of Latvia it is very easy to manage your opened account through the Internet bank. Internet bank of every bank in Latvia is available also in Russian language.

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