Regulations Regarding the Procedure and Terms for Exercising the Right of First Refusal on Cultural Monuments of State Significance

Issued pursuant to Section 8,
Paragraph one of the Law On Protection of Cultural Monuments

1. This Regulation prescribes the procedure and terms by which the State shall exercise its right of first refusal, if a cultural monument of State significance is being alienated.

2. When alienating immovable cultural monument of State significance, prior to registration of the property rights in the Land Register a purchase agreement or copy thereof (presenting the original of the purchase agreement) shall be submitted to the State Inspection for Heritage Protection or a regional division thereof (hereinafter - Inspection).

3. When alienating movable cultural monument of State significance, a purchase agreement or copy thereof (presenting the original of the purchase agreement) shall be submitted to the Inspection prior to the transfer of the file.

4. The Inspection shall issue a statement in writing after receipt of a purchase agreement or copy thereof. The following information shall be specified in the statement:

4.1. object to be alienated (for an immovable property - location thereof, cadastre number and cadastre designations of land parcels and structures included in the composition of the immovable property);

4.2. time of receipt of a purchase contract or copy thereof;

4.3. seller's:

4.3.1. given name, surname, personal identity number and place of residence - for natural persons;

4.3.2. name, registration number and legal address - for legal persons;

4.4. purchase fee; and

4.5. official or employee of the Inspection (position, given name and surname) who has accepted a purchase contract or copy thereof.

5. Taking into account the cultural and historical value of a cultural monument of State significance, location, type of use, as well as necessity to ensure the public availability of a cultural monument of State significance, and taking into account the public interests and usefulness considerations, the Inspection shall take a decision regarding exercising the right of first refusal or a decision regarding refusal to use the right of first refusal of the State.

6. The Inspection shall send a decision regarding refusal to use the right of first refusal of the State to a person who has submitted a purchase agreement or a copy thereof to the Inspection not later than within two working days after taking the decision.

7. If the Inspection takes a decision regarding exercising the right of first refusal of the State and the necessary financial resources are in the budget thereof, the Inspection shall, not later than within two working days after taking of the relevant decision, send it to the seller.

8. If the Inspection determines that it is necessary to exercise the right of first refusal of the State, but the necessary financial resources are not in the budget thereof, the Inspection shall, not later than within two working days, submit a justification for exercising the right of first refusal of the State, a draft deed of the transaction and draft Cabinet Order regarding granting of financial resources for exercising the right of first refusal (hereinafter - draft order) to the Ministry of Culture.

9. The Ministry of Culture shall send a draft order to the Ministry of Finance and Ministry of Justice for co-ordination. The Ministry of Finance and Ministry of Justice shall provide an opinion regarding the draft order to the Ministry of Culture within five working days.

10. The Minister for Culture, taking into account the opinion of the Ministry of Finance and the Ministry of Justice, shall, not later than within 20 working days after receipt of the purchase agreement or copy thereof in the Inspection, submit the draft order to the Cabinet in accordance with the specified procedure. The source of financing for covering the purchase fee shall be specified in the draft order.

11. If the Cabinet supports granting of financial resources for exercising the right of first refusal of the State, the Inspection shall take a decision regarding exercising the right of first refusal of the State and send it to the seller (not later than within two working days after adoption of the Cabinet decision).

12. If the Cabinet refuses granting of financial resources for exercising the right of first refusal of the State, the Inspection shall take a decision regarding refusal to exercise the right of first refusal of the State and send it to the person who has submitted a purchase agreement or copy thereof to the Inspection (not later than within two working days after adoption of the Cabinet decision).

13. The Inspection shall send a decision referred to in Paragraphs 7 and 11 of this Regulation regarding exercising the right of first refusal of the State to the seller as a post consignment with a notification regarding issue of the consignment.

14. In the cases and within the terms referred to in Paragraphs 7 and 11 of this Regulation, the Inspection shall send a decision regarding exercising the right of first refusal of the State as a registered post consignment also to the person who has submitted a purchase agreement or copy thereof to the Inspection, if such a person is not the seller, as well as to the division of the Land Register of the relevant administrative territory, if immovable cultural monument of State significance is being alienated.

15. A decision of the Inspection regarding exercising the right of first refusal of the State shall impose on it an obligation to prepare the relevant deed of transaction within 10 working days after taking of the decision on the basis of the conditions of agreement between the seller and purchaser and pay the sum specified in the purchase agreement in accordance with the procedure and within the terms specified in the agreement.

16. If the payment term sets in before the Inspection has taken a decision regarding exercising the right of first refusal of the State or within 10 working days from the day of taking of such a decision, the Inspection has an obligation to pay the sum specified in the purchase agreement not later than within 20 working days after taking of the decision.

17. After the purchase agreement or copy thereof has been submitted to the Inspection, the Inspection and contractors have no right to amend the agreement.

18. The agreement of the seller and purchaser regarding essential components and ancillary provisions of the purchase agreement legally entered into and included in the purchase agreement submitted to the Inspection shall be binding to the Inspection.

19. The right of first refusal of the State on cultural monument of State significance shall terminate if:

19.1. Inspection takes a decision regarding refusal to exercise the right of first refusal of the State;

19.2. Inspection has not taken a decision referred to in Paragraphs 7 and 11 of this Regulation regarding exercising the right of first refusal of the State within 30 days after receipt of the purchase agreement of movable cultural monument of State significance or copy thereof; or

19.3. Inspection has not taken a decision referred to in Paragraphs 7 and 11 of this Regulation regarding exercising the right of first refusal of the State within 60 days after receipt of the purchase agreement of immovable cultural monument of State significance or copy thereof.

20. The right of a purchaser to acquire the property rights to movable cultural monument of State significance shall be confirmed:

20.1. by a decision of the Inspection regarding refusal to exercise the right of first refusal of the State;

20.2. by a statement referred to in Paragraph 4 of this Regulation regarding receipt of the purchase agreement or copy thereof - not earlier than on the thirty eighth day after receipt of a purchase agreement or copy thereof in the Inspection.

21. The right of a purchaser to register the property rights to immovable cultural monument of State significance in the Land Register shall be confirmed:

21.1. by a decision of the Inspection regarding refusal to exercise the right of first refusal of the State (shall be appended to a request for the registration);

21.2. by a statement referred to in Paragraph 4 of this Regulation regarding receipt of the purchase agreement or copy thereof (shall be appended to a request for the registration not earlier than on the sixty eighth day after receipt of a purchase agreement or copy thereof in the Inspection).

22. A request for the registration of property rights to an immovable cultural monument of State significance to which the State has the right of first refusal, shall not be satisfied before the right of first refusal of the State has expired.

Acting for the Prime Minister - the Minister for Justice,
acting for the Minister for Interior A. Štokenbergs

Minister for Culture S. Ēlerte