The Saeima¹ has adopted and
the President has proclaimed the following law:

On Privatisation of State and Local Government Residential Houses

Chapter I
General Provisions

Section 1. Terms Used in the Law

The following terms are used in the Law:

1) apartment house - a residential house where, pursuant to the cadastral survey file, there is more than one apartment, artist's workshop, or non-residential premises and auxiliary buildings and structures functionally belonging to the house;

2) apartment - premises or a complex of premises intended for living and enclosed from the remainder of the apartment house which is marked as an apartment in the cadastral survey file and to which belongs its walls, internal separating walls, ceilings, floors, their finishes, windows, doors, pipes, flues, parts of leads and other functionally indivisible parts of elements associated with the use of the house, all improvements located within the premises or within the borders of the complex of premises, and also auxiliary rooms and auxiliary buildings existing outside the apartment and functionally connected thereto (basement, toilet, shed, artist's workshop);

3) family members of a tenant - persons lodged in the residential space rented by a tenant in accordance with the procedures specified in Sections 9 and 10 of the law On Residential Tenancy;

4) communal apartment - an apartment the residential spaces of which are used on the basis of individually concluded residential tenancy agreements and the auxiliary rooms of which are transferred for collective use;

5) part of a house in joint property - a part of an apartment house comprising external walls, the partition walls of apartments, non-residential premises or artist's workshops, roof, attic, staircases, basements, and also windows, doors, communications, facilities and other functionally indivisible elements associated with the use of the house which do not belong to an apartment, artist's workshop, or non-residential premises;

6) undivided share of the joint property - a part which is in proportion with the area of an apartment, non-residential premises or artist's workshop in relation to the total area of all apartments, non-residential premises and artist's workshops in the house;

7) [7 April 2004];

8) artist's workshop - non-residential premises or a complex of premises in an apartment house which is marked as an artist's workshop in the cadastral survey file and which is not functionally associated with any of the apartments in the house and to which belongs its walls, internal separating walls, ceilings, floors, their finishes, windows and doors, pipes, flues, parts of leads and other functionally indivisible parts of elements associated with the use of the house, all improvements located within the premises or within the borders of the complex of premises, and also auxiliary rooms and auxiliary buildings existing outside the artist's workshop and functionally connected thereto (basement, toilet, shed);

9) non-residential premises - premises or a complex of premises in an apartment house which is marked as non-residential premises in the cadastral survey file and which is not functionally associated with any of apartments or artist's workshops in the house and to which belongs its walls, internal separating walls, ceilings, floors, their finishes, windows and doors, pipes, flues, parts of leads and other functionally indivisible parts of elements associated with the use of the house, all improvements located within the premises or within the borders of the complex of premises, and also auxiliary rooms and auxiliary buildings existing outside the non-residential premises and functionally connected thereto (basement, toilet, shed);

10) non-citizen - a person who, in accordance with the law On the Status of those Former U.S.S.R. Citizens who do not have the Citizenship of Latvia or that of any Other State, has the right to a non-citizen passport issued by the Republic of Latvia;

11) privatisation - a set of activities as a result of which the apartments, non-residential premises, artist's workshops in State or local government residential houses, single dwellings or apartment houses are acquired into ownership by natural persons and legal persons;

12) technical execution of privatisation - a set of legal and organisational and technical activities to be executed so that executive body of privatisation could take a decision regarding privatisation;

13) [7 April 2004];

14) single dwelling - a residential house where there is one apartment pursuant to the cadastral survey file and auxiliary buildings functionally connected thereto;

15) transfer of an apartment, artist's workshop, or non-residential premises into ownership until privatisation of the residential house - a set of activities to be performed in order to transfer an apartment, artist's workshop, or non-residential premises in State or local government residential houses into the ownership of persons indicated in this Law until privatisation of the residential house;

16) preparation of a residential house for privatisation - a set of legal and organisational and technical activities to be performed in order to specify the land parcel that is functionally necessary for a residential house and to register the house or the house and land in the Land Register until the commencement of privatisation of the residential house;

17) social residential house - a residential house specified by a decision of a local government and owned by a local government the maintenance and management of which is partly or completely performed using the funds of the local government budget and in which apartments are rented in accordance with the procedures specified in the Law;

18) State residential house - a residential house owned by the State which has been transferred into possession of a State institution or capital company;

19) artist - a person who has acquired secondary specialised or higher education at the educational institutions specified by the Ministry of Culture and who is a member of a creative professional organisation registered at the Ministry of Culture, or also a person who contributes to culture with his or her creative work, and it is confirmed by the creative professional organisation registered at the Ministry of Culture;

20) land parcel that is functionally necessary for a residential house - the land on which a residential house has been built, the elements of infrastructure, utilities, and communications necessary for the maintenance, management, and functioning thereof which have been indicated in the detailed plan of such land parcel;

21) proposal of privatisation - a submission of a person where a wish to privatise an apartment, artist's workshop or single dwelling has been expressed if any of the reasons hindering privatisation of the relevant object referred to in this Law exist at the time of submitting the submission.

[22 August 1996; 28 November 1996; 11 June 1997; 7 May 1998; 26 October 2000; 7 April 2004; 18 May 2006; 19 June 2014]

Section 2. Application and Objectives of the Law

This Law prescribes the procedures for privatisation of State and local government residential houses, and the objective thereof is to develop the immovable property market and to promote the putting into order of residential houses by protecting the interests of residents.

Section 3. Openness and Voluntary Nature of Privatisation

(1) Privatisation shall be performed openly by informing society of privatisation objects and explaining the conditions and procedures for privatisation.

(2) Openness of privatisation shall be ensured by privatisation commissions in publishing information in the cases specified and the procedures provided for in this Law.

(3) Any natural and legal person has the right to receive information on privatisation objects, conditions and procedures for privatisation.

(4) Tenants and lessees of apartments, artist's workshops in State and local government apartment houses as well as single dwellings shall privatise them on a voluntary basis.

Section 4. Types of Privatisation

(1) Privatisation shall take place by redeeming the privatisation object referred to in Sections 7 and 8 of this Law and concluding a purchase contract or by receiving the privatisation object into ownership free of charge and entering into an agreement.

(2) A privatisation object may be redeemed according to the following procedures:

1) the person concerned purchases the privatisation object offered;

2) the person concerned purchases the privatisation object offered to the public through a public auction;

3) a land owner purchases the privatisation object offered to the public.

Section 5. Means and Procedures of Payment

(1) Payments for the privatised object shall be made in privatisation certificates and euros in accordance with Sections 45 and 46 of this Law.

(2) The Cabinet shall specify a person (it can also be a private person) (hereinafter - the authority specified by the Cabinet) to whose account the payments for the objects referred to in Section 45, Paragraph three, Section 73.³, Paragraph nine, and Section 73.⁴, Paragraph six of this Law are transferred starting from 1 March 2014.

[19 September 2013; 16 January 2014]

Section 6. Persons who have the Right to Privatise Apartments, Non-residential Premises, Artist's Workshops as well as Single Dwellings and Apartment Houses

The following persons have the right to privatise the privatisation objects referred to in Sections 7 and 8 of this Law in accordance with the procedures specified by this Law:

1) owners of privatisation certificates who are Latvian citizens, non-citizens, and persons who have received a permanent residence permit;

2) owners of privatisation certificates who are legal persons who have the right to purchase land in accordance with the laws in force, except for the State, local governments, and capital companies in which State or local government capital shares separately or combined exceed 50 per cent.

[18 May 2006]

Chapter II
Privatisation Object

Section 7. Privatisation Object if the Residential House is Located on the Land Owned by the State or Local Government

(1) If an apartment house is completely or partly located on the land owned by the State or local government and restrictions to its acquisition into ownership are applicable to even one of the privatising persons in accordance with the law On Land Privatisation in Rural Areas, the law On Land Reform in the Cities of the Republic of Latvia, the Railway Law or other laws, the privatisation object shall be an apartment (the total undivided share of the apartment), non-residential premises, or an artist's workshop in a residential house together with the corresponding undivided share of the residential house in joint property. The owner of the privatised object shall have the lease rights of the land parcel owned by the State or local government for 99 years.

(2) If an apartment house is completely or partly located on the land owned by the State or local government, the privatisation object shall be an apartment (the total undivided share of the apartment), non-residential premises, or an artist's workshop in a residential house together with the corresponding undivided share of the residential house in joint property and the undivided share of the land parcel owned by the State or local government, except for the cases referred to in Paragraph one of this Section.

(3) If a single dwelling or apartment house is completely or partly located on the land owned by the State or local government and restrictions to its acquisition into ownership are applicable to the privatising person in accordance with the law On Land Privatisation in Rural Areas, the law On Land Reform in the Cities of the Republic of Latvia, the Railway Law or other laws, the privatisation object shall be the single dwelling or undivided share thereof or the apartment house. The owner of the privatised object shall have the lease rights of the land parcel owned by the State or local government for 99 years.

(4) If a single dwelling or apartment house is completely or partly located on the land owned by the State or local government, the privatisation object shall be the single dwelling or undivided share thereof or the apartment house together with the land parcel owned by the State or local government, except for the cases referred to in Paragraphs three, five, and six of this Section.

(5) If a single dwelling or apartment house is located on the land owned by the State or local government which is partly located within the red lines of roads, streets, or driveways marked in the spatial plan approved by a local government council, such land may be divided in accordance with the provisions of the laws and regulations governing general spatial planning, use, and building by separating such land which is located within the red lines of roads, streets, or driveways. After the privatisation restriction referred to in this Paragraph no longer exists, namely after division of the land owned by the State or local government, the privatisation object shall be a single dwelling or undivided share thereof, an apartment house, an apartment, artist's workshop, or non-residential premises in a residential house together with a respective undivided share of the residential house in joint property, and an undivided share of the land parcel under the residential house which is not located within the red lines of roads, streets, or driveways.

(6) If a single dwelling or apartment house is completely or partly located on the land owned by the State or local government on which buildings that cannot be privatised in accordance with the procedures laid down in this Law are also located, this land may be divided in accordance with the provisions of the laws and regulations governing general spatial planning, use, and building. After the privatisation restriction referred to in this Paragraph no longer exists, namely after division of the land owned by the State or local government, the privatisation object shall be a single dwelling or undivided share thereof, an apartment house, or an apartment (the total undivided share of the apartment), an artist's workshop, or non-residential premises in a residential house together with a respective undivided share of the residential house in joint property and an undivided share of the separated land parcel owned by the State or local government.

(7) If a single dwelling or apartment house is completely or partly located on the land owned by the State or local government which is located within the red lines of roads, streets, or driveways marked in the spatial plan approved by a local government council or on which buildings that cannot be privatised in accordance with the procedures laid down in this Law are also located, and the land may not be divided in accordance with the requirements of Paragraph five or six of this Section, the owner of the privatised object shall have the lease rights of the land parcel owned by the State or local government for 99 years.

[27 June 2002; 18 May 2006; 19 June 2014]

Section 7.¹ Privatisation Object if the Residential House is Located on the Land in Joint Property of the State or Local Government and a Natural or Legal Person

(1) If a single dwelling or apartment house is completely or partly located on the land in joint property of the State or local government and a natural or legal person, such land may be divided into actual shares in proportion to the size of the undivided shares owned by the State or local government and a natural or legal person upon mutual agreement between the joint owners by imposing certain servitudes, where necessary, on one share in favour of the other share. In dividing land in joint property, the laws and regulations regarding general spatial planning, use, and building shall be followed.

(2) After the privatisation restriction referred to in Paragraph one of this Section no longer exists, namely after the actual division of the land in joint property of the State or local government and a natural or legal person, the privatisation object shall be a single dwelling or undivided share thereof, an apartment house, or an apartment (the total undivided share of the apartment), an artist's workshop, or non-residential premises in a residential house together with a respective undivided share of the residential house in joint property and an undivided share of the separated land parcel owned by the State or local government.

[19 June 2014 / See Paragraphs 48 and 49 of Transitional Provisions]

Section 8. Privatisation Object if the Residential House is Located on the Land Owned by a Natural or Legal Person

If a single dwelling or apartment house is located on the land owned by a natural or legal person, the privatisation object shall be an apartment (the total undivided share of the apartment), an artist's workshop, or non-residential premises in the apartment house together with the corresponding undivided share of the part of the house in joint property or the single dwelling or undivided share thereof, or the apartment house.

[16 December 1999; 27 June 2002; 18 May 2006]

Section 8.¹ Decision on Commencement of Privatisation of a Residential House

(1) The authority specified by the Cabinet (hereinafter - the authority carrying out privatisation of State residential houses) shall take the decision on commencement of privatisation of a residential house.

(2) A local government council shall take the decision on commencement of privatisation of a local government residential house.

[11 June 1997; 20 November 2003; 21 February 2008; 12 June 2009; 13 June 2019]

Chapter III
Conditions to be Complied with in Offering a Separate Apartment, Non-residential Premises, Artist's Workshop, Single Dwelling or Apartment House for Privatisation

Section 9. Conditions of Privatisation if the Residential House is a Joint Property

(1) If a residential house is a joint property of the State or local government and any other person, the part of the joint property owned by the State or local government shall be privatised as apartments, artist's workshops, or non-residential premises if previously the ownership rights of the State or local government to individual apartments, artist's workshops, or non-residential premises have been specified in accordance with the provisions of this Law. In performing division of the joint property, provisions of Section 1075 of the Civil Law shall not be applicable.

(2) If an agreement regarding division of a joint property, i.e. apartments, non-residential premises or artist's workshops, has not been reached among joint owners in accordance with Paragraph 20 of the Transitional Provisions of this Law, the State or local government shall sell its undivided share of the joint property at an auction in accordance with a respective Cabinet order or a decision of the relevant local government council, the Law on the Alienation of the Property of a Public Person, and this Law.

(3) If a single dwelling is a joint property of the State or local government and any other person, the part of the joint property belonging to the State or local government may be privatised by the joint owner (joint owners) thereof.

[16 December 1999; 18 May 2006; 21 February 2013]

Section 10. Conditions of Privatisation if a Residential House has been Nationalised or Illegally Alienated

A single dwelling or undivided share thereof, or an apartment house as well as an apartment, non-residential premises, and artist's workshop in an apartment house which has been nationalised or illegally alienated after 21 July 1940 shall be privatised if:

1) the former owner of the house or his or her heirs have not submitted an application in accordance with the procedures and time periods specified in the Law;

2) the application has been rejected in accordance with the procedures specified in the Law;

3) the former owner of the house or his or her heirs have requested compensation for the nationalised or illegally alienated residential house.

[16 December 1999]

Section 11. Conditions of Privatisation if a Residential House has been Recognised as a Cultural Monument

A single dwelling or apartment house, apartment, non-residential premises, and artist's workshop in a house which has been recognised as a cultural monument, and also an apartment, non-residential premises, an artist's workshop, single dwelling or apartment house to which a cultural monument belongs shall be privatised in conformity with the requirements specified in the law On Protection of Cultural Monuments.

Section 12. Conditions of Privatisation of Service Apartments

A service apartment may be privatised if the status of service apartment has been previously withdrawn.

Chapter IV
Sequence for the Privatisation of Single Dwellings or Apartment Houses, Apartments, Non-residential Premises, and Artist's Workshops that are Located in Apartment Houses Built on the Land Belonging to the State or Local Government

Section 13. Sequence for the Privatisation of an Apartment or Single Dwelling for the Use of which a Residential Tenancy Agreement has been Concluded

(1) Any apartment for the use of which a residential tenancy agreement has been concluded (hereinafter - the rented apartment) shall be offered for privatisation to the tenant of such apartment and his or her family members.

(2) A tenant of an apartment and his or her family members may privatise the rented apartment if:

1) the tenant of the apartment and his or her family members enter into an agreement which is notarised or certified by a privatisation commission regarding which one of them will privatise the rented apartment. If the tenant of the apartment and his or her family members wish to privatise the apartment as a joint property, the subsequent procedures for use of residential premises shall be provided for in the abovementioned deed of agreement;

2) a claim regarding termination of the tenancy agreement and eviction of the tenant and his or her family members has not been brought to the court.

(3) If a tenant and his or her family members do not reach an agreement regarding which one of them will privatise the rented apartment or refuse from privatisation thereof, the privatisation commission shall not offer the apartment for privatisation to other persons. The tenant and his or her family members shall not lose the rights to privatise the apartment in future in conformity with the procedures specified in this Law, except for the case provided for in Paragraph four of this Section.

(4) The person indicated in Section 6 of this Law may privatise the apartment rented by a tenant with the consent of the tenant and his or her family members if the tenant and his or her family members refuse from privatisation of the apartment and enter into an agreement which is notarised or certified by a privatisation commission with the person who wishes to privatise the abovementioned apartment. In such case the tenant shall preserve the rights of use of residential space unless provided otherwise in the agreement.

(5) A single dwelling regarding the use of which a residential tenancy agreement has been concluded (hereinafter - the rented single dwelling) shall be privatised in conformity with the provisions of this Section.

[22 August 1996; 7 May 1998; 16 December 1999]

Section 14. Sequence for the Privatisation of Communal Apartments

(1) A communal apartment may be privatised in accordance with the procedures specified in Paragraph three or 3.¹ of this Section.

(2) Any communal apartment shall be offered for privatisation to each tenant of the residential space of such apartment and his or her family members.

(3) A communal apartment may be privatised if:

1) the tenants of the apartment and their family members enter into an agreement which is notarised or certified by a privatisation commission regarding which one of them will privatise the apartment. If tenants of the apartment and their family members wish to privatise the apartment as a joint property, the subsequent procedures for use of residential premises shall be provided for in the abovementioned deed of agreement;

2) a claim regarding termination of the tenancy agreement and eviction of the tenant and his or her family members has not been brought to the court.

(3¹) A tenant of a communal apartment and his or her family members may privatise the undivided share of the communal apartment according to the area of the apartment rented by him or her if:

1) the tenants of the communal apartment and their family members have refused from privatisation of the communal apartment in accordance with the procedures specified in Paragraph two of this Section;

1¹) the tenant of the communal apartment and his or her family members shall enter into an agreement which is notarised or certified by a privatisation commission regarding which one of them will privatise the undivided share of the communal apartment;

2) a claim regarding termination of such tenancy agreements and eviction of such tenants and their family members who wish to privatise the undivided share of the communal apartment has not been brought to the court;

3) an agreement with an authority authorised by a State or local government regarding subsequent procedures for use of the communal apartment has been entered into.

(4) If tenants and their family members do not reach an agreement regarding which one of them will privatise the communal apartment or refuse from privatisation thereof, the privatisation commission shall not offer the apartment for privatisation to other persons. Tenants and their family members shall not lose the rights to privatise the communal apartment in future in conformity with the procedures specified in this Law, except for the case provided for in Paragraph five of this Section.

(5) The person indicated in Section 6 of this Law may privatise the communal apartment rented by tenants with a consent of the tenants and their family members if the tenants and their family members refuse from privatisation of the apartment and enter into an agreement which is notarised or certified by a privatisation commission with the person who wishes to privatise the abovementioned apartment. In such case the tenant shall preserve the rights of use of residential space unless provided otherwise in the agreement.

(6) If separate residential spaces of a communal apartment have not been rented, a tenant (tenants) of the communal apartment and his or her family members shall privatise the entire communal apartment in accordance with the procedures specified in this Law.

[22 August 1996; 7 May 1998; 16 December 1999; 18 May 2006; 21 February 2008]

Section 15. Sequence for Privatisation of an Apartment or Single Dwelling for the Use of which a Residential Tenancy Agreement has not been Concluded

(1) An apartment regarding the use of which a residential tenancy agreement has not been concluded (hereinafter - the unrented apartment) shall be offered for privatisation to the public in a public auction. The following natural persons shall be the first to participate therein:

1) who rent residential space in denationalised houses or houses returned to the lawful owners on the basis of a residential tenancy agreement which has been concluded prior to denationalisation or returning of such houses to the former owners and against which claims have been brought to the court regarding termination of the residential tenancy agreement and the owners are not obliged to provide such persons with an equal residential space in accordance with the provisions of the law On Residential Tenancy;

2) who are to be evicted from a denationalised house or a house returned to the lawful owner pursuant to a judgment of a court which has come into lawful effect, and the owner is not obliged to provide such persons with an equal residential space in accordance with the provisions of the law On Residential Tenancy.

(2) If none of the persons referred to in Paragraph one of this Section have applied to privatise the unrented apartment, the following natural persons who have applied to a public auction shall participate concurrently in the auction:

1) who rent residential space in the house which has become unfit for living due to a natural disaster or whose structure is in a state of disrepair;

2) who rent residential space in a denationalised house or a house returned to a lawful owner or a house regarding which a relevant decision on return to the lawful owner has been taken or regarding which a decision on restoration of ownership rights has been taken, or in a house the former owner of which or heirs thereof have submitted an application for restoration of ownership rights in accordance with the law On the Denationalisation of Building Properties in the Republic of Latvia and the law On the Return of Building Properties to Lawful Owners if a tenancy agreement has been concluded prior to denationalisation or return of such houses to former owners;

3) in whose family there are three or more minor children if they rent an insufficiently large residential space and are registered at the local government for receipt of aid for resolving of apartment matters;

4) who rent residential space in a communal apartment for more than five years;

5) who rent residential space without facilities for more than 40 years;

6) who are to be evicted from the rented residential premises pursuant to a judgment of a court which has come into lawful effect without provision with another residential space.

(3) If none of the persons referred to in Paragraphs one and two of this Section have applied to privatise the unrented apartment, only the natural persons who have property compensation certificates and who have applied to the auction shall participate in the public auction.

(4) If none of the persons referred to in Paragraphs one, two, and three of this Section have applied to privatise the unrented apartment, such natural and legal persons which are owners of property compensation certificates of any type and which have applied to the auction shall participate in the public auction.

(5) A person who has privatised the unrented apartment in accordance with the procedures specified in Paragraphs one and two of this Section shall not alienate it three years after the person has acquired the relevant apartment in an auction.

(6) In accordance with the procedures specified in this Section, the persons referred to in Paragraphs one and two of this Section may privatise the unrented apartment only once.

(7) A single dwelling regarding the use of which a residential tenancy agreement has not been concluded (hereinafter - the unrented single dwelling) shall be privatised in compliance with the provisions of this Section.

(8) An unrented local government apartment or a single dwelling by a decision of the local government council and an unrented State apartment or a single dwelling by a decision of the authority carrying out privatisation of State residential houses may be offered for privatisation at a public auction by making payments in euros.

[7 April 2004; 24 February 2005; 21 February 2008; 12 June 2009; 19 September 2013; 13 June 2019]

Section 16. Sequence for Privatisation of an Apartment House where the Apartments, Non-residential Premises, and Artist's Workshops are not Rented or Leased

(1) An apartment house where the apartments, non-residential premises, and artist's workshops are not rented or leased (hereinafter - the unrented apartment house) shall be offered for privatisation as one whole object. A decision on privatisation of the unrented apartment house as one whole object shall be taken by a local government council or the authority carrying out privatisation of State residential houses.

(2) The unrented apartment house shall be offered for privatisation to the public as one whole object at a public auction by making payments in euros.

(3) [24 February 2005]

(4) [24 February 2005]

[11 June 1997; 20 November 2003; 24 February 2005; 21 February 2008; 12 June 2009; 19 September 2013; 13 June 2019]

Section 17. Sequence for Privatisation of an Artist's Workshop

(1) Any leased artist's workshop shall be offered for privatisation to the lessee of the workshop who is an artist in accordance with the requirements of Section 1, Clause 19 of this Law.

(2) A lessee of an artist's workshop may privatise it if:

1) he or she is an artist in accordance with the requirements of Section 1, Clause 19 of this Law;

2) a claim regarding termination of a lease contract has not been brought to the court;

3) workshop of the relevant artist has been built and put into service pursuant to a building design approved in accordance with the procedures specified in laws and regulations. This provision shall not apply to an artist's workshop regarding the use of which a lease contract has been concluded until coming into force of this Law.

(3) If a lessee of an artist's workshop who is an artist in accordance with the requirements of Section 1, Clause 19 of this Law refuses to privatise the leased workshop, it shall not be offered for privatisation to another person until the end of validity of the lease contract. A lessee of an artist's workshop who is an artist in accordance with the requirements of Section 1, Clause 19 of this Law shall not lose the rights to privatise the leased workshop until the end of validity of the lease contract in compliance with the procedures specified in this Law.

(4) An artist's workshop the lessee of which is not entitled to privatise it as well as an artist's workshop regarding the use of which a lease contract of non-residential premises has not been concluded (hereinafter - the unleased artist's workshop) shall be offered for privatisation in a public auction only to the artists who are owners of privatisation certificates.

[14 December 2000; 5 July 2001]

Section 18. Sequence for Privatisation of Non-residential Premises

(1) Any non-residential premises regarding the use of which a lease contract of non-residential premises has been concluded (hereinafter - the leased non-residential premises) shall be offered for privatisation to a lessee of the premises.

(2) A lessee of non-residential premises may privatise the leased non-residential premises if:

1) a lease contract of the relevant non-residential premises which has been concluded in accordance with the procedures specified in the Law is valid at the time of submission of a privatisation application;

2) the rental fee and payment for public utility services of the non-residential premises is fully paid at the time of submission of a privatisation application;

3) other liabilities provided for in the lease contract of the non-residential premises have been duly fulfilled;

4) taxes have been paid.

(3) Non-residential premises which the lessee refuses to privatise or is not entitled to privatise or regarding the use of which a lease contract has not been concluded shall be offered for privatisation to the public in a public auction where at first natural and legal persons who have property compensation certificates participate.

(4) If none of the persons who have property compensation certificates have applied to privatise the non-residential premises referred to in Paragraph three of this Section, such natural and legal persons which are owners of property compensation certificates of any type and which have applied to the auction shall participate in the public auction.

[22 August 1996; 28 November 1996; 11 June 1997; 16 December 1999; 26 October 2000; 5 July 2001]

Chapter V
Sequence for Privatisation of Single Dwellings or Apartment Houses as well as Apartments, Non-residential Premises, and Artist's Workshops that are Located in Apartment Houses Built on the Land Belonging to Natural or Legal Persons

Section 19. Sequence for Privatisation of the Rented Apartment or Rented Single Dwelling

(1) Any rented apartment shall be offered for privatisation to each tenant of the apartment and his or her family members.

(2) A tenant of an apartment and his or her family members may privatise the rented apartment if:

1) the tenant of the apartment and his or her family members enter into an agreement which is notarised or certified by a privatisation commission regarding which one of them will privatise the rented apartment. If the tenant of the apartment and his or her family members wish to privatise the apartment as a joint property, the subsequent procedures for use of residential premises shall be provided for in the abovementioned deed of agreement;

2) a claim regarding termination of the tenancy agreement and eviction of the tenant and his or her family members has not been brought to the court.

(3) If a tenant and his or her family members do not reach an agreement regarding which one of them will privatise the rented apartment or refuse from privatisation thereof, the privatisation commission shall not offer the apartment for privatisation to other persons. The tenant and his or her family members shall not lose the rights to privatise the apartment in future in conformity with the procedures specified in this Law, except for the case provided for in Paragraph four of this Section.

(4) An owner of the land parcel on whose land the residential house has been built or another person indicated in Section 6 of this Law may privatise the apartment rented by a tenant with the consent of the tenant and his or her family members if the tenant and his or her family members refuse from privatisation of the apartment and enter into an agreement which is notarised or certified by a privatisation commission with the person who wishes to privatise the abovementioned apartment.

(5) A single dwelling that is rented out shall be privatised in accordance with this Section.

[22 August 1996; 7 May 1998]

Section 20. Sequence for the Privatisation of Communal Apartments

(1) A communal apartment may be privatised in accordance with the procedures specified in Paragraph three or 3.¹ of this Section.

(2) Any communal apartment shall be offered for privatisation to each tenant of the residential space of such apartment and his or her family members.

(3) A communal apartment may be privatised if:

1) the tenants of the apartment and their family members enter into an agreement which is notarised or certified by a privatisation commission regarding which one of them will privatise the apartment. If tenants of the apartment and their family members wish to privatise the apartment as a joint property, the subsequent procedures for use of residential premises shall be provided for in the abovementioned deed of agreement;

2) a claim regarding termination of the tenancy agreement and eviction of the tenant and his or her family members has not been brought to the court.

(3¹) A tenant of a communal apartment and his or her family members may privatise the undivided share of the communal apartment according to the area of the apartment rented by him or her if:

1) the tenants of the communal apartment and their family members have refused from privatisation of the communal apartment in accordance with the procedures specified in Paragraph two of this Section;

1¹) the tenant of the communal apartment and his or her family members shall enter into an agreement which is notarised or certified by a privatisation commission regarding which one of them will privatise the undivided share of the communal apartment;

2) a claim regarding termination of such tenancy agreements and eviction of such tenants and their family members who wish to privatise the undivided share of the communal apartment has not been brought to the court;

3) an agreement with an authority authorised by a State or local government regarding subsequent procedures for use of the communal apartment has been entered into.

(4) If tenants and their family members do not reach an agreement regarding which one of them will privatise the communal apartment or refuse from privatisation thereof, the privatisation commission shall not offer the apartment for privatisation to other persons. Tenants and their family members shall not lose the rights to privatise the communal apartment in future in conformity with the procedures specified in this Law, except for the case provided for in Paragraph five of this Section.

(5) An owner of the land parcel on whose land the residential house has been built or another person indicated in Section 6 of this Law may privatise the apartment rented by tenants with the consent of tenants and their family members if tenants and their family members refuse from privatisation of the apartment and enter into an agreement which is notarised or certified by a privatisation commission with the person who wishes to privatise the abovementioned apartment.

(6) If separate residential spaces of a communal apartment have not been rented, a tenant (tenants) of the communal apartment and his or her family members shall privatise the entire communal apartment in accordance with the procedures specified in this Law.

[22 August 1996; 7 May 1998; 16 December 1999; 18 May 2006; 21 February 2008]

Section 21. Sequence for Privatisation of the Unrented Apartment

(1) The unrented apartment shall be offered for privatisation to the public in a public auction. The following natural persons shall be the first to participate therein:

1) who rent residential space in denationalised houses or houses returned to the lawful owners on the basis of a residential tenancy agreement which has been concluded prior to denationalisation or returning of such houses to the former owners and against which claims have been brought to the court regarding termination of the residential tenancy agreement and the owners are not obliged to provide such persons with an equal residential space in accordance with the provisions of the law On Residential Tenancy;

2) who are to be evicted from a denationalised house or a house returned to the lawful owner pursuant to a judgment of a court which has come into lawful effect, and the owner is not obliged to provide such persons with an equal residential space in accordance with the provisions of the law On Residential Tenancy.

(2) If none of the persons referred to in Paragraph one of this Section have applied to privatise the unrented apartment, the following natural persons who have applied to a public auction shall participate concurrently in the auction:

1) who rent residential space in the house which has become unfit for living due to a natural disaster or whose structure is in a state of disrepair;

2) who rent residential space in a denationalised house or a house returned to a lawful owner or a house regarding which a relevant decision on return to the lawful owner has been taken or regarding which a decision on restoration of ownership rights has been taken, or in a house the former owner of which or heirs thereof have submitted an application for restoration of ownership rights in accordance with the law On the Denationalisation of Building Properties in the Republic of Latvia and the law On the Return of Building Properties to Lawful Owners if a tenancy agreement has been concluded prior to denationalisation or return of such houses to former owners;

3) in whose family there are three or more minor children if they rent an insufficiently large residential space and are registered at the local government for receipt of aid for resolving of apartment matters;

4) who rent residential space in a communal apartment for more than five years;

5) who rent residential space without facilities for more than 40 years;

6) who are to be evicted from the rented residential premises pursuant to a judgment of a court which has come into lawful effect without provision with another residential space.

(3) If none of the persons referred to in Paragraphs one and two of this Section have applied to privatise the unrented apartment, only the natural persons who have property compensation certificates and who have applied to the auction shall participate in the public auction.

(4) If none of the persons referred to in Paragraphs one, two, and three of this Section have applied to privatise the unrented apartment, such natural and legal persons which are owners of property compensation certificates of any type and which have applied to the auction shall participate in the public auction.

(5) A person who has privatised the unrented apartment in accordance with the procedures specified in Paragraphs one and two of this Section shall not alienate it three years after the person has acquired the relevant apartment in an auction.

(6) In accordance with the procedures specified in this Section, the persons referred to in Paragraphs one and two of this Section may privatise the unrented apartment only once.

(7) An owner of the land parcel on whose land a residential house has been built has the right, upon his or her choice, to privatise one unrented apartment which exists in the house and is offered for privatisation to the public in conformity with the procedures specified in Section 38, Paragraphs two and three of this Law. The privatisation commission shall send the land owner a notification of privatisation of the unrented apartment in a public auction, specifying the time period for the submission of the privatisation application. The notification shall be sent to the address which is referred to in the immovable property taxpayer register or which has been previously presented by the land owner to the privatisation commission. In privatising any other privatisation object provided for in this Law, the owner of the land parcel shall have to observe the sequence and the procedures of privatisation specified in this Law. The successor in title of the owner of the land parcel does not have the rights referred to in this Law if the previous owner of the land parcel has already used them.

(8) An unrented local government apartment or a single dwelling by a decision of the local government council and an unrented State apartment or a single dwelling by a decision of the authority carrying out privatisation of State residential houses may be offered for privatisation at a public auction by making payments in euros.

[7 April 2004; 24 February 2005; 21 February 2008; 12 June 2009; 19 September 2013; 13 June 2019]

Section 22. Sequence for Privatisation of the Unrented Single Dwelling or Unrented Apartment House

(1) The unrented single dwelling shall be at first offered for privatisation to an owner of the land parcel which is a natural or legal person on whose land a residential house has been built. If the unrented single dwelling is located on the land of several natural persons or legal persons and all the land owners or several of them have submitted privatisation applications, they may privatise the house as a joint property. If the land owners do not agree to establishment of a joint property or do not agree otherwise, the owner of the largest part of the land parcel has the rights to privatise the unrented single dwelling. If land owners agree to privatise the house as a joint property, they shall enter into an agreement which is notarised or certified by a privatisation commission. The procedures for utilisation of the referred to single dwelling shall be provided for in the deed of agreement. If the unrented single dwelling is concurrently located on the land of the State or local governments and a natural or legal person, the privatisation commission shall offer the house for privatisation to the land owner which is a natural or legal person.

(2) If an owner of the land parcel refuses to privatise the single dwelling referred to in Paragraph one of this Section, it shall be offered for privatisation to the public at a public auction by making payments in euros.

(3) The unrented apartment house shall be offered for privatisation as one whole object. A decision on privatisation of the unrented apartment house as one whole object shall be taken by a local government council or the authority carrying out privatisation of State residential houses.

(4) The unrented apartment house shall be offered for privatisation as one whole object in conformity with the procedures specified in Paragraph one of this Section. If an owner of the land parcel refuses to privatise the respective apartment house, the privatisation commission shall offer it for privatisation to the public at a public auction by making payments in euros.

(5) [24 February 2005]

(6) An owner of the land parcel shall privatise the unrented single dwelling for certificates but the unrented apartment house - by making payments in euros.

[11 June 1997; 20 November 2003; 24 February 2005; 21 February 2008; 12 June 2009; 19 September 2013; 13 June 2019]

Section 23. Sequence for Privatisation of an Artist's Workshop

An artist's workshop that is located in an apartment house which is built on the land of a natural or legal person shall be privatised in conformity with Section 17 of this Law.

Section 24. Sequence for Privatisation of Non-residential Premises

The leased and unleased non-residential premises (except for artist's workshop) that are located in an apartment house which is built on the land of a natural or legal person shall be privatised in conformity with Section 18 of this Law.

Chapter VI
Evaluation of a Privatisation Object

Section 25. Sequence of Evaluation of a Privatisation Object

At first, unrented single dwellings and apartment houses as well as apartment houses with non-residential premises shall be evaluated and offered for privatisation.

[7 May 1998]

Section 26. Institutions which Perform the Evaluation of a Privatisation Object

(1) The privatisation commission shall organise and perform preparation of the documents (survey files of a residential house, documents confirming land ownership rights, residential tenancy agreements, accounting of tenancy and lease payments etc.) necessary for privatisation of an apartment, non-residential premises, artist's workshop, single dwelling or undivided share thereof and apartment house and evaluation of a privatisation object in accordance with the procedures specified by the Cabinet.

(2) The privatisation commission may invite experts for specification of the value of privatisation object.

[16 December 1999]

Section 27. Specification of Value and Initial Auction Price of a Privatisation Object

(1) The privatisation commission shall specify the value of a privatisation object in accordance with Cabinet regulations.

(2) The value of the privatisation objects referred to in Section 7 of this Law shall be formed by:

1) construction costs (costs of capital repairs, re-appraisal, depreciation and infrastructure);

2) supplement or discount for the location of residential house;

3) supplement or discount for the layout of an apartment, non-residential premises, and artist's workshop in the relevant residential house and other non-financial factors;

4) cadastral value of the land parcel on which the residential house is built.

(3) The value of the privatisation objects referred to in Section 8 of this Law shall be formed by:

1) construction costs (costs of capital repairs, re-appraisal, depreciation and infrastructure);

2) supplement or discount for the location of residential house;

3) supplement or discount for the layout of an apartment, non-residential premises, and artist's workshop in the relevant residential house and other non-financial factors.

(4) The initial auction price of an apartment and artist's workshop (except for non-residential premises) shall be equivalent to the price of the relevant object which has been specified in conformity to the provisions of Paragraph two or three of this Section. In case of repeated auction of the privatisation object, the privatisation commission is entitled to take the decision to reduce the initial auction price.

(5) In specifying the initial auction price of non-residential premises (except for an artist's workshop), the value of one square metre thereof shall not be less than double the average value of one square metre in the relevant residential house. In case of repeated auction of the privatisation object, the privatisation commission is entitled to take the decision to reduce the initial auction price.

(6) Payment for lease rights of the land parcel belonging to the State or local government for 99 years shall be equivalent to the purchase price of the same land parcel in buying it for ownership.

[26 October 2000]

Section 28. Determination of the Land Parcel That is Functionally Necessary for a Residential House to be Privatised

(1) The area and borders of the land parcel that is functionally necessary for a residential house to be privatised shall be determined in the following cases:

1) the land parcel owned by the State or local government is to be privatised in accordance with the procedures laid down in this Law;

2) the land parcel owned by the State or local government is to be transferred for lease for 99 years in accordance with the procedures laid down in this Law;

3) the State or local government residential house to be privatised is completely or partly located on the land owned by a natural or legal person.

(2) In determining the land parcel that is functionally necessary for a residential house to be privatised, the provisions of laws and regulations regarding general spatial planning, use, and building shall be followed, in particular:

1) the existing building;

2) the building parameters;

3) the planning rules for courtyards;

4) the need to ensure access to and availability of transport infrastructure, necessary engineering communications networks etc.;

5) the need to ensure that after determination of the land parcel that is functionally necessary for the residential house to be privatised the owner of the land parcel would be able to use the remaining part of the land parcel according to the determined purpose of use.

(3) A local government council or an authority authorised thereby, or the authority carrying out privatisation of State residential houses shall determine the area and borders of the land parcel that is functionally necessary for a residential house to be privatised.

(4) The land parcel that is functionally necessary for a residential house to be privatised shall be determined during the preparation process of the privatisation of the residential house in accordance with the procedures laid down by the Cabinet.

[19 June 2014; 13 June 2019]

Chapter VII
Notification of Privatisation and Provision of Response Thereto

Section 29. Offer to Privatise the Specific Privatisation Object

(1) The privatisation commission shall, not later than within three months after taking the decision to commence privatisation of a residential house, offer the following persons to purchase a privatisation object, sending a notification thereof:

1) to the tenant of a rented residential space or single dwelling by offering him or her to privatise the apartment or single dwelling rented by him or her (Section 13, Paragraph one, Section 14, Paragraph two, Section 19, Paragraph one, Section 20, Paragraph two);

2) to the lessee of the leased artist's workshop by offering him or her to privatise the artist's workshop leased by him or her (Section 17, Paragraph one, Section 23);

3) to the lessee of the leased non-residential premises by offering him or her to privatise the non-residential premises leased by him or her (Section 18, Paragraph one, Section 24);

4) to the land owner by offering him or her to privatise the unrented single dwelling or apartment house (Section 22, Paragraphs one and four);

5) to the joint owner of a single dwelling by offering him or her to privatise a part of the joint property of the single dwelling belonging to the State or local government.

(2) A privatisation notification which has been received by a tenant of an apartment or any of the adult family members of the tenant shall also be concurrently applicable to all members of his or her family.

(3) If the unrented residential house is built on the land of several land owners, the privatisation notification shall be sent in conformity to the provisions of Section 22, Paragraph one of this Law.

(4) The privatisation notification shall be regarded as received from the time when a tenant or any of adult members of his or her family, a lessee of an artist's workshop or non-residential premises or a land owner has confirmed by his or her signature that he or she has received the notification. A person who has received a notification of privatisation of an apartment has a duty to introduce all family members with the notification within a time period of one month from the day of receipt of the privatisation notification.

[22 August 1996; 11 June 1997; 7 May 1998; 16 December 1999; 7 April 2004]

Section 30. Content of the Privatisation Notification

The following shall be indicated in the privatisation notification:

1) the given name and surname or the official name of a tenant and his or her family members, a land owner, a joint owner or a lessee of a single dwelling;

2) the privatisation object, address and area thereof;

3) the owner of the land parcel on which the residential house to be privatised has been built;

4) the value of the privatisation object;

5) the rights and obligations of a tenant (his or her family members), lessee, joint owner of a single dwelling or owner of the land parcel in privatisation of the object;

6) the possible legal effects in case of refusal of privatisation or in case if a person who has received the notification of privatisation of an apartment has not introduced the family members with the notification;

7) the time period by which a response to the privatisation notification should be provided;

8) the place where the privatisation application should be submitted and information on the privatisation object could be received.

[7 May 1998; 16 December 1999]

Section 31. Response to the Privatisation Notification

The persons referred to in Section 29, Paragraph one of this Law shall respond to the privatisation notification by submitting the privatisation application or the refusal to privatise the offered privatisation object.

Section 32. Submission of the Privatisation Application

(1) A person who wishes to privatise the privatisation object indicated in the notification shall submit the privatisation application to the privatisation commission within one month from the day of receipt of the privatisation notification.

(2) A lessee of non-residential premises shall have to pay a debt for the lease of non-residential premises and public utility services, where such debt exists, within the time period specified in Paragraph one of this Section. Within the specified time period, a lessee of non-residential premises shall have to fulfil the obligations which, pursuant to a lease contract, should be fulfilled until the time of submission of the privatisation application as well as pay taxes. In case of non-payment of the debt and non-fulfilment of the contractual obligations, the privatisation application shall not be accepted.

(3) In the cases specified in Section 13, Paragraphs two and four, Section 14, Paragraphs three and five, Section 19, Paragraphs two and four, Section 20, Paragraphs three and five and Section 22, Paragraphs one and four of this Law, an agreement which is notarised or certified by a privatisation commission regarding which person or persons will privatise the privatisation object offered to them shall be submitted concurrently with the privatisation application.

(4) In the case specified in Section 47 of this Law, the documents proving that the house which has been owned by a natural person has been alienated for the needs of the State and that compensation for the alienated house has been granted to the owner of the house and his or her family members shall be submitted concurrently with the privatisation application.

[22 August 1996; 7 May 1998]

Section 33. Content of the Privatisation Application

(1) The following shall be indicated in the privatisation application:

1) given name, surname, personal identity number, address of the place of residence of the natural person or name, address, registration date, registration number of the legal person who wishes to privatise the offered object;

2) type of certificates belonging to the person and the certificate account number;

3) address and area of the relevant privatisation object;

4) his or her status in relation to the privatisation object;

5) information on the payments for tenancy, lease, and public utility services;

6) a resolution to undertake the liabilities of joint administration and management of an apartment house.

(2) A statement regarding settlement of payments for tenancy, lease, and public utility services or also debt of payments for tenancy, lease, and public utility services, where such debt exists, shall be appended to the privatisation application.

[7 May 1998]

Section 34. Refusal to Privatise the Offered Object

(1) A tenant and his or her family members, a lessee, a joint owner of a single dwelling, or a land owner shall notify the privatisation commission regarding refusal to privatise the offered object in writing not later than within one month from the day of receipt of the notification.

(2) Non-provision of a response to the notification within the period of time specified in Paragraph one of this Section shall also be regarded as a refusal to privatise the offered object.

(3) Refusal of a tenant and his or her family members to privatise the offered object shall not deprive them of the right to submit the privatisation application later, but not later than until 31 August 2006; if the decision to commence privatisation of a residential house has been taken after 28 February 2006 - within six months after a local government council or the authority performing privatisation of State residential houses has taken the decision to commence privatisation of the residential house.

[22 August 1996; 7 May 1998; 16 December 1999; 26 October 2000; 7 April 2004; 15 December 2005; 18 May 2006; 21 February 2008; 12 June 2009; 13 June 2019]

Section 34.¹ Notification of Concluding a Purchase Contract

(1) The privatisation commission shall send a notification of concluding a purchase contract to the person (persons) who has acquired an apartment, artist's workshop, or non-residential premises into ownership until privatisation of a residential house not later than within one month after the decision to commence privatisation of the residential house has been taken.

(2) The following shall be indicated in the notification of concluding a purchase contract:

1) the given name and surname of the person or name of the legal person who has acquired the apartment, artist's workshop, or non-residential premises into ownership until privatisation of the residential house;

2) the privatisation object, address and area thereof;

3) the owner of the land parcel on which the residential house to be privatised has been built;

4) the time period until which the purchase contract shall be concluded, and the place where information on the procedures for concluding the purchase contract may be received;

5) the consequences of not concluding the purchase contract in the time period indicated in the notification.

(3) The notification of concluding a purchase contract shall be regarded as received from the day when a person who has acquired an apartment, artist's workshop, or non-residential premises into ownership until privatisation of the residential house has confirmed by his or her signature that he or she has received the notification.

[11 June 1997]

Chapter VIII
Privatisation of an Object in Public Auction

Section 35. Time Period in which Privatisation of an Object in a Public Auction shall be Commenced

(1) The privatisation commission shall, not later that within a month after evaluation of the privatisation objects referred to in Section 15, Paragraphs one and seven, Section 16, Paragraph two, Section 17, Paragraph four, Section 18, Paragraph three, Section 21, Paragraph one, Section 22, Paragraphs two and four, Sections 23 and 24, offer them for privatisation to the public in a public auction in conformity with the sequence determined by this Law.

(2) Not later than within a month after the person referred to in Section 29, Paragraph one, Clauses 3 and 4 of this Law has refused to privatise the object offered thereto, the privatisation commission shall offer the object for privatisation to the public in a public auction in conformity with the sequence determined by this Law.

[22 August 1996; 7 April 2004; 24 February 2005]

Section 36. Public Offer to Privatise an Object at a Public Auction

(1) Any offer to privatise an object at a public auction shall be public, namely such offer shall be placed in a visible place at the building of the local government council and the building of the privatisation commission, and it shall also be published in the official gazette Latvijas Vēstnesis.

(2) Preparation of public offers for publication and the publication thereof in the official gazette Latvijas Vēstnesis shall be financed in accordance with the procedures laid down by the Cabinet.

[22 August 1996; 13 June 2019]

Section 37. Content of a Public Offer

(1) The following shall be indicated in a public offer to privatise an object:

1) the privatisation object, address and area thereof;

2) [5 July 2001];

3) [5 July 2001];

4) initial price of the privatisation object;

5) the time period by which the person who wishes to privatise the object in a public auction shall submit the privatisation application;

6) [5 July 2001];

7) the place where the privatisation application should be submitted and information on the privatisation object could be received;

8) the place and time of the auction of the privatisation object.

(2) The privatisation commission shall indicate in the provisions of the auction of the objects the range of the persons who have the right to purchase the privatisation objects referred to in Section 15, 16, 17, 18, 21, 22, 23 or 24 of this Law and who have the first right to participate in an auction.

(3) In the case referred to in Section 21, Paragraph seven of this Law, the owner of the land parcel and the time period by which the owner of the land has to submit the privatisation application shall be indicated in the public offer. Other persons may submit the privatisation application if the owner of the land has not submitted the privatisation application in the specified period of time.

[5 July 2001; 7 April 2004]

Section 38. Submission of the Privatisation Application

(1) A person who wishes to purchase the offered privatisation object in a public auction shall submit an application for participation in the auction to the privatisation commission within one month after the day of publication of the public offer. The information specified in Section 33 of this Law shall be indicated in the application.

(2) A land owner who, using the rights specified in Section 21, Paragraph seven of this Law, wishes to purchase the privatisation object indicated in the public offer shall submit an application to the privatisation commission within two weeks after the day of publication of the offer. The information specified in Section 33 of this Law shall be indicated in the application.

(3) If a land owner has applied within the time period specified in Paragraph two of this Section, the privatisation commission shall conclude a purchase contract with him of her in accordance with the procedures specified in Section 41 of this Law. In such case the auction shall not be organised even if other applicants have also applied for participation in the auction.

(4) If only one applicant has applied within the time period specified in Section 37, Paragraph one, Clause 5 of this Law, the privatisation commission shall conclude a purchase contract with him of her in accordance with the procedures specified in Section 41 of this Law.

(5) If several applicants have applied within the time period specified in Section 37, Paragraph one, Clause 5 of this Law who have equal rights to purchase the privatisation object, a public auction shall be organised.

(6) If no applicant has applied for participation in a public auction within the time period specified in Section 37, Paragraph one, Clause 5 of this Law, the privatisation commission shall extend the time period for application by applicants or shall notify the public of repeated sale of the privatisation object in an auction by changing the initial price thereof.

(7) [26 October 2000]

(8) If several land owners on whose land a residential house is located have applied, using the rights specified in Section 21, Paragraph seven of this Law, an auction shall be organised among them.

[22 August 1996; 26 October 2000; 7 April 2004; 24 February 2005]

Section 39. Legal Regulation of the Organisation of an Auction of a Privatisation Object

The privatisation commission shall organise an auction in accordance with this Law and Cabinet regulations.

Chapter IX
Purchase Contract

Section 40. Decision on Concluding a Purchase Contract

(1) The privatisation commission shall take the decision to conclude a purchase contract with the person referred to in Section 29, Paragraph one of this Law not later than within one month from the day when the privatisation application submitted by the person has been received.

(2) In the case referred to in Section 38, Paragraphs three and four of this Law, the privatisation commission shall take the decision to conclude a purchase contract with the person not later than within one month from the day when the privatisation application of the relevant person has been received.

(3) If the privatisation object offered to the public is being purchased in a public auction, the privatisation commission shall take the decision to approve the results of the auction and conclude a purchase contract with the person who has the winning bid for the relevant privatisation object not later than within one month from the day of the auction.

[11 June 1997]

Section 41. Concluding a Purchase Contract

(1) The privatisation commission shall, on the basis of the decision taken by it and a document confirming the payment (first deposit) made by a purchaser for the privatised object, conclude a purchase contract of the relevant object with the persons referred to in Section 40 of this Law.

(2) The privatisation commission shall conclude a purchase contract with a person who has acquired an apartment, artist's workshop, or non-residential premises into ownership until privatisation of the residential house on the basis of a certificate regarding ownership rights of the apartment, artist's workshop, or non-residential premises until privatisation of the residential house or a statement of the State Land Service. Concurrently a statement regarding payment of the house management expenditure and public utility services or also a statement regarding a debt of management expenditure and payments for public utility services, where such debt exists, shall be submitted to the privatisation commission.

(3) A purchase contract shall be concluded in writing in conformity with the provisions of Sections 1477-1484 of the Civil Law.

(4) Upon concluding a purchase contract with a person who has a debt of payments for tenancy, lease, house management expenditure or public utility services at the time of concluding the purchase contract, a pledge right to the privatised object shall be concurrently corroborated in favour of the State or local government according to the amount of the sum of debts at the time of concluding the purchase contract.

(5) A purchase contract and a pledge contract with a person who makes payments in accordance with Section 46 of this Law shall be concluded within one month from the day when the purchaser has made the first deposit and the privatisation commission has reached an agreement with the purchaser regarding the time periods of future payments.

(6) If the purchaser has not concluded a purchase contract and a pledge contract in accordance with the procedures specified in Paragraph five of this Section as well as has not done it within one month from the day of sending a warning or has not notified of the reasons which hinder the conclusion of the contact, the privatisation commission may cancel the decision to conclude a purchase contract, notifying the purchaser thereof. The payments made shall be reimbursed to the purchaser in accordance with the procedures and amount specified by the Cabinet.

[11 June 1997; 7 May 1998; 5 July 2001; 27 June 2002]

Section 42. Content of a Purchase Contract

(1) The Cabinet shall develop a standard purchase contract.

(2) The following shall be mandatorily indicated in a purchase contract:

1) the name, address of the privatised object;

2) a precise description of the privatised object;

3) the purchase price;

4) the means of payment, the time period and procedures for payment;

5) the procedures by which the privatised object is transferred to the purchaser;

6) liabilities to be assumed and additional liabilities of the purchaser;

7) the conditions of the land use rights;

8) the restriction on the property;

9) the liability for the breach of contractual obligations.

(3) Upon concluding a purchase contract with a person who has acquired an apartment, artist's workshop, or non-residential premises into ownership until privatisation of the residential house, the purchase price shall be the price for the transfer of the apartment, artist's workshop, or non-residential premises into ownership until privatisation of the residential house indicated in the decision of the privatisation commission in accordance with the procedures specified in Section 73.⁵ or 73.⁶ of this Law.

[28 November 1996; 11 June 1997]

Section 43. Specification of the Purchase Price

(1) In accordance with Section 27 of this Law, the privatisation commission shall specify the purchase price in conformity with the provisions of Paragraph four of this Section, except for the cases where the privatised object has been acquired in a public auction.

(2) The purchase price of an object acquired at an auction shall be the highest price bid.

(3) A purchase price shall be specified in euros and privatisation certificates respectively according to their nominal value.

(4) In specifying a purchase price, the privatisation commission shall take into account the following conditions:

1) if a person privatises an apartment in a residential house in the building or capital repairs of which he or she has invested resources or work and may prove it documentarily, the relevant investment shall be included in the purchase price;

2) if a person has purchased rental rights of an apartment from a local government after 1 September 1992 according to a local government decision, payment for the rental rights of the apartment shall be included in the purchase price;

3) if a lessee of an artist's workshop or non-residential premises privatises the leased space, expenditure related to improvement of the object shall be included in the purchase price if the expenditure have been performed with a written consent of the lessor. The lessee of the artist's workshop or non-residential premises shall submit an application regarding calculation of the expenditure referred to in this Section to the privatisation commission not later than within one month from the day when a privatisation notification has been received or concurrently with an application regarding transfer of the artist's workshop or non-residential premises into ownership until privatisation of the residential house.

(5) Family members of the persons referred to in Paragraph four, Clauses 1 and 2 of this Section who have assumed the liabilities of the concluded residential tenancy agreement also have the right to reduction of the purchase price.

[28 November 1996; 11 June 1997; 7 May 1998; 26 October 2000; 19 September 2013]

Section 44. Reimbursement of a Lessee's Expenditure

(1) An acquirer of an object privatised at an auction in the cases specified in Section 17, Paragraph four, Section 18, Paragraphs three and four, Sections 23 and 24 of this Law shall reimburse the expenditure related to the maintenance and improvement of the object to the current lessee in accordance with the provisions of Sections 866-868 of the Civil Law.

(2) The privatisation commission shall, upon request of the lessee, determine the amount of the lessee's expenditure related to the maintenance and improvement of the object referred to in Paragraph one of this Section until the auction. The acquirer of the privatised object shall pay the abovementioned sum in money in addition to the price bid in the auction and it shall be disbursed to the current lessee.

[22 August 1996]

Section 45. Time Periods of Payment

(1) A privatisation object shall be redeemed by paying in property compensation certificates or other types of privatisation certificates and in conformity with the provisions of this Law. A purchaser has the right to redeem the privatisation object by paying also in euros.

(2) The payment procedures shall be determined by the Cabinet.

(3) Payments for the privatised object shall be transferred to the account of the authority specified by the Cabinet on the basis of the decision taken by the privatisation commission.

(4) A purchaser shall settle the payment for the privatised object within one month from the day when the privatisation commission has taken the decision to conclude a purchase contract, except for the case specified in Paragraph five of this Section.

(5) A natural person, in privatising an apartment, a single dwelling or undivided share thereof, or an apartment house or an artist's workshop, and also a natural or legal person, in privatising non-residential premises regarding the use of which he or she has concluded a lease contract, may pay the purchase price in parts in compliance with the provisions of Section 46 of this Law.

(6) A purchaser shall settle the payment for a privatisation object which has been offered for privatisation in a public auction to the persons who have property compensation certificates by paying only in property compensation certificates, except for the case specified in Paragraph seven of this Section.

(7) In making payment for non-residential premises or an artist's workshop, a purchaser shall settle 50 per cent of the purchase price in euros and 50 per cent in privatisation certificates. If non-residential premises have been offered for privatisation in a public auction to the persons who have property compensation certificates, a purchaser shall settle 50 per cent of the purchase price in euros and 50 per cent in property compensation certificates.

(8) If the payment or first deposit for a privatisation object is not made within the time periods specified in Paragraph four of this Section or Section 46, Paragraph two as well as within a month from the day of sending the warning, the privatisation commission shall revoke the decision to conclude the purchase contract.

(9) After the privatisation commission has revoked the decision to conclude the purchase contract in the cases referred to in Paragraph eight of this Section, the non-residential premises or artist's workshop to be privatised shall be offered for privatisation by public auction. The decision to offer the relevant non-residential premises or artist's workshop for privatisation by public auction shall be taken after the end of the time period for disputing or appealing the decision taken by the privatisation commission referred to in Paragraph eight of this Section or the legal dispute regarding the decision has been terminated.

[22 August 1996; 11 June 1997; 16 December 1999; 27 June 2002; 24 February 2005; 21 February 2008; 19 September 2013; 16 January 2014]

Section 46. Hire Purchase

(1) A purchaser may pay the purchase price by making regular payments within a time period of 5 years from the day of concluding a purchase contract.

(2) A purchaser shall make the first payment which is at least 30 per cent from the purchase price within a month from the day when the privatisation commission has taken the decision to conclude a purchase contract.

(3) For the provision of the purchase price, the pledge rights shall be granted in favour of the State or local government to the privatised objects in accordance with this Law. In corroborating ownership rights on the basis of a contract, pledge rights in favour of the State or local government shall be concurrently corroborated in the amount of the unpaid sum.

[22 August 1996; 11 June 1997; 16 December 1999; 26 October 2000]

Section 47. Transfer of an Apartment or Single Dwelling into Ownership Free of Charge

(1) If a house which has been the personal property of a natural person has been demolished due to alienation of the land parcel for the State or public needs and an apartment (apartments) from the State or public apartment fund has been granted to the abovementioned natural person and his or her family members who have permanently resided together in the demolished house as a compensation for the alienated property, the apartment (apartments) rented in a State or local government residential house or the single dwelling rented at the time of coming into force of this Law shall be transferred into ownership of the abovementioned person (persons) free of charge.

(2) Family members of the persons referred to in Paragraph one of this Section who have assumed the liabilities of the concluded residential tenancy agreement also have the right to acquire an apartment or a single dwelling into ownership free of charge.

(3) If the abovementioned person has submitted the privatisation application in accordance with the procedures specified in Section 32 of this Law, the privatisation commission shall, within two months from the day when the privatisation application has been received, enter into a written agreement with the person regarding transfer of an apartment or a single dwelling into ownership free of charge on the basis of a decision taken by the privatisation commission.

(4) It is compulsory to indicate the following in an agreement deed:

1) the name and address of the privatised object;

2) a precise description of the privatised object;

3) liabilities to be assumed and additional liabilities of the acquirer of the privatised object;

4) the conditions of the land use rights;

5) the restriction on the property;

6) the liability for the breach of contractual obligations.

(5) If a house which has been the personal property of a natural person has been demolished due to alienation of the land parcel for the State or public needs and an apartment (apartments) from the State or public apartment fund which, at the time of coming into effect of this Law, is (are) located in a house that has been denationalised or returned to former owners (or heirs thereof) or regarding return of which an application has been submitted has been granted to the abovementioned natural person and his or her family members who have permanently resided together in the demolished house as a compensation for the alienated property, the abovementioned person (persons) has (have) the rights to receive a local government apartment into ownership free of charge in accordance with the procedures specified by the Cabinet.

(6) If a natural person to whom land ownership rights have been restored has alienated the land parcel belonging to him or her from a local government free of charge and an apartment in a residential house of the relevant local government has been rented to the person, the apartment shall be transferred into ownership of the abovementioned natural person free of charge in accordance with the procedures specified by the relevant local government.

[22 August 1996; 28 November 1996; 11 June 1997; 7 May 1998]

Chapter X
Corroboration of Ownership Rights

Section 48. Corroboration of Ownership Rights of a Privatised Object

(1) Only such person shall be recognised as the owner of a privatised object who has been recorded as such in the Land Register. The privatised object shall be registered and the ownership rights shall be corroborated in the Land Register in accordance with the procedures specified in the Land Register Law and the law On the Entering of Immovable Property in Land Registers.

(2) Upon corroborating ownership rights to an apartment, the undivided share of a joint property shall be indicated concurrently.

(3) Upon corroborating ownership rights to privatised non-residential premises and artist's workshops, the procedures for corroborating ownership rights of privatised apartments shall be applied.

(4) Ownership rights shall be corroborated on the basis of the concluded purchase contract, except for the case referred to in Section 49 of this Law. Encumbrances, debts, and securities of rights recorded in the purchase contract shall be recorded in the Land Register as notes.

(5) If during privatisation of a residential house inaccuracies in the privatisation documents are detected in comparison with the records made in the Land Register, the privatisation commission of residential houses shall, until the transfer of the privatised residential house in the administration of apartment owners and on the basis of a statement of an immovable property evaluation service, take the decision regarding updating of entries regarding the undivided share of a joint property or other entries made in the Land Register.

[11 June 1997; 16 December 1999]

Section 49. Corroboration of Ownership Rights to Apartments or Single Dwellings Transferred into Ownership Free of Charge

If in accordance with Section 47 of this Law an agreement regarding transfer of an apartment or single dwelling into ownership free of charge has been entered into, the ownership rights shall be corroborated on the basis of the respective agreement.

Chapter XI
Administration of a Privatised Residential House

[26 October 2000]

Section 50. Obligations of the Owner of a Privatised Object

(1) An owner of a privatised object (hereinafter also - the apartment owner) has the obligation:

1) to comply with the conditions of the purchase contract or agreement;

2) to participate in the joint administration and management of the apartment house by joining with the other owners of the house in a society of apartment owners or by concluding a contract for the administration and management of a joint property in compliance with the laws and regulations in force;

3) to conclude a land lease contract or to authorise the administrator and manager of the residential house to conclude a land lease contract with the owner, a natural or legal person, of the land parcel on which the privatised object is located;

4) to comply with the lease or tenancy agreements concluded by the present possessor of the privatised object and the time periods thereof, except for the cases provided for by law.

(2) The provision of the services necessary for the maintenance of the privatised object and settlements for them shall occur in accordance with the relevant service contract. The service contract shall be concluded by the owner of the privatised object or the administrator and manager of the residential house authorised by the owner and the service provider in accordance with the procedures specified in the laws and regulations governing the relevant service. Regulations for the provision of the relevant service shall be the same for all the owners of the privatised objects in the residential house.

(3) Until the moment when a society of apartment owners or a person authorised by a mutual contract of apartment owners assumes the administration rights of a residential house with a delivery-acceptance deed, the apartment owners shall, according to the procedures specified by law and in agreement amongst themselves, determine:

1) the procedures for the administration and management of the residential house and the payments for this;

2) how the payment share of each apartment owner for the service received shall be specified, and also the procedures for the provision of services necessary for the maintenance of the joint property share belonging to him or her.

(4) If the apartment owners have not agreed upon that referred to in Paragraph three, Clause 1 of this Section, the Cabinet shall determine the procedures by which an administrator calculates the payment for the administration and management of the residential house, draws up an estimate of the work for the maintenance and management of the residential house, notifies the apartment owners of the amount of payment for a specific time period, informs the apartment owners about the costs provided for in the estimate for a specific time period, and also prepares for the apartment owners an annual accounting regarding the use of the relevant payments.

(5) If the apartment owners have not agreed upon that referred to in Paragraph three, Clause 2 of this Section, the Cabinet shall determine the criteria for the payment procedures for the heating, water supply, sewerage, waste collection, household waste management, and lift services necessary for the maintenance of the residential house in the cases when the services are provided through the intermediation of the administrator, on the basis of which the payment share for the received services is specified for each apartment owner, and also the procedures by which the apartment owners are informed about the conditions of the relevant contract.

(6) The provisions of Paragraphs one, two, three, four, and five of this Section shall also apply to the State and local government if they are apartment owners.

(7) A possessor of a State residential house or a local government shall be obliged to administer the residential house until transfer of the administration rights thereof to a society of apartment owners or a person authorised by a mutual contract of apartment owners unless all privatisation objects have been privatised in the residential house. The possessor of the State residential house or local government shall also be obliged to administer the residential house if all privatisation objects have been privatised in the residential house but the general meeting of apartment owners has not been convened in accordance with Section 51, Paragraph two of this Law.

(8) In administering and managing a residential house, unless the administration rights of the residential house have been transferred to a society of apartment owners or a person authorised by a mutual contract of apartment owners in accordance with the procedures laid down in Section 51 of this Law, the possessor of the State residential house or local government has the right to receive a payment for the service provided to the apartment owners in the administration and management of their private property.

[21 February 2008; 16 June 2010; 21 February 2013]

Section 51. Procedures by which the Administration Rights of Residential House are Transferred to the Society of Apartment Owners or the Person Authorised by the Mutual Contract of Apartment Owners

(1) In order to establish a society of apartment owners or to conclude a mutual contract for the administration and management of the joint property part of a residential house in accordance with the procedures specified in the Civil Law, a general meeting of apartment owners of the residential house shall be convened not later than within six months from the time when the decision to commence privatisation of the relevant residential house has been taken.

(2) A general meeting of apartment owners in an apartment house to be privatised and belonging to the State shall be convened by the possessor of the residential house, but in an apartment house to be privatised and belonging to a local government it shall be convened by the local government if, regardless of the setting in of the conditions referred to in Paragraph one of this Section, such society has not been established or a contract has not been concluded until the abovementioned time. A general meeting of apartment owners of the apartment house may also be convened by one or several apartment owners of the apartment house. All apartment owners of the apartment house shall be invited to the general meeting of apartment owners. An invitation to the general meeting shall be issued to the apartment owner or his or her family members in return for a signature.

(3) A local government or a possessor of a State residential house shall transfer the administration rights of the residential house to a society of apartment owners or a person authorised by the mutual contract of apartment owners in compliance with the conditions of Paragraph five of this Section if not less than half of all privatisation objects in the residential house are privatised.

(4) If less than half of all privatisation objects in the residential house are privatised, a local government or a possessor of State residential house may transfer the administration rights of the residential house to a society of apartment owners or a person authorised by the mutual contract of apartment owners in compliance with the conditions of Paragraph five of this Section.

(5) Administration rights of a residential house shall be transferred if a society of apartment owners or a person authorised by the mutual contract of apartment owners has submitted an application for taking over of the residential house and the following conditions are complied with:

1) the society of apartment owners has been established or the mutual contract of apartment owners has been concluded in accordance with the procedures specified in this Law and other laws;

2) a decision of a community of apartment owners of the residential house on the transfer of the administration and management duties of the joint property part of the residential house to the relevant society of apartment owners or the person authorised by the mutual contract of apartment owners, and also a residential house administration contract have been submitted;

3) all participants of the society of apartment owners or apartment owners who have concluded a mutual contract have concluded the purchase contract provided for in Section 41 of this Law with the privatisation commission;

4) participants of the society of apartment owners or also apartment owners who have concluded a mutual contract represent more than half of the number of privatisation objects in the residential house. This provision shall not apply to the case referred to in Paragraph four of this Section.

(5¹) If only one apartment property has been privatised in a residential house and the owner of this apartment has submitted an application for taking over of the residential house, a local government or a possessor of a State residential house may transfer the administration rights of the residential house to this apartment owner by agreeing with him or her on the procedures for the future administration and management of non-privatised objects of the residential house.

(6) A local government or a possessor of a State residential house shall transfer the administration rights of the residential house to a society of apartment owners or a person authorised by the mutual contract of apartment owners not later than within one month from the day when all the conditions referred to in Paragraph five of this Section have been fulfilled. Administration rights of a residential house shall be transferred by signing a delivery-acceptance deed of the residential house.

(7) If at least half of all privatisation objects in a residential house are privatised but not all the conditions of Paragraph five, Clause 4 of this Section have been fulfilled, a local government or a possessor of the State residential house, in taking a respective decision, may transfer the administration rights of the residential house to a society of apartment owners or a person authorised by the mutual contract of apartment owners.

(8) If all privatisation objects in an apartment house have not been privatised at the time of the transfer of the administration rights thereof, a local government or a possessor of the State residential house shall agree with a society of apartment owners or a person authorised by the mutual contract of apartment owners on the procedures for the future administration and management of non-privatised objects of the residential house.

[27 June 2002; 28 January 2010; 16 June 2010; 21 February 2013]

Section 51.¹ Decision-Making Procedure of Apartment Owners without Convening a General Meeting of Apartment Owners

(1) If the conditions referred to in Section 51, Paragraph two of this Law have been fulfilled but apartment owners have not taken the decision to transfer the administration rights of the residential house to a society of apartment owners or a person authorised by a mutual contract of apartment owners and have failed to conclude a contract for the administration and management of the joint property part of the residential house, a local government, a possessor of the State residential house, or one or several apartment owners (hereinafter - the initiator) have the right to commence a decision-making procedure of apartment owners without convening a general meeting of apartment owners (hereinafter - the decision-making procedure).

(2) Within the scope of the decision-making procedure, the initiator shall send in a registered letter or issue in return for a signature to each apartment owner an invitation to take the decision to transfer the administration rights of the residential house and to transfer such rights to a person authorised by a mutual contract of apartment owners by voting for or against the taking of the decision (hereinafter - the invitation). The invitation shall be accompanied by the following documents:

1) a draft decision to transfer the administration rights to the person authorised by apartment owners. The decision to be taken shall be worded clearly and unambiguously;

2) a draft residential house administration contract;

3) a ballot paper form providing also for a possibility to express a dissenting opinion of an apartment owner;

4) any other documents which may be relevant to the taking of the decision.

(3) The invitation shall specify the time period within which an apartment owner may vote, in writing, for or against the taking of the decision. This time period may not be shorter than two weeks from the day the invitation is sent. If the apartment owner has failed to provide a written response within the specified time period, it shall be considered that he or she has voted against the taking of the decision.

(4) The draft residential house administration contract shall include the information to be indicated in an administration contract and the conditions laid down in the Law on Administration of Residential Houses.

(5) In compliance with the provisions of Paragraphs one and two of this Section, the initiator shall, within the scope of the decision-making procedure, draw up a written report on voting results and send it to all apartment owners within five working days. The voting report shall indicate the following:

1) the day of sending the invitation and the time period for voting specified for apartment owners;

2) the decision taken and the voting results related thereto;

3) the dissenting opinions of apartment owners indicated in ballot papers;

4) any other information relevant to the vote.

(6) The decision to transfer the administration rights of a residential house to the person authorised by apartment owners which has been taken within the scope of the decision-making procedure shall be considered taken if apartment owners who represent more than half of the number of privatisation objects in the residential house have voted for it.

(7) The initiator shall specify the draft contract according to the voting results and prepare it for signing. The administration contract shall be concluded for a period not exceeding three years.

[16 July 2009; 21 February 2013]

Section 51.² Transfer of the Administration Rights of a Residential House if All Privatisation Objects Have been Privatised in the Residential House

(1) A possessor of a State residential house or a local government in a local government residential house shall convene a general meeting of apartment owners and inform apartment owners of the obligation to sign a delivery-acceptance deed of the residential house within six months from the day of convening the general meeting in the following cases:

1) all privatisation objects in the residential house have been privatised in accordance with the procedures laid down in this Law;

2) the possessor of the State residential house or the local government has fulfilled the obligation specified in Section 51, Paragraph two of this Law;

3) the application for taking over of the residential house has not been submitted in accordance with the provisions of Section 51, Paragraph five of this Law.

(2) After convening the general meeting of apartment owners referred to in Paragraph one of this Section, the possessor of the State residential house or the local government shall inform such service providers whose services provided are related to the use of the apartment property of the fact that, upon expiry of the time period referred to in Paragraph one of this Section, the obligation of the possessor of the State residential property or the local government to administer the residential house also terminates.

(3) If the person authorised by apartment owners fails to sign the delivery-acceptance deed of the residential house within the time period specified in Paragraph one of this Section, the possessor of the State residential house or the local government shall continue keeping of the file of the relevant residential house. The house file as well as a revenue and expenditure account, unused savings (property, financial resources, including money) shall be transferred to apartment owners after signing of the delivery-acceptance deed of the residential house.

[21 February 2013]

Section 52. Actions Involving a Privatised Object

Actions involving a privatised object, restrictions on the use thereof, and also the administration and management procedures shall be governed by other laws and Cabinet regulations.

Section 53. Rights of Use and Redemption of the Land Parcel Owned by the State or Local Government

(1) The lease rights of the land parcel owned by the State or local government on which a residential house has been built shall be acquired for 99 years by the owner of a privatised apartment, non-residential premises, an artist's workshop, a single dwelling, or an apartment house in accordance with Section 7, Paragraphs one, three, and seven of this Law.

(2) The land lease rights acquired for 99 years may be sold, changed or otherwise alienated if a privatised apartment, non-residential premises, artist's workshop, single dwelling or apartment house is being sold, changed or otherwise alienated without application of the provisions of Section 2115 of the Civil Law.

(3) If a residential house is demolished, a lessee of the land parcel who has acquired the land in lease for 99 years shall continue to have the lease rights and the rights specified in Paragraph two of this Section.

(4) A person who has acquired lease rights of the land parcel for 99 years as a result of privatisation shall acquire the leased land parcel into ownership without additional payment if the conditions provided for in this Law and other laws in respect of obtaining land into ownership have been fulfilled by submitting a request of corroboration to a district (city) court.

(5) A land lease contract shall be concluded for the use of the land parcel transferred for lease for 99 years in compliance with the conditions of this Section. Lease payment in accordance with this contract may not exceed the amount of the land tax.

[19 June 2014; 13 June 2019]

Section 54. Rights and Obligations of the Owner of the Land Parcel

(1) The owner of the land parcel has the obligation to conclude a land lease contract with the owner of the privatised object. The land lease contract shall be concluded for the use of the land parcel which has been determined by the local government council or an authorised authority thereof or by the authority carrying out privatisation of State residential houses as the land parcel that is functionally necessary for the residential house.

(2) A lease payment of the land parcel shall be determined upon agreement of the parties in writing.

(3) If the owner of the land parcel sells the land parcel on which the privatisation object is located, the owner (owners) of the privatised object has the right of first refusal thereto.

(4) If in accordance with the requirements of Section 50, Paragraph one, Clause 3 of this Law the land lease contracts with the owner of the land parcel have not been concluded, the owner of the land parcel has the right to direct a claim to the court regarding concluding a land lease contract against the person to whom the administration and management rights of the respective residential house have been transferred.

[18 May 2006; judgement of the Constitutional Court of 15 April 2009; 22 October 2009; 19 June 2014; 1 June 2017; judgement of the Constitutional Court of 12 April 2018; 13 June 2019]

Chapter XII
Social Guarantees of a Tenant and Lessee in Privatised Objects

Section 55. Protection of the Rights of Apartment Tenants

(1) The change of an owner of an apartment or residential house may not be the grounds for eviction of a tenant and his or her family members from the apartment.

(2) A person who, in accordance with Section 13, Paragraph four, Section 14, Paragraph five, Section 19, Paragraph four and Section 20, Paragraph five of this Law, has privatised an apartment rented by a tenant may evict the tenant and his or her family members from the rented apartment only in such case if the eviction is provided for in an agreement previously entered into by the person who has privatised the apartment and the tenant and his or her family members.

Section 56. Protection of the Rights of Lessees of Non-residential Premises and Artist's Workshops

The owner of privatised non-residential premises or an artist's workshop may not request early termination of a lease contract concluded by the current lessor within a time period of three years after recording of the privatised property in the Land Register if the lessee duly fulfils his or her liabilities.

Chapter XIII
Supervision of the Privatisation Commission and Privatisation

Section 57. Privatisation Commissions

(1) Privatisation commissions shall constitute privatisation commissions of local government residential houses and the authority carrying out privatisation of State residential houses.

(2) Activities of the privatisation commissions of local government residential houses shall be governed by this Law and the by-laws approved by the respective local government council which have been developed in accordance with the standard by-laws approved by the Cabinet.

[11 June 1997; 20 November 2003; 21 February 2008; 12 June 2009; 13 June 2019; 17 June 2021]

Section 58. Authority Carrying out Privatisation of State Residential Houses

(1) The authority carrying out privatisation of State residential houses shall perform privatisation of State residential houses and also other tasks specified in this Law and other laws and regulations.

(2) The authority carrying out privatisation of State residential houses shall be under functional supervision of the Ministry of Economics when fulfilling the tasks referred to in Paragraph one of this Section.

(3) The actual actions and the administrative acts adopted by the authority carrying out privatisation of State residential houses may be appealed by a private person to court.

[12 June 2009; 13 June 2019]

Section 59. Competence of the Authority Carrying out Privatisation of State Residential Houses

(1) The authority carrying out privatisation of State residential houses shall be obliged to do the following:

1) provide consultations on the matters within its competence free of charge;

2) carry out the privatisation activities of State residential houses and apartments, artist's workshops, and non-residential premises existing therein that have been specified in this Law;

3) coordinate transfer of State residential houses and parts thereof to local governments;

4) transfer non-privatised apartments, artist's workshops, non-residential premises in State residential houses and non-privatised State residential houses to local governments;

5) administer the State residential houses and parts thereof in their possession until the transfer of such residential houses and parts thereof into the administration and management of apartment owners in accordance with the provisions of the Civil Law and other laws;

6) transfer State residential houses into the administration and management of apartment owners;

7) store information on privatisation of residential houses and ensure that it is available to local governments and other State and local government authorities upon request.

(2) The authority carrying out privatisation of State residential houses has the following rights:

1) to request and receive information related to privatisation from the privatisation commissions of local government residential houses, State and local government institutions, and also from capital companies;

2) to perform any other functions provided for in this Law or Cabinet regulations;

3) to participate in the organisation of administration and management of privatised residential houses;

4) to provide paid services within its competence;

5) to request and receive free-of-charge information from State information systems which is necessary for ensuring the privatisation process of residential houses.

[16 June 2010; 13 June 2019; 13 June 2019; 17 June 2021]

Section 60. Privatisation Commissions of Local Government Residential Houses

(1) A relevant local government council shall establish a privatisation commission of local government residential houses composed of five members and shall appoint the chairperson thereof.

(2) The privatisation commission of local government residential houses shall organise privatisation of State and local government residential houses located in the administrative territory of the relevant local government.

(3) Activity of the privatisation commission of local government residential houses shall be financed from the budget of the relevant local government.

[17 June 2021]

Section 61. Functions of Privatisation Commissions of Local Government Residential Houses

(1) Privatisation commissions of local government residential houses shall independently, and also with the assistance of invited experts, organise the privatisation of objects in accordance with this Law and other laws and regulations governing the procedures for the privatisation of such objects.

(2) Privatisation commissions of local government residential houses shall take decisions and act independently in so far as activities thereof are not governed by this Law or other laws and regulations.

(3) Privatisation commissions of local government residential houses shall, once a quarter, provide a report to the authority carrying out privatisation of State residential houses regarding the course of privatisation.

[20 November 2003; 21 February 2008; 12 June 2009; 13 June 2019; 17 June 2021]

Section 62. Distribution of Responsibilities among the Members of Privatisation Commissions of Local Government Residential Houses

(1) Privatisation commissions of local government residential houses shall perform their activities collegially, they are entitled to take decisions if at least half of the members of the commission participate in a meeting.

(2) Privatisation commissions of local government residential houses shall take decisions by a majority vote of members of the commission by open vote. If alternative decisions receive an equal number of votes, a decision of the commission shall be taken in the wording for which the chairperson of the commission has voted, but in his or her absence - the vice-chairperson of the commission.

(3) Minutes shall be taken of meetings of the privatisation commissions of local government residential houses. If disagreements regarding the content of a decision of the commission or the procedures for execution thereof arise, the decision shall be valid in such wording in which it has been recorded in the minutes of the meeting. A member of the commission who does not agree with the decision of the commission has the right to append his or her dissenting opinion to the minutes in writing.

(4) Privatisation commissions of local government residential houses shall determine independently the functions of the members of commissions and distribution of their responsibilities within the competence thereof.

[20 November 2003; 17 June 2021]

Section 63. Rights of the Chairperson of a Privatisation Commission of Local Government Residential Houses

(1) The chairperson of a privatisation commission of local government residential houses but in his or her absence the vice-chairperson of the commission is entitled to suspend execution of a decision by an independently taken decision, immediately notifying members of the commission and direct executors of the respective decision if he or she may justify that the respective decision of the commission is illegal.

(2) If, after having re-examined the respective decision on the merits within one week after suspension thereof, the privatisation commission of local government residential houses recognises that the decision of the chairperson of the commission to suspend the decision of the commission is illegal, it shall take a repeated final decision of the commission.

[20 November 2003; 17 June 2021]

Section 64. Supervision of a Local Government over the Activities of the Privatisation Commission of Residential Houses

(1) A local government has the right to control and supervise the lawfulness of the activities of the privatisation commission of residential houses and the chairperson of the commission appointed by it.

(2) A local government council has the following rights:

1) to repeal or amend illegal decisions of the privatisation commission of residential houses or to suspend illegal activities of the commission;

2) to remove the privatisation commission of residential houses or the chairperson thereof if laws or Cabinet regulations are not complied with repeatedly or are violated.

(3) [20 November 2003]

[7 May 1998; 20 November 2003]

Section 65. Legal Regulation of the Activities of the Privatisation Commissions of Residential Houses

Other provisions for the activities of privatisation commissions of local government residential houses shall be governed by Cabinet regulations.

[17 June 2021]

Chapter XIV
Resources Obtained as a Result of Privatisation

Section 66. Payment for Technical Execution of Privatisation of Residential House and Taxes (Fees)

(1) All persons shall settle payments for the technical execution of privatisation of a residential house as well as for services related to privatisation of the residential house in accordance with the procedures and amounts specified by the Cabinet. Persons who have acquired an apartment, artist's workshop, or non-residential premises into ownership until privatisation of the residential house shall be released from payment for the technical execution of privatisation as well as for the services related to privatisation of the residential house.

(2) Natural persons shall settle payments for the technical execution of privatisation of a residential house as well as for the services related to privatisation of the residential house in privatisation certificates and legal persons in euros.

(3) Transactions (contracts, agreements) which are entered into by and between the privatisation commission and purchasers of privatisation objects, payments related to privatisation of privatisation objects at a public auction, and also the transfer of privatisation objects to the new owners shall be exempted from all taxes and fees specified by the State and local governments.

[28 November 1996; 11 June 1997; 24 February 2005; 19 September 2013]

Section 67. Use of the Resources Obtained as a Result of the Privatisation of Residential Houses

(1) Resources obtained as a result of the privatisation of State and local government residential houses in euros shall be credited to the budget of the relevant local government in the amount of 60 per cent. Income from the privatisation of residential houses which has been credited to the local government budget may be used for the organisational and legal security of the privatisation process of local government residential houses.

(2) Resources obtained as a result of the privatisation of State and local government residential houses in euros shall be credited to the State budget in the amount of 40 per cent. Income from the privatisation of residential houses which has been credited to the State budget shall be used for the payment and refinancing of the national debt.

(3) Resources which have been obtained in privatising unrented apartments in the cases specified in Section 15, Paragraph eight, Section 21, Paragraph eight, and Section 73.³, Paragraph five of this Law shall be transferred into the income of the relevant local government.

(4) All resources which are obtained in privatising unrented apartments belonging to the State in accordance with the procedures specified in Section 15, Paragraph eight, Section 21, Paragraph eight, and Section 73.³, Paragraph five of this Law shall, after covering of the expenditure related to organisation of auctions, be transferred to the account indicated by the Ministry of Finance in the Treasury and shall be used for payment and refinancing of the national debt.

(5) From resources which have been credited to the State basic budget in accordance with the annual State budget law, the authority carrying out privatisation of State residential houses shall receive a grant from general revenues and use it for the following:

1) financing of the privatisation process of residential houses;

2) maintenance of residential houses during the privatisation process thereof;

3) organisation of maintenance and management of privatised residential houses;

4) performance of the functions specified in Section 59 of this Law.

(6) Expenditure which have been incurred by the authority specified by the Cabinet in relation to the performance of the tasks specified in Section 45, Paragraph three, Section 73.³, Paragraph nine, and Section 73.⁴, Paragraph six of this Law shall be covered, in accordance with the procedures laid down by the Cabinet, from resources of the reserve fund established on the basis of the law On Privatisation of State and Local Government Property Objects.

[7 May 1998; 26 October 2000; 5 July 2001; 27 June 2002; 30 October 2003; 7 April 2004; 21 February 2008; 12 June 2009; 19 September 2013; 16 January 2014; 13 June 2019]

Chapter XV
Procedures for Examination of Complaints and Disputes

Section 68. Competence of a Local Government Council in the Examination of Disputes

(1) A local government council shall examine any disputes related to the technical execution of privatisation of apartments, non-residential premises, artist's workshops, single dwellings, and apartment houses, namely related to the following:

1) specification of the value of the privatisation object;

2) specification of the area of the land parcel to be transferred into lease or to be privatised;

3) specification of the purchase price of the privatisation object.

(2) A local government council shall examine the disputes referred to in Paragraph one of this Section in accordance with the provisions of Sections 69, 70, and 71 of this Law.

[17 June 2021]

Section 69. Procedures for the Examination of Disputes in a Local Government Council

(1) If a decision of the privatisation commission on the technical execution of privatisation of the relevant object is contested in accordance with the procedures laid down in this Law, the execution thereof shall be suspended until examination of the submitted complaint. Upon receipt of a complaint about the technical execution of privatisation of the object, the local government council shall notify the privatisation commission whose decision is appealed of this fact.

(2) The local government council shall examine the disputes referred to in Paragraph one of this Section upon receipt of an application of one party.

(3) The local government council shall invite both parties concerned to the examination of the disputes referred to in Paragraph one of this Section, and they shall be examined within one month. If the parties to whom the date of examination of a dispute has been notified in writing do not appear, it shall not be an impediment to the examination of the dispute.

[7 April 2004]

Section 70. Decisions of a Local Government Council on Disputes Related to the Technical Execution of Privatisation of Privatisation Objects

(1) A local government council shall indicate in its decision on a dispute, which is related to the technical execution of privatisation of an apartment, non-residential premises, an artist's workshop, a single dwelling or an undivided share thereof, or an apartment house, the procedures for execution of the decision and the measures to be performed for the elimination of detected violations.

(2) If decisions of a local government council in relation to the technical execution of privatisation of the object are not appealed within the time period specified in Section 71, Clause 7 of this Law, they shall be compulsory to the parties concerned, State authorities, local governments, and officials as well as natural and legal persons.

[16 December 1999]

Section 71. Rights and Obligations of the Parties Concerned and Representatives Thereof

If a dispute regarding the technical execution of privatisation of the object is examined by a local government council, the parties concerned and representatives thereof have the following rights and obligations:

1) to acquaint themselves with the materials prepared for examination of the relevant dispute and make extracts from these;

2) to participate in examination of the dispute, submit documents and other evidence;

3) to express requests;

4) to provide oral explanations and written explanations;

5) to object against the requests, supporting arguments, and considerations of the other party;

6) to request and receive a true copy of the decision taken;

7) to appeal the decision of the local government council to the court within one month after it has been notified to the parties concerned.

Section 72. Court Jurisdiction in Examining Disputes Related to the Privatisation of Residential Houses

(1) The following disputes related to the privatisation of residential houses shall be within the jurisdiction of a court:

1) disputes regarding violation of the auction provisions of apartments, non-residential premises, artist's workshops, single dwelling or undivided share thereof, and apartment houses;

2) disputes regarding the rights of the privatisation subject and regarding the priority rights to privatise an object;

3) disputes which are related to the conclusion, fulfilment, amendment or revocation of a purchase contract;

4) disputes regarding transfer of an apartment or a single dwelling or undivided share thereof into ownership free of charge;

5) disputes which are related to the corroboration of the ownership rights of the privatised object in the Land Register;

6) disputes which are related to the technical execution of privatisation of State residential houses as well as apartments, artist's workshops or non-residential premises in a State residential house, i.e. related to specification of the value of the privatisation object, specification of the area of the land parcel to be transferred into lease or to be privatised, and specification of the purchase price of the privatisation object;

7) any other disputes which arise during the privatisation process of residential houses and the examination of which is not within the competence of a local government council.

(2) A court shall examine the disputes referred to in Section 68 of this Law after a local government council has taken the decision on them in accordance with the procedures laid down in this Law.

[11 June 1997; 16 December 1999; 18 May 2006]

Section 73. Recognition of the Privatisation of Apartments, Non-residential Premises, Artist's Workshops, Single Dwellings or Undivided Shares Thereof, and Apartment Houses as Illegal

Privatisation of apartments, non-residential premises, artist's workshops, single dwellings or undivided shares thereof, and apartment houses shall be recognised as illegal if:

1) an apartment, non-residential premises, artist's workshop, single dwelling or undivided share thereof, or apartment house is offered for privatisation without complying with the sequence and the procedures for privatisation specified in this Law;

2) a person has privatised the rented apartment or single dwelling or undivided share thereof without notifying family members about it;

3) other requirements of this Law or Cabinet regulations issued on the basis of this Law are not complied with.

[16 December 1999]

Chapter XV.¹
Transfer of Apartments, Artist's Workshops, and Non-residential Premises into Ownership until Privatisation of a Residential House

[11 June 1997]

Section 73.¹ Cases where the Transfer of Apartments, Artist's Workshops, and Non-residential Premises into Ownership until Privatisation of a Residential House shall be Applicable

(1) Provisions of this Chapter shall be applicable to the cases where the authority carrying out privatisation of State residential houses or a local government has not commenced the privatisation of a residential house in accordance with the procedures laid down in this Law and the following persons residing in a State or local government single dwelling or apartment house wish to perform the following activities:

1) apartment owners, family members thereof or other persons indicated in this Law wish to acquire the apartment rented by them into ownership;

2) lessees of artist's workshops who are artists in accordance with the requirements of Section 1, Clause 19 of this Law wish to acquire the artist's workshop leased by them into ownership;

3) lessees of non-residential premises wish to acquire the non-residential premises leased by them into ownership.

(2) Provisions of this Chapter shall be applicable in relation to the non-privatised apartments that are under the supervision of the State or local government in the apartment houses in which the apartments have been privatised in accordance with the law On Privatisation of Agricultural Undertakings and Collective Fisheries or the law On Privatisation of Co-operative Apartments.

(3) Provisions of this Chapter shall not be applicable to the residential houses which are located in the territory of free economic zones and special economic zones.

(4) Apartments, artist's workshops, and non-residential premises that are located in the single dwellings or apartment houses which were nationalised or otherwise illegally alienated after 21 July 1940 and regarding which applications of former owners or their heirs for the return thereof have been received may be transferred into ownership until privatisation of the residential house only after examination of the applications in accordance with the procedures specified in the law.

(5) After commencement of privatisation of a residential house, the apartments, artist's workshops, and non-residential premises which have been transferred into ownership until privatisation of the residential house shall be privatised in accordance with the procedures specified in this Law.

(6) Provisions of this Chapter shall not be applicable to the buildings belonging to the State or local government which do not have the status of a residential house.

[7 May 1998; 26 October 2000; 14 December 2000; 5 July 2001; 20 November 2003; 21 February 2008; 12 June 2009; 13 June 2019]

Section 73.² Institutions which Transfer an Apartment, Artist's Workshop, and Non-residential Premises into Ownership until Privatisation of the Residential House

The authority carrying out privatisation of State residential houses shall transfer the rented apartment, a leased artist's workshop, and non-residential premises in a State single dwelling or apartment house into ownership until privatisation of the residential house, and a privatisation commission of local government residential houses - the rented apartment, a leased artist's workshop, and non-residential premises in a single dwelling or apartment house of the local government.

[5 July 2001; 20 November 2003; 21 February 2008; 12 June 2009; 13 June 2019]

Section 73.³ Procedures by which Apartments shall be Transferred into Ownership until Privatisation of the Residential House

(1) In order to obtain ownership rights to an apartment until privatisation of the residential house, the tenant of the apartment and his or her family members shall submit an application to the privatisation commission.

(2) The privatisation commission shall take the decision to transfer the apartment into ownership until privatisation of the residential house within one month from the day of receipt of the application.

(3) The decision to transfer the apartment into ownership until privatisation of the residential house shall be taken if:

1) the tenant of the apartment and his or her family members enter into an agreement which is notarised or certified by a privatisation commission regarding which one of them will privatise the rented apartment;

2) a claim regarding termination of the tenancy agreement and eviction of the tenant and his or her family members has not been brought to the court.

(4) If the tenant of an apartment and his or her family members do not wish to acquire the rented apartment into ownership until privatisation of the residential house, the person indicated in Section 6 of this Law may privatise the rented apartment with the consent of the tenant and his or her family members. In such case the tenant of the apartment and his or her family members shall enter into an agreement which is notarised or certified by a privatisation commission with the person who wishes to acquire the apartment rented by the tenant into ownership.

(5) An unrented State or local government apartment may be transferred into ownership until privatisation of the residential house by a decision of a local government council or the authority carrying out privatisation of State residential houses in compliance with the provisions of Section 15 or 21, and also Sections 36, 37, 38, and 39 of this Law.

(6) [24 February 2005]

(7) The privatisation commission shall, within two weeks after taking the decision, send a notification to the tenant indicating therein the payment for the transfer of an apartment into ownership until privatisation of a residential house specified in the decision as well the procedures for making the indicated payment.

(8) A communal apartment shall be privatised as one single object. In order for the tenants of the communal apartment to acquire their rented communal apartment into ownership until privatisation of a residential house, they shall have to enter into an agreement which is notarised or certified by a privatisation commission regarding which one of them will privatise the apartment. If tenants of the apartment wish to privatise the apartment as a joint property, the subsequent procedures for the use of residential premises shall be provided for in the abovementioned deed of agreement.

(9) The tenant shall make a payment for the transfer of an apartment into ownership until privatisation of a residential house into the account of the authority specified by the Cabinet within one month from the day of giving the notification.

(10) If the payment for the transfer of the apartment into ownership until privatisation of the residential house is not made within the time period specified in Paragraph nine of this Section, and also within one month from the day of sending the warning, the privatisation commission shall revoke the decision to transfer the apartment into ownership until privatisation of the residential house.

[7 May 1998; 20 November 2003; 24 February 2005; 21 February 2008; 12 June 2009; 16 January 2014; 13 June 2019]

Section 73.⁴ Procedures by which Non-residential Premises or an Artist's Workshop shall be Transferred into Ownership until Privatisation of the Residential House

(1) In order to obtain ownership rights to the non-residential premises or artist's workshop until privatisation of a residential house, the lessee of non-residential premises or an artist's workshop shall, in accordance with the procedures specified in this Law, submit to the privatisation commission an application for the evaluation of the non-residential premises or artist's workshop and a lease contract of the non-residential premises or artist's workshop. Evaluation of the non-residential premises or artist's workshop shall be performed in accordance with the provisions of Section 27 of this Law.

(2) The privatisation commission shall evaluate the non-residential premises or artist's workshop within one month from the day of receipt of the application if the lessee has paid the fee for evaluation of the non-residential premises or artist's workshop. Non-residential premises or artist's workshop shall be evaluated in accordance with the procedures determined by the Cabinet.

(3) The privatisation commission shall determine the purchase price of the non-residential premises or artist's workshop within one month from the day of evaluation of the non-residential premises or artist's workshop, notifying the lessee about the decision taken.

(4) The lessee shall, within one month after receipt of the notification, submit to the privatisation commission either a confirmation of privatisation of the non-residential premises or artist's workshop for the specified purchase price, indicating the procedures for making payments and submitting documents confirming that the conditions referred to in Section 17, Paragraph two or Section 18, Paragraph two have been fulfilled, or a refusal of privatisation of the non-residential premises or artist's workshop. In case of refusal the lessee shall keep the right to privatise his or her leased non-residential premises or artist's workshop in accordance with the procedures specified in this Law. If the lessee submits the confirmation of privatisation of non-residential premises or an artist's workshop and of the specified purchase price later than within one month, the respective non-residential premises or artist's workshop shall be re-evaluated, except for the cases when the lessee has contested the purchase price determined by the privatisation commission in accordance with the specified time periods and the procedures.

(5) The privatisation commission shall take the decision to transfer non-residential premises or an artist's workshop into ownership until privatisation of the residential house within one month from the day of receipt of approval of the lessee and shall notify the lessee about it.

(6) The lessee shall make the payment or the first deposit for the transfer of non-residential premises or an artist's workshop into ownership until privatisation of the residential house into the account of the authority specified by the Cabinet within one month from the day of giving the notification.

(7) If the payment or the first deposit for the transfer of non-residential premises or an artist's workshop into ownership until privatisation of the residential house is not made within the time period specified in Paragraph six of this Section, and also within one month from the day of sending the warning, the privatisation commission shall revoke the decision to transfer the non-residential premises or artist's workshop into ownership until privatisation of the residential house.

[24 February 2005; 21 February 2008; 16 January 2014]

Section 73.⁵ Payment for the Transfer of an Apartment into Ownership until Privatisation of the Residential House

(1) The payment for the transfer of an apartment into ownership until privatisation of the residential house shall consist of the payment for the apartment which has been determined in privatisation certificates and the payment for the preparation of the residential house for privatisation which has been determined in euros. If the apartment is transferred into ownership until privatisation of the residential house, the tenant shall not have to pay the payment specified in privatisation certificates for the apartment in the cases specified in Section 47, Paragraphs one, two, five, and six of this Law.

(2) The procedures and amounts in which the payment for the transfer of an apartment into ownership until privatisation of the residential house is to be determined shall be determined by the Cabinet in conformity with the provisions of Section 43, Paragraph four of this Law.

(3) Resources that have been acquired in transferring apartments into ownership until privatisation of residential houses shall be used in accordance with the procedures specified in Section 67 of this Law.

[7 May 1998; 30 October 2003; 24 February 2005; 19 September 2013]

Section 73.⁶ Payment for the Transfer of Non-residential premises or an Artist's Workshop into Ownership until Privatisation of the Residential House

(1) Payment for the transfer of non-residential premises or an artist's workshop into ownership until privatisation of the residential house and the payment procedures shall be determined by the Cabinet in compliance with the provisions of Sections 45 and 46 of this Law.

(2) Payment for the transfer of non-residential premises or an artist's workshop into ownership until privatisation of the residential house shall consist of:

1) the purchase price in accordance with the procedures specified in Section 43 of this Law;

2) the payment for preparation of the residential house for privatisation;

3) the payment for evaluation of the non-residential premises or artist's workshop.

(3) A lessee of non-residential premises or an artist's workshop may pay the purchase price in instalments by making regular payments within a time period not exceeding five years.

(4) Pledge rights in favour of the State or local government to non-residential premises or artist's workshop which has been transferred into ownership until privatisation of the residential house shall be granted by this Law to ensure the purchase price. In registering non-residential premises or an artist's workshop in the Cadastre Register of the State Land Service (hereinafter - the Cadastre Register), pledge rights in favour of the State or local government shall be concurrently corroborated in the amount of the unpaid sum.

(5) Resources which have been obtained in transferring the non-residential premises or artist's workshop into ownership until privatisation of the residential house shall be used in accordance with the procedures laid down in Section 67 of this Law, except for the payment for evaluation of the non-residential premises or artist's workshop that shall be transferred by the lessee to the account indicated by the relevant privatisation commission.

[30 October 2003; 24 February 2005]

Section 73.⁷ Certificate Regarding Ownership Rights to an Apartment, Artist's Workshop, or Non-residential Premises until Privatisation of the Residential House

(1) On the basis of a decision taken by the privatisation commission and a document confirming that a payment for the transfer of an apartment into ownership until privatisation of the residential house has been made, the State Land Service shall issue a certificate to a tenant regarding ownership rights to the apartment until privatisation of the residential house.

(2) The State Land Service shall issue a certificate regarding ownership rights to non-residential premises or an artist's workshop until privatisation of the residential house to a lessee of the non-residential premises or artist's workshop on the basis of a decision taken by the privatisation commission, a document confirming that the lessee has made a payment or the first deposit for the transfer of the non-residential premises or artist's workshop into ownership until privatisation of the residential house, and a pledge contract if such has been concluded in favour of the State or local government.

(3) The State Land Service shall issue a certificate regarding ownership rights to an apartment, non-residential premises or artist's workshop until privatisation of the residential house within two weeks from the day of submission of the documents referred to in Paragraph one or two of this Section.

[24 February 2005]

Section 73.⁸ Registration of an Apartment, Artist's Workshop, Non-residential Premises, and Owners Thereof

(1) An apartment, artist's workshop, non-residential premises, and owners thereof until privatisation of the residential house shall be registered in the Cadastre Register. The pledge rights which have been established for an apartment property and other encumbrances on the apartment property shall also be registered in the Cadastre Register. Registration in the Cadastre Register in relation to legal effects shall be comparable to registration in the Land Register.

(2) The State Land Service shall, at least once a month, notify the authority carrying out privatisation of State residential houses and relevant local governments of the registered apartments, artist's workshops, non-residential premises, and owners thereof.

[7 May 1998; 20 November 2003; 21 February 2008; 12 June 2009; 13 June 2019]

Section 73.⁹ Actions Involving an Apartment, Artist's Workshop, and Non-residential Premises Transferred into Ownership until Privatisation of the Residential House

(1) A person who has acquired an apartment, artist's workshop, or non-residential premises into ownership until privatisation of the residential house shall be recognised as an owner from the moment when the apartment, artist's workshop, non-residential premises, and owners thereof have been registered in the Cadastre Register.

(2) An owner of an apartment, artist's workshop, or non-residential premises and the respective State authority or local government shall have to conclude a mutual contract on the maintenance and management of a residential house not later than within one month from the moment when a certificate regarding ownership rights to the apartment, artist's workshop, or non-residential premises until privatisation of the residential house has been issued.

(3) Anyone who has acquired an apartment, artist's workshop, or non-residential premises into ownership as a result of entering into a transaction or inheritance shall be recognised as the owner of the apartment, artist's workshop, or non-residential premises if he or she is registered in the Cadastre Register.

(4) If an apartment, artist's workshop, or non-residential premises have been acquired as a result of entering into a transaction or inheritance, the acquirer shall register the abovementioned property in the Cadastre Register until privatisation of the residential house after a contract has been concluded with the respective State authority or local government on the participation in the maintenance and management of the residential house. The contract shall be concluded until privatisation of the residential house in accordance with the procedures specified in this Law. The State authority or local government and the owner of the apartment, artist's workshop, or non-residential premises shall conclude the contract on the maintenance and management of the residential house within one month from the day of entering into the transaction or taking of inheritance.

(5) Payment for the maintenance and management of a residential house shall be determined for the owner of an apartment, artist's workshop, or non-residential premises in compliance with the Cabinet regulations regarding the procedures for calculating the rental payment of an apartment, and it shall not exceed the amounts of rental payment in the relevant house.

(6) The rights, obligations, and liability of the owner of an apartment, artist's workshop, or non-residential premises, and also the status of the family members of the apartment owner and other persons lodged in the apartment shall be governed by the Law on Residential Properties in so far as it is not in conflict with this Law.

(7) In transferring an apartment or artist's workshop into ownership until privatisation of the residential house to the person who has a debt of payments for tenancy, lease, and public utility services at the time of privatisation, the pledge right to the privatised object shall be concurrently corroborated in favour of the State or local government according to the amount of the sum of debts at the time of concluding a pledge contract.

(8) After commencement of privatisation of a residential house, the owner of an apartment, artist's workshop, or non-residential premises shall conclude the purchase contract referred to in Section 40 of this Law within the time period indicated in the notification of concluding a purchase contract.

(9) If a person who has acquired an apartment, artist's workshop, or non-residential premises into ownership until privatisation of the residential house has failed to conclude a purchase contract within the time period indicated in the notification of concluding a purchase contract, any transactions related to the apartment, artist's workshop, or non-residential premises which have been transferred into ownership until privatisation of the residential house are prohibited after 15 March 2013.

[7 May 1998; 16 December 1999; 21 February 2013; 1 June 2017]

Chapter XVI
Final Provisions

Section 74. Transfer of State and Local Government Residential Houses for Privatisation

(1) All State and local government residential houses which have been put into service until coming into force of this Law shall be transferred for privatisation, except for the cases referred to in this Law.

(2) Residential houses which are included in the equity capital of State or local government capital companies shall be privatised in accordance with the procedures specified in this Law only after they have been excluded from the equity capital of State or local government capital companies.

(3) State residential houses shall be transferred for privatisation to the authority carrying out privatisation of State residential houses or local governments in accordance with the procedures laid determined by the Cabinet. Residential houses transferred to local governments shall become the property of local governments. Residential houses transferred to the authority carrying out privatisation of State residential houses shall remain in possession and management of the previous possessor also after taking of the decision to commence the privatisation of a residential house, except for the cases where, upon agreement with the previous possessor, the authority carrying out privatisation of State residential houses takes over the relevant residential houses in its possession and management.

(4) State residential houses and undivided shares of residential houses shall not be transferred for privatisation if the Cabinet has taken the decision not to privatise them and keep them in the State property or to sell them at an auction in accordance with the Law on the Alienation of the Property of a Public Person. If an apartment, artist's workshop, or non-residential premises in a residential house are transferred into ownership until privatisation of the residential house, such residential house shall be transferred for privatisation in accordance with the procedures specified in this Law.

(4¹) Such rented State residential houses shall not be transferred for privatisation which are located in the territory of free economic zones or special economic zones and regarding the non-privatisation and preservation in State ownership of which, upon evaluation of the development plan of the relevant territory as well as the point of view of the executive board of the relevant free economic zone or special economic zone, the decision of the Cabinet has been taken until 1 December 2008. If after 1 December 2008 development plans of the relevant territory are amended by taking into account the point of view of the executive board of the relevant free economic zone or special economic zone, the Cabinet may revoke the decision not to privatise a rented State residential house and keep it in the State ownership.

(5) Unrented apartment residential houses and unrented apartments shall not be transferred for privatisation provided that a decision of a respective local government council has been taken on the non-privatisation and keeping thereof in the property of the local government, since it is necessary for implementation of the functions of the local government specified in laws.

(5¹) Such rented local government apartment residential houses and single dwellings shall not be transferred for privatisation which are located in the territory of the free economic zone or special economic zone and regarding the non-privatisation and preservation in local government ownership of which, upon evaluation of the development plan of the relevant territory as well as the point of view of the executive board of the relevant free economic zone or special economic zone, the decision of the relevant local government council has been taken until 1 December 2008. If after 1 December 2008 development plans of the relevant territory are amended by taking into account the point of view of the executive board of the relevant free economic zone or special economic zone, the local government council may revoke the decision not to privatise a rented local government residential house or single dwelling and keep it in the local government ownership.

(6) Non-residential premises shall not be transferred for privatisation if State or local government capital companies or institutions are situated there. If a residential house is transferred for privatisation to a local government, the non-residential premises where State or local government capital companies or institutions are situated shall be kept in the State property and recorded in the Land Register in the name of the State. This provision shall be also applicable to the non-residential premises which are located in a State residential house to be transferred for privatisation to a local government and where State capital companies are situated if the respective non-residential premises are not included in the equity capital of such capital companies.

(7) Official accommodation facilities, official apartments as well as social residential houses shall not be transferred for privatisation.

(8) Apartments in non-residential houses (schools, stations, and other similar buildings) shall not be privatised in accordance with this Law.

(9) [24 February 2005]

(10) In the cases provided for in the Law on Assistance in Solving Apartment Matters the residential spaces rented in accordance with the procedures specified therein shall not be transferred for privatisation, and it shall not be possible to acquire them into ownership until privatisation of the residential house.

[11 June 1997; 7 May 1998; 16 December 1999; 3 August 2000; 26 October 2000; 5 July 2001; 20 November 2003; 7 April 2004; 24 February 2005; judgement of the Constitutional Court of 6 June 2006; 18 May 2006; 21 February 2008; 12 June 2009; 16 June 2010; 21 February 2013; 13 June 2019]

Section 75. Application of this Law in Relation to Privatised Co-operative Apartments as well as Apartments and Residential Houses Privatised for Co-operative Shares

(1) If apartments in a residential house have been privatised in accordance with the law On Privatisation of Co-operative Apartments and the law On Privatisation of Agricultural Undertakings and Collective Fisheries, the privatisation commission shall determine the undivided share of joint property of the owner of each apartment and transfer the land parcel on which the residential house has been built for privatisation or in lease for 99 years.

(2) If an apartment has been purchased in accordance with the Decision of the Council of Ministers of the Latvian SSR and Latvian Republican Trade Union Council No. 171 of 24 July 1989, On the Sale of Apartments and Houses of the State and Public Apartment Fund to Citizens into Personal Ownership, the privatisation commission shall determine the undivided share of joint property of the owner of each apartment and transfer the land parcel on which the residential house has been built for privatisation or in lease for 99 years.

(3) State or local government land parcels which are located in State cities (except for the State city of Ogre) shall be transferred to the owners of the apartments referred to in Paragraphs one and two of this Section, and also State or local government land parcels on which privatised single dwellings are located shall be transferred to the owners thereof in rural areas for privatisation for certificates or equivalent amount in euros at the payer's choice.

(4) State or local government land parcels which are located in rural areas shall be transferred into ownership of the owners of the apartments referred to in Paragraphs one and two of this Section free of charge by entering into an agreement regarding transfer of land into ownership free of charge.

(5) If the residential house in which apartments have been privatised in accordance with the law On Privatisation of Co-operative Apartments and the law On Privatisation of Agricultural Undertakings and Collective Fisheries or purchased in accordance with the procedures specified in Paragraph two of this Section is built on the land of a natural or legal person, the owner of the land parcel and owners of the privatised apartments shall have the obligation to conclude a land lease contract in compliance with the provisions of Sections 50 and 54 of this Law.

(6) The undivided share of joint property of the owners of privatised apartments and the size and value of the land parcel on which a residential house is built shall be determined, an offer to purchase the land parcel, to acquire it into ownership free of charge or to lease it for 99 years shall be made as well as a contract on the purchase of the land parcel or an agreement regarding transfer of the land parcel into ownership free of charge shall be entered into in compliance with the provisions of this Law.

(7) Owners of the apartments referred to in Paragraphs one and two of this Section shall have to establish a society for joint administration and management of a house or to conclude a contract on the joint administration and management of an apartment house.

(8) Owners of the apartments referred to in Paragraph one of this Section shall settle payments for the determination of the land parcel necessary for putting into service of a residential house, survey of the land parcel, and registration of the residential house with the Land Register in euros.

(9) In the cases referred to in Paragraphs one and two of this Section, when determining the land parcel that is functionally necessary for a residential house, the provisions of Section 28 of this Law shall be applicable.

[28 November 1996; 7 May 1998; 19 September 2013; 19 June 2014; 17 June 2021]

Section 76. Inheritance of Apartment Privatisation Rights

(1) A privatisation right of the tenant of the apartment shall be recognised as a transferable right in accordance with Section 382 of the Civil Law.

(2) A privatisation right of the tenant of the apartment shall be recognised as a transferable right from the day when the tenant of the apartment:

1) has submitted a submission to the privatisation commission in compliance with the provisions of Section 73.³, Paragraph one of this Law;

2) has submitted an application to the privatisation commission in compliance with the provisions of Section 32 of this Law.

[11 June 1997]

Section 77. Actions Involving Non-privatised Residential Houses and Apartments, Artist's Workshops, and Non-residential Premises in Residential Houses

[18 May 2006]

Section 78. Privatisation of Non-residential Premises Functionally Unassociated with the Apartments, Artist's Workshops, and Non-residential Premises in Residential Houses

Non-residential premises in an auxiliary building or structure functionally associated with an apartment house or also a complex of premises which are marked as non-residential premises in the cadastral survey file and are not functionally associated with any of the apartments, artist's workshops, or non-residential premises in a residential house may be privatised as an independent privatisation object - non-residential premises together with a respective undivided share of the residential house in joint property in compliance with the procedures for privatisation of non-residential premises specified in this Law.

[5 July 2001]

Section 79. Notification of Reasons Hindering Privatisation

A privatisation commission or the authority carrying out privatisation of State residential houses shall send a notification to the tenants of rented apartments, single dwellings and to their adult family members, and also to the lessees of the leased artist's workshops informing them that it cannot commence privatisation of the relevant residential house for any of the following reasons hindering privatisation:

1) division of the joint property has not been terminated and the State or local government ownership rights to individual apartments, artist's workshops, or non-residential premises have not been specified in accordance with the provisions of Section 9 of this Law;

2) exclusion of the residential house or part thereof from the equity capital of a State or local government capital company has not been terminated in accordance with the provisions of Section 74 of this Law;

3) legal proceedings in relation to the issue regarding ownership rights of the residential house have been initiated and the relevant court ruling has not come into effect.

[7 April 2004; 24 February 2005; 18 May 2006; 21 February 2008; 12 June 2009; 13 June 2019]

Section 80. Sending of a Notification of Reasons Hindering Privatisation

The notification sent by a privatisation commission or the authority carrying out privatisation of State residential houses and referred to in Section 79 of this Law shall be considered as received from the moment when the tenant of the apartment or single dwelling or any of his or her adult family members or the lessee of the artist's workshop has confirmed with his or her signature that he or she has received the notification.

[7 April 2004; 21 February 2008; 12 June 2009; 13 June 2019]

Section 81. Submission of a Proposal of Privatisation

(1) After receipt of a notification of reasons hindering privatisation, the tenant of the apartment or single dwelling as well as the lessee of the artist's workshop has the right to submit a proposal of privatisation to the privatisation commission until 31 August 2006.

(2) The following shall be indicated in the proposal of privatisation:

1) the address and area of the privatisation object;

2) the given name and surname of the person who wishes to acquire an apartment, artist's workshop or single dwelling in his or her ownership;

3) the reasons hindering privatisation of the privatisation object.

[7 April 2004; 24 February 2005; 15 December 2005]

Section 82. Registration of the Proposal of Privatisation

(1) A privatisation commission or the authority carrying out privatisation of State residential houses shall register the proposal of privatisation in accordance with the procedures laid down by the Cabinet and shall, within one month from the day of receipt of the proposal of privatisation, provide a submitter of the proposal of privatisation with a written response which includes the following information:

1) the time of registration of the proposal of privatisation;

2) information on the rights and possibilities of the person who has submitted the proposal of privatisation to acquire an apartment, artist's workshop, or single dwelling into ownership;

3) the consequences which will come into effect if the person does not use the privatisation rights reserved thereto in the specified period of time.

(2) If the object regarding the privatisation of which the proposal of privatisation has been submitted is not transferable for privatisation in accordance with this Law, the privatisation commission shall not register the proposal of privatisation and shall provide a justified response to the submitter of the proposal of privatisation in writing within a time period of two weeks.

[7 April 2004; 21 February 2008; 12 June 2009; 13 June 2019]

Section 83. Time Periods and Procedures for the Submission of the Privatisation Application

(1) After removal of reasons hindering privatisation of the residential house, a person who has submitted the proposal of privatisation until 31 August 2006 or a person who has lawfully acquired the privatisation rights of the privatisation object after submission of the proposal of privatisation shall privatise the respective apartment, artist's workshop, or single dwelling in accordance with the procedures specified in this Law by submitting the privatisation application not later than:

1) until 28 February 2007 if a local government council (rural territory council) or the authority carrying out privatisation of State residential houses has taken the decision to commence privatisation of the residential house until 31 August 2006;

2) within six months after a local government council or the authority carrying out privatisation of State residential houses has taken the decision to commence privatisation of the residential house if it has been taken after 31 August 2006.

(2) If the privatisation application is not submitted within the period of time specified in Paragraph one of this Section or it has become known that the object is not transferable for privatisation in accordance with the procedures specified in this Law, the registered proposal of privatisation shall be deleted and the submitter of the proposal shall be notified thereof.

[7 April 2004; 24 February 2005; 15 December 2005; 21 February 2008; 12 June 2009; 13 June 2019]

Section 84. Privatisation of the Land Parcel Owned by the State or Local Government After Removal of Privatisation Restrictions

(1) If privatisation of a single dwelling or apartment house has been commenced until 30 September 2014 in accordance with the procedures laid down in Section 8.¹ of this Law and the house is completely or partially situated on the land owned by the State or local government in relation to which the privatisation restrictions, which were in effect at the time of commencement of privatisation of the single dwelling or apartment house, are no longer present, the land parcel owned by the State or local government (hereinafter in this Section - the land parcel) shall be transferred for privatisation by a decision of the local government council or the authority carrying out privatisation of State residential houses in accordance with the following procedures:

1) the land parcel on which the residential house transferred for privatisation is completely or partially situated shall be transferred into ownership free of charge;

2) the privatisation commission or the authority carrying out privatisation of State residential houses shall take the decision to enter into an agreement with the owner of the privatised apartment, artist's workshop, or non-residential premises on transfer of the land parcel into ownership free of charge according to the undivided share of the joint property of the privatised object;

3) the privatisation commission or the authority carrying out privatisation of State residential houses shall send an invitation to privatise the land parcel to each owner of the privatised object;

4) the privatisation commission or the authority carrying out privatisation of State residential houses shall indicate in the invitation the area of the land parcel to be privatised, the expenditure referred to in Clause 6 of this Section, and also the time period until which the agreement on transfer of the land parcel into ownership free of charge should be entered into;

5) the privatisation commission or the authority carrying out privatisation of State residential houses shall enter into the agreement on transfer of the land parcel into ownership free of charge in accordance with the procedures laid down in this Law with each owner of the privatised object;

6) expenditure for specification of the land parcel, survey of the land parcel and registration thereof in the Land Register shall be covered by the owner of the apartment, artist's workshop, or non-residential premises in proportion to the undivided share of the joint property of the privatised object.

(2) If the agreement referred to in Paragraph one, Clause 5 of this Section is not entered into within the time period specified in the invitation, the owner of the privatised object shall, until entering into of the relevant agreement, pay the lease payment for the undivided shares of the land parcel to be privatised which is owned by the State or local government and has been indicated in the invitation in accordance with the procedures and in the amount laid down in Section 53, Paragraph five of this Law.

[7 April 2004; 21 February 2008; 12 June 2009; 21 February 2013; 19 June 2014; 13 June 2019]

Section 85. Review of the Land Parcel that is Functionally Necessary for a Residential House

(1) Review of the land parcel that is functionally necessary for a residential house may be initiated by the following:

1) the owner of the privatised object (apartment owner) to whom the land parcel that is functionally necessary for the residential house has been transferred for lease for 99 years;

2) the owner of the privatised object (apartment owner) if the land parcel that is determined as functionally necessary for the residential house is fully or partly owned by another natural or legal person;

3) the owner of the land parcel that is functionally necessary for the residential house other than the owner of the privatised object.

(2) If the review of the land parcel that is functionally necessary for a residential house has been initiated at least once, a local government shall concurrently evaluate also the need to review other land parcels that are functionally necessary for residential houses within borders of the relevant district.

(3) A local government shall lay down the following procedures in its binding regulations:

1) the procedures for proposing a review of the land parcel that is functionally necessary for a residential house;

2) the procedures by which it informs land owners and owners of privatised objects (apartment owners), seeks their points of view, and takes the decision referred to in Paragraph four of this Section in relation to the commencement of the review of land parcels that are functionally necessary;

3) the procedures by which it evaluates points of view of the persons concerned, reviews the area and borders of the land parcel that is functionally necessary for a residential house by taking into account also the situation in the relevant district, and takes the decision referred to in Paragraph six of this Section in relation to the review of the land parcel that is functionally necessary for the residential house.

(4) A local government shall take the decision to commence the review of the land parcel that is functionally necessary for a residential house not later than within six months from the day when the submission to initiate the review has been received. The decision to commence the review of the land parcel that is functionally necessary for the residential house may be appealed in accordance with the procedures laid down in the Administrative Procedure Law.

(5) Review of the land parcel that is functionally necessary for a residential house shall be completed not later than within two years and six months from the day when the decision to commence the review of the land parcel that is functionally necessary for the residential house is no longer subject to contesting. The decision to review the land parcel that is functionally necessary for the residential house may be appealed in accordance with the procedures laid down in the Administrative Procedure Law.

(6) Apartment owners are entitled to initiate review of the land parcel that is functionally necessary for the residential house in the case referred to in Paragraph one, Clause 1 or 2 of this Section, make observations during the review process of the land parcel that is functionally necessary for the residential house, and also appeal the decision of a local government to commence the review or to review the land parcel that is functionally necessary for the residential house if it has been decided by a community of apartment owners in accordance with the procedures laid down in the Law on Residential Properties.

(7) Initiation and commencement of the review of the land parcel that is functionally necessary for the residential house in the cases and in accordance with the procedures laid down in this Section shall not release the owner of the privatised object from the obligation to make a lease payment for land in accordance with the provisions of this Law.

(8) In the cases referred to in Section 75, Paragraphs one and two of this Law, when reviewing the land parcel that is functionally necessary for the residential house, the provisions of this Section and Section 86 of this Law shall be applicable.

[19 June 2014 / Section shall come into force on 1 July 2015. See Paragraph 52 of Transitional Provisions]

Section 86. Procedures for Determining and Covering Expenditure for the Review of the Land Parcel that is Functionally Necessary for the Residential House

(1) Expenditure for the review of the land parcel that is functionally necessary for the residential house shall be covered by the following:

1) the owner of the privatised object (apartment owner) - for the review of the land parcel that is functionally necessary for the residential house and is in the use of the owner in proportion to the undivided share of the joint property which is part of the privatised object;

2) the owner of the land parcel who has initiated the review of the land parcel that is functionally necessary for the residential house.

(2) The owner of the privatised object or the owner of the land parcel is entitled to cover expenditure for the review of the land parcel that is functionally necessary for the residential house within three years from the day of receipt of a payment order by making periodic payments.

(3) A local government is entitled to request payment for the review of the land parcel that is functionally necessary for the residential house in compliance with the provisions of Paragraph four of this Section.

(4) A local government shall cover administrative expenditure which are necessary to take the decision provided for in Section 85, Paragraph four of this Law to commence the review of the land parcel that is functionally necessary for the residential house, and also to seek points of view of the owners of privatised objects and owners of the land parcel.

(5) A local government shall lay down the following procedures in its binding regulations:

1) the procedures for calculating a payment for the review of the land parcel that is functionally necessary for the residential house (expenditure for organisational and technical activities to be performed in order to review the land parcel that is functionally necessary for the residential house);

2) the procedures for making payments for the review of the land parcel that is functionally necessary for the residential house.

[19 June 2014 / Section shall come into force on 1 July 2015. See Paragraph 52 of Transitional Provisions]

Transitional Provisions

1. During land reform, legal registration of an apartment, non-residential premises, artist's workshop as well as a single dwelling and apartment house property shall be admissible prior to corroboration of land ownership rights in the Land Register.

2. Any State or local government residential house which has been put into service until the day of coming into force of this Law may be alienated only by privatising it in accordance with the procedures specified in this Law. State residential houses and apartments in them shall be transferred to a local government in accordance with the procedures specified by the Cabinet after all expenditures in relation to preparation of the residential house for privatisation have been covered and then they shall be privatised in accordance with the procedures specified in this Law. Local governments shall have to accept for privatisation the residential houses of such State undertakings which have been privatised in accordance with the law On Privatisation of Property in Agriculture Service Undertakings, the law On Privatisation of Milk Processing Undertakings, the law On Privatisation of Meat Processing Undertakings, and the law On Privatisation of State Undertakings of Bread Production. If a State residential house and land underneath it is registered in the Land Register in the name of the State, the residential house shall be transferred to the local government together with the land. If a local government residential house is put into service after the day of coming into force of this Law, it shall be transferred for privatisation only by a decision of the relevant local government council. If a State residential house is put into service after the day of coming into force of this Law, it shall be transferred for privatisation only by a decision of the Cabinet.

[11 June 1997; 7 May 1998]

2.¹ In the case provided for in Section 7, Paragraph six of this Law, actions involving the respective State or local government land parcel shall be governed by the Law on Alienation of the Property of a Public Person.

[18 May 2006; 21 February 2013]

3. Starting from the day of coming into force of this Law, it is prohibited to alienate, pledge, and encumber State and local government residential houses or parts thereof as well as residential houses or parts thereof included in the equity capital of State and local government companies with property rights if the apartments in these houses are being rented and non-residential premises are being leased, except for the cases provided for in Section 9 and Section 74, Paragraph four of this Law.

[16 December 1999; 5 July 2001; 18 May 2006]

4. Starting from the day of coming into force of this Law, it is prohibited to sell the rental rights of State and local government apartments, except for the cases provided for in the law On Disbursement of Compensation to Emigrants Vacating Apartments.

4.¹ Until the taking of the decision to commence privatisation of the residential house or the decision to not privatise the residential house and to keep the house in State or local government ownership, it is prohibited to transform apartments in the residential house or elements of the residential house (attic, basements, staircases etc.), which do not belong to an apartment, non-residential premises or artist's workshop in the house, into artist's workshops or non-residential premises.

[24 February 2005]

5. Provisions of Sections 15 and 21 of this Law shall not be applicable to the selling of rental rights of an apartment if they are being sold in accordance with the law On Disbursement of Compensation to Emigrants Vacating Apartments.

6. Any unrented local government apartment or single dwelling shall be first offered for rental to the persons who are registered with the local government in order to receive assistance in solving apartment or single dwelling matters. If none of the persons referred to in this Paragraph have applied to rent the unrented apartment or single dwelling in accordance with the procedures laid down in the Law on Assistance in Solving Apartment Matters, it shall be privatised in accordance with the procedures laid down in this Law. Any unrented State apartment or single dwelling which is to be privatised in accordance with the procedures laid down in this Law shall be first offered for transfer into ownership of the local government in the administrative territory of which the unrented apartment or single dwelling is located. If the council of the relevant local government has not taken the decision on taking over the unrented State apartment or single dwelling into ownership of the local government within one month, the unrented apartment or single dwelling shall be privatised in accordance with the procedures laid down in this Law. If the council of the relevant local government has taken the decision on taking over the unrented State apartment or single dwelling into ownership of the local government, it shall be transferred to the local government in accordance with the procedures specified by the Cabinet.

[24 February 2005; 19 June 2014]

7. The Cabinet shall, in co-ordinating with the Latvian Association of Local and Regional Governments, have to approve the by-law of the Central Privatisation Commission of Residential Houses and a standard by-law regarding privatisation commissions of town and rural territory residential houses until 31 July 1995 as well as to approve, by 30 September 1995, any other laws and regulations necessary for the commencement of privatisation of residential houses.

8. The Cabinet shall have to establish the Central Privatisation Commission of Residential Houses until 31 July 1995, and town and rural territory local governments shall have to establish privatisation commissions of town and rural territory residential houses until 30 September 1995.

9. Offering of apartments, non-residential premises, artist's workshops, single dwellings, and apartment houses for privatisation shall be commenced from 1 November 1995.

10. The Riga City Council has the right to establish several privatisation commissions of State and local government residential houses.

11. With the coming into force of this Law, the law On Restrictions to Transactions Involving State and Local Government Residential Houses (Latvijas Republikas Saeimas un Ministru Kabineta Ziņotājs, 1995, No. 8) is repealed.

12. Due to the amendments made on 22 August 1996 to Section 18 of this Law and cancellation of auctions of leased non-residential premises, the council of the relevant local government may cancel the auctions of non-residential premises which were announced until 15 August 1996.

[22 August 1996]

13. Residential houses included in the equity capital of State or local government companies shall be excluded from the equity capital of the company and transferred to the local governments of the respective administrative territories or the authority carrying out privatisation of State residential houses for privatisation after all expenditure for the preparation of the residential house for privatisation have been covered, provided that the Cabinet has not laid down other procedures for financing preparation of the residential house for privatisation.

[28 November 1996; 11 June 1997; 7 May 1998; 20 November 2003; 21 February 2008; 12 June 2009; 13 June 2019]

14. The Cabinet shall, by 31 December 1996, specify the procedures by which an unrented local government apartment is transferred into ownership of a natural person (persons) free of charge in accordance with Section 47, Paragraph five of this Law.

[28 November 1996]

15. With the coming into force of this Law, Cabinet Regulation No. 119, Amendments to the Law On Privatisation of State and Local Government Residential Houses (Latvijas Republikas Saeimas un Ministru Kabineta Ziņotājs, 1996, No. 10), is repealed.

[28 November 1996]

16. [21 February 2008]

17. In privatising a State or local government apartment or single dwelling, a person shall be allowed to use privatisation or property compensation certificates of his or her minor children without the consent of the Orphan's and Custody Court. In such case the children may request recognition of ownership rights to a corresponding undivided share of the privatised apartment or a disbursement of a corresponding money compensation.

[11 June 1997]

18. [5 July 2001]

19. If the decision to commence privatisation of the residential house has been taken until 1 June 1998, the general meeting of apartment owners of the residential house referred to in Section 50, Paragraph six of this Law shall be convened not later than within six months after this day in order to establish a society of apartment owners or to conclude a mutual contract on the administration and management of the part of the apartment house in joint property in accordance with the procedures specified in the Civil Law.

[7 May 1998]

20. The procedures for termination of joint property in apartment residential houses which are in joint property of the State or local government and any other person shall be as follows:

1) valsts akciju sabiedrība "Valsts nekustamie īpašumi" [State joint-stock company State Real Estate], the authority carrying out privatisation of State residential houses, and also State and local government authorities which possess apartment residential houses that are in joint property of the State or local government and any other person shall develop and offer projects to joint owners for the division of the joint property in apartment properties or actual shares. The developed project for the division of the joint property shall be sent to the joint owners for examination, and an announcement regarding the project for the division of the joint property shall be published in the official gazette Latvijas Vēstnesis;

2) if the joint owner agrees to the offered project for the division of the joint property, the State or local government shall transfer the apartment properties, artist's workshops, or non-residential premises for privatisation within two months after concluding a contract regarding division of the joint property into apartment properties or actual shares;

3) if the joint owner does not agree to the offered project for the division of the joint property or has not given a response within two months after publication of the announcement in the official gazette Latvijas Vēstnesis, the State joint-stock company State Real Estate, the authority carrying out privatisation of State residential houses, or another State or local government authority which has offered the project for the division of the joint property shall sell the undivided share of the joint property owned by the State or local government at an auction on the basis of a Cabinet order or a decision of the respective local government council in accordance with the Law on the Alienation of the Property of a Public Person and Paragraph 20 of these Transitional Provisions;

4) the State joint-stock company State Real Estate or another State or local government authority which organises an auction shall publish an announcement in the official gazette Latvijas Vēstnesis regarding the auction and the time period by which the persons with the right of first refusal may apply for the relevant auction, and shall also send an offer to exercise the right of first refusal to the following persons:

a) to joint owners - for the undivided share to be sold for the initial auction price by making a full payment in euros;

b) to a group (groups) of apartment tenants the total area rented by the participants of which is not less than the area of the house belonging to the State or local government pursuant to the amount of the undivided share if the group (groups) of apartment tenants has (have) reached an agreement regarding the purchase of the undivided share belonging to the State or local government and has (have) entered into an authorisation agreement in which a specific person is authorised to exercise the right of first refusal of the group of apartment tenants in the name of the respective group. If the total area of the rented premises is smaller than the area of the house belonging to the State or local government pursuant to the amount of the undivided share, the area rented by the participants of the group of tenants shall be not less than 50 per cent of the total area rented in the house. The group of apartment tenants is entitled to exercise the right of first refusal to the undivided share which is to be sold and which is owned by the State or local government that corresponds to the total area of premises rented by the group of apartment tenants for the initial auction price by making a full payment in privatisation certificates, but to the undivided share which exceeds the total area of premises rented by the group of apartment tenants - by making a full payment in euros;

5) if the time period for application specified in the auction notification has been missed, the persons who have the right of first refusal shall lose the right of pre-emption to the undivided share to be sold;

6) if one or several joint owners and one or several groups of apartment owners or one or several joint owners or groups of apartment owners which have been established in accordance with the provisions provided for in Sub-paragraph 4 of this Paragraph have applied to the auction, the auction among the persons who have the right of first refusal shall be organised. Each joint owner and each group of apartment owners shall be an independent participant of the auction;

7) the difference between the bidden and the initial auction price shall be paid in euros.

[16 December 1999; 26 October 2000; 5 July 2001; 18 May 2006; 21 February 2013; 19 September 2013; 13 June 2019]

21. State residential houses, and also apartments, artist's workshops, and non-residential premises in residential houses owned by the State in respect of the privatisation of which purchase contracts have not been concluded and which have not been transferred into ownership until privatisation of the residential house (hereinafter - the non-privatised part of the residential house) shall be transferred, in accordance with the procedures determined by the Cabinet, into ownership of such local governments in the administrative territory of which the respective houses are located. The obligation which has been referred to in Section 50, Paragraph seven of this Law and provides for administration and management of a residential house until the administration rights thereof are transferred to a society of apartment owners or person authorised by a mutual contract of apartment owners if an agreement has been reached thereon with a relevant local government may also be transferred to a local government, together with the non-privatised part of the residential house.

[17 June 2021]

22. [27 June 2002]

23. [27 June 2002]

24. The Central Privatisation Commission of Residential Houses shall be liquidated by a Cabinet order. The Cabinet shall also determine the procedures for liquidation of the Central Privatisation Commission of Residential Houses and the day from which it is regarded liquidated. The Construction, Energy, and Housing State Agency shall take over the liabilities of the Central Privatisation Commission of Residential Houses in accordance with the procedures determined by the Cabinet.

[20 November 2003; 21 February 2008]

24.¹ The Construction, Energy, and Housing State Agency shall commence fulfilment of the functions specified in Section 59 of this Law from 1 January 2004.

[20 November 2003; 21 February 2008]

25. [26 October 2000]

26. A local government council may take the decision to terminate activity of the privatisation commission of residential houses of the relevant local government if all local government residential houses to be transferred for privatisation and located in the administrative territory of the respective local government are offered for privatisation in accordance with the procedures laid down in this Law.

[27 June 2002]

27. [1 July 2004 / See Transitional Provisions]

28. The Central Privatisation Commission of Residential Houses shall receive a grant from the general income of the State budget for the maintenance of residential houses during the privatisation process thereof until transfer of such houses to the Construction, Energy, and Housing State Agency according to the State budget law for 2004.

[30 October 2003; 21 February 2008]

29. The privatisation commission or the Construction, Energy, and Housing State Agency shall send the notification provided for in Section 79 of this Law until 1 December 2004.

[7 April 2004; 21 February 2008]

30. From 1 September 2006, State or local government residential houses, undivided shares thereof if the residential house is in the joint property of the State or local government and any other person, and also apartments, artist's workshops, and non-residential premises in the residential houses shall be alienated in accordance with the Law on the Alienation of the Property of a Public Person, except for the cases provided for in Paragraph 30.¹ of Transitional Provisions of this Law.

[18 May 2006; 21 February 2013]

30.¹ After 1 September 2006, the following shall be privatised in accordance with the procedures specified in this Law:

1) residential houses and the apartments, non-residential premises, and artist's workshops in these residential houses whose privatisation had to be commenced by the Construction, Energy, and Housing State Agency or a local government council in accordance with the conditions of this Law;

2) the undivided shares of residential houses if the house is in the joint property of State or local government and any other person and which was established in the period up to 31 August 2006;

3) the residential houses recognised as properties without owners in accordance with the procedures specified by law, the undivided shares thereof, and apartment properties which are rented or in which the persons living therein reside there legally;

4) privatisation objects in the cases provided for in Section 83 of this Law;

5) residential houses and the apartments, non-residential premises, and artist's workshops in these residential houses if the Cabinet or a local government council has revoked the decision not to privatise the residential house and keep it in the ownership of the State or the relevant local government in accordance with Section 74, Paragraph 4.¹ or 5.¹ of this Law.

[21 February 2008; 16 June 2010]

30.² [1 June 2017]

31. Clause 27 of these Transitional Provisions shall be in force until 30 June 2004.

[7 April 2004]

32. Section 84 of this Law shall come into force on 1 July 2004.

[7 April 2004]

33. Privatisation of the land parcel owned by the State or local government which has been commenced until 1 July 2004 in accordance with the provisions of Paragraph 27 of these Transitional Provisions shall be completed in accordance with the abovementioned provisions.

[7 April 2004]

34. [28 January 2010]

35. The Cabinet shall, by 1 September 2004, approve the procedures for the registration of proposals of privatisation.

[7 April 2004]

36. If an artist's workshop has been built and put into service pursuant to a building design approved in accordance with the procedures specified in laws and regulations until the day of coming into force of the law On Privatisation of State and Local Government Residential Houses, it shall be privatised by applying the procedures for the privatisation of an apartment specified by the Law.

[24 February 2005]

37. Upon the proposal of the Ministry of Economics, the Cabinet may restore the status of a residential house to the buildings belonging to the State if the status of a residential house had been recorded in the survey file of the respective building on the day of coming into force of this Law. Rented apartments and leased artist's workshops in such a house shall be transferred for privatisation if the tenancy agreements of the respective residential premises or lease contracts of artist's workshops have been concluded until 25 July 1995. The other apartments, artist's workshops, and non-residential premises in such a house shall not be transferred for privatisation, they shall be kept in the State ownership and recorded in the Land Register in the name of the State.

[24 February 2005; 19 April 2007]

38. A local government council may restore the status of a residential house for the buildings in which the existing (or former) apartments, artist's workshops, or non-residential premises have been transferred into ownership until privatisation of the residential house if at the moment of privatisation of the respective objects the building was a residential house and the type of use of the building was changed until transfer thereof for privatisation as a result of which the building is no longer a residential house.

[24 February 2005]

39. The Cabinet shall, by 31 December 2005, develop the procedures for the establishment, maintenance, and development of the information system and data base for observation, analysis, forecasting, and control of the situation in the field of housing (a housing monitoring system).

[24 February 2005]

40. The lease payment of the land parcel for an owner of the privatised apartment and artist's workshop which has been specified in accordance with the procedures specified in Section 54, Paragraph two of this Law may not exceed in 2009 and 2010 the amount of the lease payment of the land parcel calculated for the previous year by more than 25 per cent.

[22 October 2009 / Paragraph has been recognised as non-compliant with Article 105 of the Constitution of the Republic of Latvia by judgement of the Constitutional Court of 27 January 2011]

40.¹ If the owner of a privatised apartment or artist's workshop and the land owner have concluded a land lease contract until 1 November 2009 and the lease payment for land provided for therein is higher than in the event of applying the conditions referred to in Section 54, Paragraph two of this Law and Paragraph 40 of Transitional Provisions, the owner of the privatised apartment and artist's workshop shall be obliged to pay the lease payment for land specified in the contract.

[22 October 2009]

41. Until 1 October 2009, privatisation commissions of town and rural territory residential houses, except for the privatisation commissions of republic city residential houses and residential houses of the city of Jēkabpils and city of Valmiera, shall be reorganised by establishing privatisation commissions of municipality residential houses. The privatisation commissions of residential houses of the city of Jēkabpils and city of Valmiera shall be reorganised from 1 July to 1 October 2009 by establishing relevant privatisation commissions of republic city residential houses.

[12 February 2009]

42. Amendments to this Law regarding the replacement of words "council (rural territory council)" with the word "council", the replacement of the word "city" with the words "republic city", and the replacement of the word "rural territory" with the word "municipality", to Section 59, Paragraph two, Clause 7 regarding the replacement of the words "with an authorisation of the city and municipality council, rural territory council or district council" with the words "with the authorisation of the republic city and municipality council", to Section 60, Paragraph two and Section 68, Paragraphs one and two regarding the replacement of the words "rural territory council" with the words "municipality council", and also to Paragraph 17 of Transitional Provisions regarding the replacement of the words "Orphan's court (parish court)" with the words "Orphan's and Custody Court" shall come into force on 1 July 2009.

[12 February 2009]

43. In taking over tasks from the Construction, Energy, and Housing State Agency, the performance of the tasks of valsts akciju sabiedrība "Privatizācijas aģentūra" [State joint-stock company Privatisation Agency] shall be granted out of the 2009 budget which has been granted to the Construction, Energy, and Housing State Agency in accordance with Section 67, Paragraph five, Clause 4 of this Law.

[12 June 2009]

44. The obligation imposed on the owner of a privatised apartment and artist's workshop to compensate the land owner for the payment of the immovable property tax for land as provided for in Section 54, Paragraph two of this Law shall be applicable from 1 January 2010.

[22 October 2009]

45. [13 June 2019]

46. The owner of a privatised object shall pay the lease payment referred to in Section 84, Paragraph two of this Law from 1 April 2013.

[21 February 2013]

47. Until the moment when the authority specified by the Cabinet commences acceptance of the payments referred to in Section 45, Paragraph three, Section 73.³, Paragraph nine, and Section 73.⁴, Paragraph six of this Law, these tasks shall be carried out by valsts akciju sabiedrība "Latvijas Attīstības finanšu institūcija Altum" [State joint-stock company Development Finance Institution Altum].

[16 January 2014]

48. Division of the land owned by the State or local government referred to in Section 7, Paragraphs five and six, and also Section 7.¹ of this Law and transfer thereof for privatisation in accordance with the procedures laid down in this Law or into ownership of the owner of the privatised object in accordance with the provisions of Section 84 of this Law shall be commenced from 1 October 2014.

[19 June 2014]

49. In the case specified in Section 7.¹ of this Law, the land in joint property of the State or a local government and a natural or legal person shall be divided into actual shares in accordance with the following procedures:

1) a State or local government authority which possesses the land in joint property of the State or local government and natural or legal persons shall develop and offer to joint owners a project for the division of the land in joint property in actual shares. The developed project for the actual division of the joint property shall be sent to joint owners for examination. An announcement regarding the project for the division of the joint property shall be published in the official gazette Latvijas Vēstnesis;

2) if the joint owner agrees to the offered project for the actual division of the joint property, the State or local government shall transfer the actual share owned thereby for privatisation within six months after concluding a contract for the division of the land in joint property into actual shares;

3) if the joint owner does not agree to the offered project for the division of the land in joint property or has failed to provide a response within two months from the day when the advertisement has been published in the official gazette Latvijas Vēstnesis, the land in joint property of the State or local government and natural or legal person shall not be divided.

[19 June 2014]

50. Amendment to Section 54, Paragraph one of this Law regarding the lease of the land parcel within the borders of the land parcel that is functionally necessary shall not be applicable to the land lease contracts which have been concluded before 31 December 2014 - the land shall be still leased within the area specified in the contract. If a court has determined the land area to be leased, the owner of the privatised object shall continue leasing the land within the area specified by the court also after coming into force of the provision of Section 54, Paragraph one of this Law.

[19 June 2014]

51. Amendment to Section 54, Paragraph two of this Law regarding the obligation to compensate a land owner for the cancellation of payments of the immovable property tax for land shall come into force on 1 January 2015.

[19 June 2014]

52. Amendments to Section 28 of this Law regarding the determination of the land parcel that is functionally necessary for a residential house to be privatised, and also Section 75, Paragraph nine, Sections 85 and 86 shall come into force on 1 July 2015.

[19 June 2014]

53. The Cabinet shall, by 30 September 2015, submit to the Saeima a draft law regarding termination of a legal relationship of the divided property between the owner of the privatised object and the owner of the land parcel on which the privatised object is located.

[19 June 2014]

54. The Cabinet shall take the decision on which authority will carry out privatisation of State residential houses in the future not later than by 1 September 2019. Until the moment when the Cabinet takes the decision on the authority carrying out privatisation of State residential houses, the tasks of the authority carrying out privatisation of State residential houses which have been specified in this Law shall be fulfilled by akciju sabiedrība "Publisko aktīvu pārvaldītājs Possessor (Privatizācijas aģentūra)" [joint-stock company Public Asset Manager Possessor (Privatisation Agency)].

[13 June 2019]

The Law has been adopted by the Saeima on 21 June 1995.

President G. Ulmanis

Rīga, 11 July 1995

¹ The Parliament of the Republic of Latvia

Translation © 2022 Valsts valodas centrs (State Language Centre)