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

Law On Residential Properties

Chapter I
Residential Property

Section 1. Purpose of the Law

The purpose of this Law is to prescribe the status of a residential property, the rights, duties and accountability of an apartment owner, as well as the competence and decision-making procedures of the community of apartment owners.

Section 2. Residential Property and the Composition Thereof

(1) A residential property is an independent immovable property which has been legally partitioned in a residential house.

(2) A residential property as a whole shall consist of an individual property and the relevant undivided share of the joint property. The individual property and the undivided share of the joint property included in the apartment property shall be legally inseparable.

(3) In relation to the residential property, insofar as it is not regulated by this Law, the norms of the Civil Law shall be applicable. The provisions of Section 927 of the Civil Law shall be applied to residential properties with the restrictions provided for in this Law.

Section 3. Individual Property

(1) An individual property shall be structurally and functionally enclosed premises or a group of premises in a residential house, which have been marked as an apartment, non-residential premises or artist's workshop on the cadastral survey file.

(2) Elements of an individual property shall be:

1) the structural non-load bearing, enclosing and finishing elements of the premises or a group of premises (including internal partitions, ceilings, floor and wall finishes, doors);

2) engineering networks and engineering communications to the vertical connecting pipe of the joint property;

3) engineering equipment components (including kitchen facilities, ventilation installations, toilet, shower and bath facilities), without which the elements of the existing share of the joint property residential house can function independently; and

4) enclosing windows and doors of the individual property.

(3) In addition the composition of an individual property may include auxiliary premises located outside premises or a group of premises and functionally associated therewith and auxiliary structures or their parts, which are not functionally associated with the existing share of the joint property residential house or another individual property.

Section 4. Existing Joint Property Share

(1) An existing joint property share shall include the following:

1) external enclosing structures (including walls, architectural elements, the roof, windows and doors of premises for common use, also exterior doors) of the residential house and external premises thereof (galleries, balconies, loggias, terraces), internal load bearing constructions (including supporting walls and columns, as well as separate enclosing walls of the property), intermediate coverings (including heat and sound insulation layers), premises for common use (including attics, stairwells and cellars), as well as the engineering communication systems, devices servicing the residential house and other indivisible elements functionally associated with the exploitation of the residential house, which do not belong to an individual property (including the heating elements within the boundaries of the individual property, if their functional activity depends on the existing engineering communications of the joint property);

2) the auxiliary buildings and structures belonging to the residential house, except those referred to in Section 3, Paragraph three of this Law; and

3) the land parcel, on which the relevant residential house is situated, if it does not belong to another person.

(2) Sections 1067 - 1072 of the Civil Law shall be applied to the existing joint property share. The requirements of Section 1068, Paragraph one of the Civil Law shall be applied insofar as not specified otherwise in Section 17, Paragraphs six, seven, eight and nine of this Law.

Section 5. Amount of the Undivided Share of the Joint Property

(1) The undivided share of the joint property contained within the residential property shall be the total area of the individual property in proportion to the total area of all individual properties existing in the residential house.

(2) Upon alteration of the total area of an individual property, the undivided shares of the joint property included in each residential property shall also be amended accordingly, except the case referred to in Paragraph three of this Section.

(3) The provisions of Paragraph two of this Section shall not be applicable in cases when the alterations to the total area of an individual property have resulted, performing reconstruction, renovation or restoration within the boundaries of the individual property.

Section 6. Establishment and Founding of a Residential Property

(1) A residential property may be established on the basis of law, a court judgment or transaction, including a will, or a decision of the house owner. The residential property shall be established by dividing a residential house entered in the Land Register in accordance with the provisions of this Law together with the auxiliary buildings, structures and land belonging thereto.

(2) A residential property shall be established upon the recording thereof in the Land Register.

Section 7. Expiration of a Residential Property

A residential property shall expire, if it has been destroyed or is being altered into a different property on the basis of law, a court judgment, transaction, including a decision of apartment owners or a will.

Chapter II
Apartment Owner, His or Her Rights, Duties and Accountability

Section 8. Apartment Owner

(1) An apartment owner shall be a person who has acquired a residential property and has recorded ownership rights in the Land Register.

(2) Until the registration of a residential property in the Land Register, all norms of this Law that determine the rights, duties and accountability of a residential property owner shall apply to the residential property acquirer, except such rights specified in law, which the residential property acquirer acquires after registration of the residential property in the Land Register.

Section 9. Rights of an Apartment Owner

An apartment owner in respect of the residential property has complete right of control, including the following rights:

1) to possess and use his or her residential property, obtain benefits therefrom, use it at his or her own discretion for the propagation of property and generally use it in every way, insofar as the owner is not restricted by laws and insofar as it does not create disturbances for other apartment owners;

2) alienate, including give as a gift, a residential property;

3) to pledge and otherwise burden a residential property with property rights;

4) transfer a residential property to the use of other persons;

5) to lodge family members and other persons in a residential property;

6) participate in the administration of the residential house; and

7) to use the existing joint property share, insofar as limitations of use are not specified by decisions taken by the community of apartment owners in accordance with the procedures specified in this Law.

Section 10. Duties of an Apartment Owner

An apartment owner has the following duties:

1) to participate in the administration of the residential house:

2) to cover the administration expenditure of the residential house in accordance with the procedures specified in Section 13 of this Law;

3) to settle accounts for the received services, which are related to the use of the residential property (for example, heating, cold water, sewerage and removal of household waste);

4) to pay the taxes applied to the residential property;

5) to make lease payments for the use of land, if the residential house is located on land belonging to another person;

6) to treat with care the existing joint property share, observing the conditions for use thereof, as well as all the sanitary and fire safety requirements and other requirements specified in regulatory enactments in order not to cause harm to the safety and health of other persons, the quality of the surrounding environment, and to ascertain that these provisions and conditions are observed by persons lodged in his or her residential property;

7) to ensure the possibility for specialists authorised by the community of apartment owners or the administrator to perform activities in the residential property, which are necessary for the establishment and normal functioning of communications, building structures and other elements related to the exploitation of the residential house, as well as provide the possibility to inspect an individual property; and

8) to execute the decisions taken by the community of apartment owners.

Section 11. The Right of an Apartment Owner to Reconstruct, Renovate or Restore a Residential Property

(1) An apartment owner has the right to reconstruct, renovate or restore (hereinafter - rebuild) an individual property, insofar as it does not affect the existing joint property shares or other residential properties, without having to co-ordinate with other apartment owners, but observing the provisions of regulatory enactments.

(2) An apartment owner has the right, observing the provisions of regulatory enactments, to rebuild the enclosing windows and doors of the individual property without co-ordinating with other apartment owners, if the community of apartment owners has not decided otherwise.

(3) If the rebuilding of an individual property affects the existing joint property share, it shall be necessary for the apartment owner to receive a consent of the community of apartment owners in accordance with the procedures specified in this Law.

(4) If the rebuilding of an individual property affects another individual property, it shall be necessary for the apartment owner to obtain a consent of the relevant apartment owner.

Section 12. Right of First Refusal of Apartment Owners

(1) Upon alienating a residential property, the other apartment owners of the relevant residential house do not have the right of first refusal or redemption right, except the cases where the community of apartment owners has taken a decision thereon in accordance with the procedures specified in this Law and an entry has been made in the Land Register regarding the existence of right of first refusal.

(2) The right of first refusal shall be exercised in accordance with the procedures specified in the Civil Law.

Section 13. Covering of Administration Expenditure of a Residential House

(1) An apartment owner, according to the existing joint property share included in his or her residential property, shall cover the expenditure specified on the basis of a decision of the community of apartment owners for the performance of mandatory administrative activities of the residential house, as well as the remuneration to the residential house administrator specified by the community of apartment owners, if such has been provided for in the residential house administration contract.

(2) An apartment owner, according to the existing joint property share included in his or her residential property, shall cover the expenditure specified on the basis of a decision of the community of apartment owners cover for the performance of other administrative activities of the residential house, which ensure improvement and development of the residential house, promote the formation of optimal administration expenditure thereof, and apply to:

1) the changing of elements, installations or communications, which are in the joint property of the residential house, if such changing results in reduction of the maintenance costs of the house;

2) measures, which result in reduction of expenditure for services related to the use of the residential property.

(3) In taking the decision referred to in Paragraph two of this Section, the community of apartment owners shall evaluate the documents, which justify the cost-effectiveness of the relevant activities in compliance with that specified in Paragraph two, Clauses 1 and 2 of this Section.

Section 14. Accountability of an Apartment Owner

(1) An apartment owner shall be accountable for the losses caused to other apartment owners or other persons according to the procedures specified in regulatory enactments, decisions of the community of apartment owners or mutually entered into contracts.

(2) If an apartment owner does not have other property to cover losses, recovery may be directed against the residential property in accordance with the procedures specified in the Civil Procedure Law, concurrently evicting the apartment owner, his or her family members and other persons lodged in the residential property.

(3) A residential property may be alienated in accordance with the procedures specified in the Civil Procedure Law, concurrently evicting the apartment owner, his or her family members and other persons lodged in the residential property, if the apartment owner, a member of his or her family or another person lodged in the residential property violates the requirements of regulatory enactments, which apply to the use of the residential property, including sanitary and fire safety norms, and, thus, causes harm to the safety and health of other persons, the quality of the surrounding environment.

(4) A request regarding the alienation of a residential property in the cases specified in Paragraph three of this Section may be raised by any apartment owner.

Chapter III
Community of Apartment Owners

Section 15. Status of the Community of Apartment Owners

(1) The community of apartment owners is the administrative body of a residential house, which is partitioned into apartment properties.

(2) The composition of the community of apartment owners shall include all apartment owners of the residential house.

(3) If the existing apartment properties in the residential house belong to one person, they have all the rights and duties of the community of apartment owners provided for in this Law.

Section 16. Competence of the Community of Apartment Owners

(1) A community of apartment owners has the right to decide any matter, which relates to the existing joint property share. The community of apartment owners, by entering into a relevant contract, may authorise another person to decide a matter which is within the competence of the community, except the matters referred to in Paragraph two of this Section.

(2) Only the community of apartment owners has the right to take a decision regarding the following:

1) the alteration of the existing joint property share (increasing, decreasing);

2) the specification of the procedures for the use of the existing joint property share between apartment owners;

3) the establishment and revoking of the right of first refusal of apartment owners;

4) the granting and revoking of authorisations;

5) the specification of restrictions for the right of use;

6) the transferring for use of the existing joint property share;

7) the form of administration of the existing joint property share;

8) the assigning of individual or all administrative activities of the residential house to an administrator;

9) the procedures for the determination and payment of the administration expenditure of the residential house; and

10) other matters, which the community of apartment owners has specified as such that only fall within the competence of the community of apartment owners.

(3) A decision of the community of apartment owners shall be binding for all apartment owners, if apartment owners who represent more than a half of the residential properties of the residential house have voted "for", except the cases where another number of votes necessary for taking of a decision has been provided for in Section 17 of this Law or a larger necessary number of votes has been specified by the community of apartment owners itself.

(4) A court, on the basis of an application by an apartment owner, may declare a decision taken by the community of apartment owners as invalid, if the decision or the procedures for taking thereof are in contradiction with the provisions of this Law. An action may be brought within three months from the day when the person concerned became aware, or should have become aware of the decision of the community of apartment owners, but not later than one year from the day of taking of the decision.

Section 17. Conditions for Decision-Making of a Community of Apartment Owners

(1) When taking a decision of a community of apartment owners, each apartment owner shall have as many votes as there are apartments in his or her ownership.

(2) If one apartment owner owns more than a half of the apartments existing in the residential house, when voting he or she shall have 50 per cent of the votes of all votes of apartment owners.

(3) If a residential property belongs to two or more joint owners, they shall authorise one person to represent all apartment owners and shall have one vote when voting.

(4) An apartment owner, when authorising another person to represent his or her interests in the community of apartment owners, shall draw up a written authorisation thereof.

(5) In order to take a decision regarding the matters referred to in Section 16, Paragraph two, Clauses 1 and 2 of this Law, it shall be necessary that all apartment owners vote "for".

(6) In order to take a decision regarding the establishment of the right of first refusal referred to in Section 16, Paragraph two, Clause 3 of this Law, it shall be necessary that all apartment owners vote "for". In order to take a decision on deletion of the entry regarding the right of first refusal from the Land Register, it shall be necessary that apartment owners who vote "for" represent more than a half of all apartment properties.

(7) In order to take a decision on the matters referred to in Section 16, Paragraph two, Clause 4 of this Law, it shall be necessary that apartment owners who vote "for" represent at least two-thirds of all apartment properties.

(8) In order to take a decision on the matters referred to in Section 16, Paragraph two of this Law, namely, on the establishment, construction or relocation of the water supply, sewerage and public electronic communications networks, it shall be necessary that apartment owners who vote "for" represent more than a half of all apartment properties. Restrictions to the right of use in relation to the establishment, installation, exploitation and development heating, electricity and gas supply installations and devices shall be determined in accordance with the procedures specified in the Energy Law and other regulatory enactments.

(9) In order to take a decision on the matters referred to in Section 16, Paragraph two, Clauses 6, 7, 8, 9 and 10 of this Law, it shall be necessary that apartment owners who vote "for" represent more than a half of all apartment properties.

Section 18. Procedures for Decision-Making of a Community of Apartment Owners

(1) The procedures and manner of decision-making of a community of apartment owners shall determined by the community of apartment owners, observing the provisions of this Law.

(2) The community of apartment owners may take decisions on the matters within the competence thereof as follows:

1) at a general meeting of apartment owners (Section 19);

2) without convening a general meeting of apartment owners - by means of a questionnaire (Section 20); or

3) upon mutual agreement of another kind (Section 21).

(3) All decisions of the community of apartment owners shall have equal legal force regardless of the manner referred to in Paragraph two of this Section in which they were taken.

(4) The community of apartment owners may specify, which matters may only be decided at a general meeting of apartment owners.

(5) All decisions taken by the community of apartment owners shall be drawn up in writing.

Section 19. Procedures for the Convening of and Procedural Requirements for a General Meeting of Apartment Owners

(1) A general meeting of apartment owners shall be convened upon the initiative of one or more apartment owners or the administrator in accordance with the procedures specified by apartment owners.

(2) Every apartment owner shall be invited, in writing or according to other procedures specified by the community of apartment owners, to a general meeting of apartment owners not later than one week prior thereof. The invitation shall include the place, time and agenda of the general meeting.

(3) A general meeting of apartment owners shall have a quorum, if apartment owners representing more than half of all residential properties participate therein. If the specified number of apartment owners does not attend the general meeting, the general meeting shall be deemed not to have taken place.

(4) Apartment owners who are in attendance at a general meeting, shall register in the registration list of members in attendance.

(5) At a general meeting of apartment owners a chair and a recorder of minutes for the general meeting shall be elected.

(6) The procedures, by which general meetings of apartment owners shall be convened and how the decisions taken therein and minutes shall be drawn up, shall be determined by the community of apartment owners.

Section 20. Decision-Making of a Community of Apartment Owners, without Convening a General Meeting of the Community of Apartment Owners

(1) Apartment owners have the right to take decisions, without convening a general meeting of apartment owners, - by means of a questionnaire, if the community of apartment owners has not specified that the relevant matter shall only be decided at a general meeting of apartment owners.

(2) If a decision is taken, without convening a general meeting of apartment owners, - by means of a questionnaire, the administrator or another person determined by the community of apartment owners shall, in writing, send each apartment owner the draft decision on the matter to be decided and the documents, which are relevant to taking of the decision, as well as indicate the term, during which an apartment owner may vote "for" or "against" in writing regarding taking of the decision. The term shall not be less than two weeks after sending of the draft decision. If the apartment owner has not replied in writing within the specified period of time, it shall be considered that he or she has voted against taking of the decision.

(3) The administrator or another person determined by the community of apartment owners shall prepare a voting report on the results of voting and, within five working days, send it to all apartment owners. The voting report shall indicate the following:

1) the date when the draft decision was sent and the term during which the apartment owners had to vote;

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

3) upon the request of apartment owners - the content of differing opinions; and

4) other significant information regarding the voting.

(4) If any of apartment owners so requests, the administrator or another person determined by the community of apartment owners shall provide the voting results of other apartment owners.

(5) The procedures, by which the community of apartment owners shall take decisions, without convening a general meeting of apartment owners, - by means of a questionnaire, shall be determined by the community of apartment owners.

Section 21. Decision-making of a Community of Apartment Owners by Mutual Agreement of Another Kind

(1) A mutual agreement between all apartment owners shall be accepted as the decision of the community of apartment owners.

(2) If all apartments in a residential house belong to one person, his or her decision shall be considered as the decision of the community of apartment owners.

Transitional Provision

With the coming into force of this Law, the Law On Residential Properties (Latvijas Republikas Saeimas un Ministra Kabineta Ziņotājs, 1996, No. 1; 1997, No. 4; 1998, No. 23; 2001, No. 24; 2004, No. 9; 2009, No. 24) is repealed.

This Law shall come into force on 1 January 2011.

This Law was adopted by the Saeima on 28 October 2010.

President V. Zatlers

Riga, 21 November 2010

¹ The Parliament of the Republic of Latvia

Translation © 2011 Valsts valodas centrs (State Language Centre)