The Saeima1 has adopted and
the President has proclaimed the following law:
Law on
Termination of Forced Shared Property in Privatised Apartment
Residential Houses
Chapter I
General Provisions
Section 1. Terms Used in the Law
The following terms are used in the Law:
1) alienation right - within the meaning of this Law,
the right of owners of residential properties of an apartment
residential house to redeem the land to be alienated at the
alienation price in accordance with the procedures laid down in
this Law;
2) land to be alienated - a plot of land determined in
accordance with the laws and regulations governing privatisation
of residential houses which is functionally necessary for a
residential house in the section corresponding to the plot of
land of the forced shared property;
3) apartment residential house - an apartment
residential house which is an independent property object
situated on the land owned by another person and is privatised in
accordance with the procedures laid down in the law On
Privatisation of State and Local Government Residential Houses,
the law On Privatisation of Cooperative Apartments, or the law On
the Privatisation of Agricultural Enterprises and Fishery
Collective Farms, and also division of which into residential
properties is registered in the State Immovable Property Cadastre
Information System;
4) apartment owner - within the meaning of this Law, a
person who has obtained a residential property and has
corroborated the ownership rights in the Land Register as well as
the legal possessor of the residential property until the moment
of entering the residential property in the Land Register who is
entered as such in the State Immovable Property Cadastre
Information System;
5) forced shared property - legal status according to
which the land and the structures situated on it are independent
property objects and the legal basis for existence thereof is
Section 14, Paragraph one, Clauses 1, 2, 3, and 4 or Paragraph
four of the law On the Time Period of Coming into Force and the
Procedures for the Application of the Introduction, Parts on
Inheritance Rights and Property Rights of the Renewed Civil Law
of 1937 of the Republic of Latvia;
6) plot of land - land owned by a private individual on
which an apartment residential house is situated, the ownership
rights to the land are corroborated in the Land Register, and it
coincides or partially coincides with the plot of land determined
in the laws and regulations governing privatisation of
residential houses which is functionally necessary for a
residential house. Within the meaning of this Law, any land which
has been obtained after transfer of a residential house for
privatisation and the ownership rights to this land are
corroborated in the Land Register in favour of apartment owners
of the respective residential house, and the extent of undivided
shares of the joint property of apartment owners for such land
corresponds to the undivided share of the land contained in the
composition of the respective residential property shall not be
considered a plot of land.
Section 2. Purpose of the Law
(1) The purpose of this Law is to ensure the possibility of
termination of forced shared property and establishment of a
single immovable property within the meaning of Section 968 of
the Civil Law.
(2) The forced shared property shall be terminated by
apartment owners exercising the alienation right in accordance
with the procedures laid down in this Law.
Section 3. Scope of Application of
the Law
(1) The Law prescribes the procedures by which a forced shared
property in which an apartment residential house and a plot of
land is situated shall be terminated.
(2) Apartment owners of the apartment residential house and
the owner of the plot of land, upon mutual agreement, may
determine forced shared property termination provisions that are
different from this Law, as far as it does not contradict with
the purpose of this Law and is aimed at termination of forced
shared property. If a forced shared property between an apartment
residential house and a plot of land is terminated on the basis
of mutual agreement, the procedures laid down by this Law shall
not apply to their termination.
(3) If land that is owned by or escheats to the State or local
government coincides or partially coincides with the plot of land
determined in accordance with the laws and regulations governing
privatisation of residential houses which is functionally
necessary for an apartment residential house, the forced shared
property shall be terminated in accordance with the procedures
laid down in the Law on the Alienation of the Property of a
Public Person or the law On Privatisation of State and Local
Government Residential Houses.
Chapter
II
Alienation Right and Commencement of the Exercising Thereof
Section 4. Alienation Right
(1) Apartment owners of an apartment residential house have
the alienation right to the land to be alienated. Exercising of
the alienation right in accordance with the procedures laid down
in this Law shall allow apartment owners of the apartment
residential house to acquire ownership of the redeemable
land.
(2) Exercising of the alienation right shall not require
consent of the owner of the plot of land.
(3) Until the first-time entry of the residential property in
the Land Register, the acquirer of the residential property shall
be subject to all the rights and obligations specified in this
Law.
(4) If the apartment owner changes during the process of
exercising the alienation right, the acquirer of the residential
property shall replace the previous apartment owner, taking over
all the rights and obligations thereof related to exercising of
the alienation right.
(5) If the owner of the plot of land changes during the
process of exercising the alienation right, the acquirer of the
plot of land shall replace the former owner of the plot of land,
taking over all the rights and obligations thereof related to
exercising of the alienation right.
Section 5. Commencement of the
Process of Exercising the Alienation Right
(1) To commence the process of exercising the alienation
right, the community of apartment owners of the apartment
residential house shall take a decision. In taking the decision
on commencement of the process of exercising the alienation
right, the community of apartment owners may authorise a person
to carry out activities related to the implementation of the
process of exercising the alienation right.
(2) The community of apartment owners of the apartment
residential house shall take the decision on commencement of the
process of exercising the alienation right in conformity with the
provisions for taking of a decision of the community of apartment
owners, specified in the Law on Residential Properties insofar as
it has not been laid down otherwise in this Law.
(3) The decision on commencement of the process of exercising
the alienation right and granting the authorisation referred to
in Paragraph one of this Section (if any is granted) shall be
taken if apartment owners of more than a half of all residential
properties located in the apartment residential house have voted
"for".
(4) The decision on commencement of the process of exercising
the alienation right shall serve as a legal basis for the local
government in the administrative territory of which the apartment
house is located to take the decision on a plot of land that is
functionally necessary for the apartment residential house.
(5) The local government shall take the decision on a plot of
land that is functionally necessary for the apartment residential
house not later than within six months from the day of receipt of
the submission for the commencement of the process of exercising
the alienation right.
(6) If the local government establishes that the plot of land
that is functionally necessary for the apartment residential
house must be revised, the revision shall be carried out in
accordance with the procedures laid down in the law On
Privatisation of State and Local Government Residential Houses.
The process of exercising the alienation right shall be continued
after taking of the decision on revision of the functionally
necessary plot of land.
(7) If the local government establishes that, within one year
prior to receipt of the submission referred to in Paragraph five
of this Section for the particular apartment residential house, a
sworn bailiff has terminated a case on termination of forced
shared property or land to be alienated is specified for the
respective apartment residential house and the alienation price
is in effect, the local government shall refuse to issue a
decision on a plot of land that is functionally necessary for the
apartment residential house. The local government shall request
information on the date of termination of the case of forced
shared property from the Latvian Council of Sworn Bailiffs. The
local government shall request the information on determination
of the land to be alienated and the validity of the alienation
price from the State Land Service.
(8) The owner of the plot of land has the right to propose to
apartment owners of the apartment residential house to take the
decision on commencement of the process of exercising the
alienation right.
Section 6. Determination and
Registration of the Land to be Alienated
(1) The land to be alienated shall be determined and
registered in the State Immovable Property Cadastre Information
System by the State Land Service in accordance with the
procedures laid down in this Law.
(2) When the local government decision on a plot of land that
is functionally necessary for the apartment residential house or
the decision on revision of the functionally necessary plot of
land has become uncontestable, the local government shall
immediately submit the following to the State Land Service for
determination and registration of the land to be alienated:
1) a digital plot of land design of the plot of land that is
functionally necessary for the apartment residential house in
vector data format in the Latvian geodetic coordinates system or,
if vector data is not available, on a specific scale on a
cartographic base, displaying the surface topographic situation,
a developed graphic material prepared in accordance with the
requirements of the law or regulation regarding the procedures
for the determination of a plot of land that is functionally
necessary for a residential house to be privatised;
2) the decision of the local government which has become
uncontestable on the purposes of use of land parcels or sections
of land parcels on the plot of land that is functionally
necessary for an apartment residential house;
3) the decision of the local government on a plot of land that
is functionally necessary for an apartment residential house or
the decision of the local government on revision of the
functionally necessary plot of land.
(3) The land to be alienated may consist of one or more land
parcels or their sections registered in the State Immovable
Property Cadastre Information System.
(4) If the land to be alienated coincides with one or more
land parcels registered in the State Immovable Property Cadastre
Information System, the State Land Service shall register a
corresponding land parcel or land parcels registered in the State
Immovable Property Cadastre Information System as the land to be
alienated in the State Immovable Property Cadastre Information
System.
(5) If the land to be alienated partially coincides with one
or more land parcels registered in the State Immovable Property
Cadastre Information System, the State Land Service shall
register a corresponding section of land parcel or sections of
land parcels as the land to be alienated in the State Immovable
Property Cadastre Information System.
(6) The area and borders of the land to be alienated
determined and registered in accordance with the procedures laid
down in this Law shall not subject to contesting and appeal.
(7) The procedures for the registration of the land to be
alienated in the State Immovable Property Cadastre Information
System shall be determined by the Cabinet.
Section 7. Alienation Price and the
Calculation Thereof
(1) The alienation price shall be calculated by the State Land
Service in accordance with the procedures laid down in this
Law.
(2) The apartment owners shall redeem the land to be alienated
at the alienation price which consists of the sum of cadastral
values of land parcels and sections of land parcels included in
the land to be alienated.
(3) Each apartment owner shall pay a share of the alienation
price according to the extent of the undivided share of the joint
property included in the composition of his or her residential
property.
(4) For the calculation of the alienation price, the cadastral
value of the land parcel and the section of land parcel
registered in the State Immovable Property Cadastre Information
System shall be used which is in effect on the day of issue of
the notification referred to in Section 8 of this Law. For the
calculation of a share of the alienation price, the data on the
extent of the undivided share of the joint property included in
the composition of the residential property, registered in the
State Immovable Property Cadastre Information System, shall be
used.
(5) The alienation price shall be in effect and used for
exercising the alienation right for a period of two years from
the day of issue of the notification referred to in Section 8 of
this Law.
(6) The alienation price calculated in accordance with the
procedures laid down in this Law shall not be subject to
contesting or appeal.
Section 8. Notification on the Land
to be Alienated and the Alienation Price
(1) After determination of the land to be alienated and
registration thereof in the State Immovable Property Cadastre
Information System and calculation of the alienation price, the
State Land Service shall prepare and send to apartment owners of
the apartment residential house and the owner of the plot of land
a notification on the land to be alienated and the alienation
price.
(2) The following shall be indicated in the notification:
1) the information of the State Immovable Property Cadastre on
the apartment residential house, the plot of land, the land to be
alienated, and the residential properties of the apartment
residential house;
2) the alienation price;
3) the share of the alienation price payable for each land
parcel or section of land parcel included in the land to be
alienated;
4) the distribution of the alienation price according to the
undivided shares of the plot of land if the land to be alienated
coincides with several plots of land;
5) the distribution of the alienation price according to the
undivided shares of the plot of land if the alienable land
belongs to several persons (joint owners);
6) the approximate corresponding share of the alienation price
of undivided share of joint property included in the composition
of each residential property;
7) the distribution of the alienation price according to the
undivided shares of the residential property if the residential
property belongs to several persons (joint owners);
8) the distribution of the alienation price according to the
undivided shares of the joint property of the residential house
included in the composition of the residential property;
9) the term in which the alienation price is in effect and can
be used for exercising the alienation right.
(3) After the issue of the notification, any changes in the
extent of the undivided share of the joint property included in
the composition of residential properties shall not change the
share of the alienation price calculated for each apartment
owner.
Chapter
III
Exercising of the Alienation Right
Section 9. Initiation of a Case on
Termination of Forced Shared Property
(1) A case on termination of forced shared property shall be
initiated by a sworn bailiff on the basis of an application of an
authorised person of the community of apartment owners of the
apartment residential house or at least one apartment owner of
the apartment residential house.
(2) An application for the initiation of a case may be
submitted to a sworn bailiff not later than six months from the
day of issue of the notification referred to in Section 8 of this
Law. The notification referred to in Section 8 of this Law shall
be attached to the application.
(3) A sworn bailiff shall initiate a case immediately after
receipt of the application referred to in Paragraph one of this
Section if:
1) the notification referred to in Section 8 of this Law is
attached to the application;
2) the application is submitted within the term indicated in
Paragraph two of this Section;
3) another sworn bailiff has not initiated a case on
termination of forced shared property regarding the same
apartment residential house.
(4) If the submitted application does not meet any of the
requirements referred to in Paragraph three of this Section, the
sworn bailiff shall not initiate a case and shall notify the
applicant of the detected deficiencies, returning the
notification referred to in Section 8 of the Law to the
applicant, if any has been attached to the application.
(5) Any expenses related to conducting of a case on
termination of forced shared property and the fee of the sworn
bailiff shall be covered from the State budget funds in
accordance with the procedures stipulated by the Cabinet.
Section 10. Activities of a Sworn
Bailiff after Initiation of a Case on Termination of Forced
Shared Property
(1) After initiation of a case on termination of forced shared
property, a sworn bailiff shall check the current information
available in State information systems on who are the apartment
owners of the apartment residential house and the owner of the
plot of land, and shall send them a notification on the
initiation of the case. The notification shall be sent also to
the authorised person of apartment owners of the apartment
residential house, if such authorised person is known.
(2) The notification on the initiation of the case on
termination of forced shared property shall contain the term by
which the apartment owners shall notify the sworn bailiff in
writing of the date, time, and place of the general meeting of
apartment owners, and information that, if the community of
apartment owners fails to take the decision on exercising the
alienation right within the term and in accordance with the
procedures laid down in this Law, the case on termination of
forced shared property will be terminated.
Section 11. Taking of the Decision
on Exercising the Alienation Right
(1) The decision on exercising the alienation right shall be
taken by apartment owners, participating and voting at the
general meeting of apartment owners, or by the apartment owner in
person or his or her authorised person, notifying the sworn
bailiff of own vote before the day of the general meeting.
(2) The general meeting of apartment owners of the apartment
residential house regarding the exercising of the alienation
right shall take place in conformity with the conditions for
convening of the general meeting of apartment owners and taking
of a decision laid down in the Law on Residential Properties,
insofar as it has not been laid down otherwise in this Law.
(3) The general meeting of apartment owners shall be convened
within one year from the day of issue of the notification
referred to in Section 8 of this Law.
(4) The date, time, and place of the general meeting of
apartment owners shall, not later than 40 days before the general
meeting, be coordinated by apartment owners or their authorised
person with the sworn bailiff whose record-keeping contains the
case on termination of forced shared property regarding the
specific apartment residential house. After coordination of the
date, time, and place of the general meeting, the sworn bailiff,
using the information available in State information systems,
shall draft a current list of residential properties of the
apartment residential house and their owners.
(5) The persons who have the right to convene the general
meeting of apartment owners in accordance with the Law on
Residential Properties shall, not later than 30 days before the
general meeting, invite each apartment owner in writing or
according to other procedures stipulated by the community of
apartment owners. The invitation shall contain the date, time,
place, and agenda of the general meeting.
(6) An apartment owner may announce own vote regarding the
matter of exercising the alienation right not earlier than 30
days and not later than one day before the general meeting in
person or through the authorised person, arriving at the office
of the sworn bailiff whose record-keeping contains the case on
termination of forced shared property. The voting notified to the
sworn bailiff shall not be subject to amendments or
revocation.
(7) If the owner of the respective apartment changes after the
voting referred to in Paragraph ten of this Section, the
previously notified voting regarding exercising of the alienation
right shall be binding on the acquirer of the residential
property.
(8) At the general meeting of apartment owners regarding
exercising of the alienation right, apartment owners are entitled
to vote if the general meeting is attended by the sworn bailiff
whose record-keeping contains the case on termination of forced
shared property regarding the specific apartment residential
house.
(9) At the general meeting of apartment owners regarding
exercising of the alienation right, apartment owners are entitled
to vote regardless of the number of apartment owners
participating at the general meeting.
(10) The decision on exercising the alienation right shall be
considered taken if, after counting the votes cast in accordance
with the procedures laid down in Paragraphs six and nine of this
Section, apartment owners who hold more than a half of all
residential properties located in the residential house have
voted "for".
Section 12. Activities of the Sworn
Bailiff, in Taking the Decision on Exercising the Alienation
Right
(1) In participating at the general meeting of apartment
owners, the sworn bailiff shall draft a deed on the voting of the
general meeting regarding exercising the alienation right,
indicating in this deed:
1) those apartment owners or their authorised persons who have
participated at the general meeting of apartment owners,
indicating the given name, surname, personal identity number, and
address of the place of residence of the natural person or the
name, registration number, legal address, representative, and
basis for representation of the legal person;
2) the vote cast by each apartment owner.
(2) The deed on the voting of the general meeting regarding
exercising the alienation right shall be signed by the sworn
bailiff, the chairperson and the minute-taker of the general
meeting of apartment owners.
(3) If the chairperson or the minute-taker of the general
meeting of apartment owners refuses to sign the deed referred to
in Paragraph one of this Section, a notation shall be made in the
deed, indicating the reasons for refusal, if any are made known.
The refusal to sign the deed shall not affect the validity
thereof.
(4) After the general meeting of apartment owners the sworn
bailiff shall, within 10 days, draft a deed on exercising the
alienation right, indicating:
1) those apartment owners or their authorised persons who have
participated in the voting for exercising the alienation right,
indicating the given name, surname, personal identity number, and
address of the place of residence of the natural person or the
name, registration number, legal address, representative, and
basis for representation of the legal person;
2) the vote cast by each apartment owner, indicating
separately those apartment owners who have voted for exercising
the alienation right before the day of the general meeting of
apartment owners in accordance with the procedures laid down in
Section 11, Paragraph six of this Law;
3) the decision of the community of apartment owners on the
matter of exercising the alienation right, indicating the
distribution of "for" and "against" votes;
4) if the decision "for" exercising the alienation right has
been taken, the date referred to in Section 8, Paragraph two,
Clause 9 of this Law until which the alienation price shall be
paid and details of the deposit account of the sworn bailiff to
which the payment shall be transferred.
(5) After signing the deed on exercising the alienation right,
the sworn bailiff shall notify the decision taken to the owner of
the plot of land and apartment owners of the apartment
residential house. If the decision "for" exercising the
alienation right has been taken, the notification shall include
the information referred to in Paragraph four, Clause 4 of this
Section.
Section 13. Consequences of Failure
to Notify a Sworn Bailiff of the General Meeting of Apartment
Owners
If a sworn bailiff does not receive a notification on the
date, time, and place of the general meeting of apartment owners
corresponding to the term indicated in Section 11, Paragraph
three of this Law, the sworn bailiff shall take the decision on
termination of the case and send the decision to the applicant
who has submitted the application referred to in Section 9,
Paragraph one of this Law. The decision on termination of the
case shall be taken by the sworn bailiff also if the general
meeting of apartment owners has been convened but the decision on
exercising the alienation right has not been taken until expiry
of the term indicated in Section 11, Paragraph three of this
Law.
Section 14. Procedures for the
Payment of Alienation Price and Consequences
(1) If the decision of the community of apartment owners on
exercising the alienation right is taken within the term
specified in Section 12, Paragraph four, Clause 4 of this Law,
the alienation price shall be paid into the deposit account of
the sworn bailiff.
(2) The alienation price shall be considered as paid if full
alienation price in one or several payments has been received in
the deposit account of the sworn bailiff within the term
specified in Section 12, Paragraph four, Clause 4 of this
Law.
(3) After receipt of full alienation price or expiry of the
term for the payment thereof, the sworn bailiff shall check own
deposit account whether the alienation price is paid and shall
draft a deed on payment of the alienation price.
(4) Copies of the deed on payment of the alienation price
shall be sent by the sworn bailiff to apartment owners of the
apartment residential house, their authorised person, if known,
and the owner of the plot of land.
(5) The alienation right shall be considered exercised if
apartment owners of the apartment residential house have taken
the decision on exercising the alienation right and have paid the
alienation price into the deposit account of the sworn bailiff
within the scope of the case on termination of forced shared
property conducted by the sworn bailiff in accordance with the
procedures and within the terms laid down by this Law.
(6) If the sworn bailiff establishes that the alienation right
has been exercised in accordance with the provisions of Paragraph
five of this Section, he or she shall notify the State Land
Service thereof in writing.
(7) If the alienation right has been exercised in accordance
with the provisions of Paragraph five of this Section and a
pledge right on the plot of land has been corroborated, the sworn
bailiff shall also notify the person in favour of whom the pledge
right on the plot of land has been corroborated of exercising of
the alienation right. If the place of residence of this person is
unknown, the information shall be published in the official
gazette Latvijas Vēstnesis.
(8) If the sworn bailiff establishes that the alienation right
has not been exercised in accordance with the provisions of
Paragraph five of this Section, the sworn bailiff shall, without
undue delay, refund the payments made into the deposit account
for exercising the alienation right to the payers thereof and
shall terminate the case on termination of forced shared
property.
Section 15. Contracts for Payment of
the Alienation Price
(1) On the basis of a decision of the community of apartment
owners, contracts may be concluded on behalf of apartment owners
of the apartment residential house in order to receive funding
for payment of the alienation price.
(2) The decision on conclusion of a contract shall be
considered as taken if apartment owners of more than a half of
all residential properties located in the apartment residential
house have voted "for".
(3) Any obligations arising from the contracts referred to in
Paragraph one of this Section shall be shared and the share of
obligations of each apartment owner shall correspond to the
extent of the undivided share of the joint property included in
the composition of the residential property of the apartment
owner.
(4) As regards the obligations arising from the contracts
referred to in Paragraph one of this Section, no liability shall
apply to those apartment owners who have paid into the deposit
account of the sworn bailiff the share of the alienation price
corresponding to the extent of undivided share of joint property
included in the composition of their residential property.
(5) The term for full performance of the obligations arising
from the contracts referred to in Paragraph one of this Section
may not be shorter than three years for those persons who have
not agreed to conclusion of such contracts. In such cases, the
annual extent of performance of the obligations shall be
determined proportionally to the overall term of performance.
Section 16. State Aid for Obtaining
Funding for Exercising the Alienation Right
(1) The State may provide aid to owners of an apartment
residential house in the matters related to obtaining funding for
payment of the alienation price.
(2) The types, extent, and conditions for granting aid shall
be determined by the Cabinet. The Cabinet regulation are issued
if funding for granting aid is provided for in the annual law On
the State Budget.
Section 17. Consequences of
Non-exercising of the Alienation Right
(1) The alienation right shall be considered not exercised if
after initiation of a case on termination of forced shared
property:
1) the general meeting of apartment owners has not been
convened within the term specified in Section 11, Paragraph three
of this Law for taking of the decision on exercising the
alienation right;
2) the decision on exercising the alienation right is not
taken at the general meeting or general meetings of apartment
owners within the term specified in Section 11, Paragraph five of
this Law;
3) the alienation price has not been paid into the deposit
account of the sworn bailiff in accordance with the procedures
laid down in Section 14, Paragraph two of this Law.
(2) If the alienation right has not been exercised, the sworn
bailiff shall terminate the case on termination of forced shared
property in accordance with the procedures laid down in this Law.
Termination of the case shall not serve as an obstacle for
reopening the case in accordance with the procedures laid down in
this Law.
(3) Apartment owners of an apartment residential house may
initiate new process of exercising the alienation right not
earlier than one year after termination of the case on
termination of forced shared property.
Chapter
IV
Cadastral Survey of the Land to be Alienated, Corroboration of
the Ownership Rights to the Land to be Alienated in the Land
Register, and Payment of the Alienation Price to the Former Land
Owner
Section 18. Cadastral Survey of the
Land to be Alienated
(1) If the land to be alienated coincides with one or more
land parcels registered in the State Immovable Property Cadastre
Information System, cadastral survey of the land to be alienated
shall not be performed.
(2) If the land to be alienated partially coincides with one
or more land parcels registered in the State Immovable Property
Cadastre Information System, the State Land Service shall
organise cadastral survey for division of the plot of land,
separating the land to be alienated or a section thereof from the
plot of land. Apartment owners of the apartment residential house
and owner of the plot of land shall be informed of cadastral
survey activities of the land to be alienated; however, their
failure to arrive or objections shall not serve as an obstacle
for the performance of cadastral survey and the registration of
the surveyed land parcel and cadastral survey data in the State
Immovable Property Cadastre Information System.
(3) If the area of the land to be alienated which is indicated
in the notification referred to in Section 8 of this Law changes
due to the cadastral survey, it shall not affect the amount of
the alienation price and the proportional distribution thereof
among several owners of plots of land.
(4) The cadastral survey of the land to be alienated and, if
any, the section of land remaining with the land owner shall be
performed using the State budget funds not later than within nine
months from the day of exercising the alienation right in
accordance with the provisions of Section 14, Paragraph five of
this Law.
(5) The State Land Service shall send a notification regarding
the results of the cadastral survey of the land to be alienated
and, if any, the section of land remaining with the land owner to
the sworn bailiff whose record-keeping contains the case on
termination of forced shared property regarding the specific
apartment residential house after the data on the cadastral
survey of the land to be alienated and, if any, the section of
land remaining with the land owner is registered in the State
Immovable Property Cadastre Information System.
(6) The procedures for the cadastral survey of the land to be
alienated shall be determined by the Cabinet.
Section 19. Basis for Corroboration
of the Ownership Rights of Apartment Owners to the Land to be
Alienated
(1) The decision of the community of apartment owners on
exercising the alienation right and payment of the alienation
price in accordance with the procedures and within the terms laid
down in this Law shall serve as a legal basis for corroboration
of the ownership rights of the apartment owners to the alienated
land in the Land Register.
(2) The ownership rights of the apartment owners shall be
corroborated in the Land Register in accordance with the
procedures laid down in the Land Register Law insofar as it is
not laid down otherwise in this Law.
Section 20. Corroboration Request
and the Appendices Thereof
(1) After receipt of the notification referred to in Section
18, Paragraph five of this Law, the sworn bailiff whose
record-keeping contains the case on termination of forced shared
property, using the current data of the State Unified
Computerised Land Register and the State Immovable Property
Cadastre Information System obtained during data exchange between
information systems, shall submit corroboration requests signed
in accordance with the procedures laid down in the laws and
regulations regarding electronic documents and request:
1) to separate the land to be alienated from the plot of land,
specifying the land areas remaining with the owner of the plot of
land, to attach the land to be alienated to the division of the
Land Register of the apartment residential house, and to make an
property right notation in relation to the apartment owners whose
residential properties are not entered in the Land Register;
2) as regards residential properties entered in the Land
Register, to attach the undivided share of the joint property of
the land to be alienated which corresponds to the undivided share
size of the joint property of the specific residential property,
the composition of the respective residential property and to
corroborate the ownership rights of apartment owners. If the data
on undivided shares of joint property included in the composition
of the residential property entered in the Land Register and
registered in the State Immovable Property Cadastre Information
System differs, changes in divisions of the Land Registers of
residential properties are made in accordance with the data
registered in the State Immovable Property Cadastre Information
System.
(2) If the land to be alienated coincides with a plot of land,
the sworn bailiff shall request attaching the land to be
alienated to the Land Register division of the apartment
residential house and shall apply Paragraph one, Clause 2 of this
Section.
(3) The sworn bailiff shall attach to the corroboration
request a deed drawn up in accordance with the procedures laid
down in this Law regarding:
1) exercising of the alienation right (Section 12, Paragraph
four of this Law);
2) payment of the alienation price (Section 14, Paragraph
three of this Law).
(4) Consent of the person against whom the corroboration is
directed as well as consent of any other third parties shall not
be required for submission of the corroboration request.
Examination of the corroboration request shall not be hindered by
guarantees and securities of rights entered in the Land
Register.
(5) In corroborating the ownership rights of apartment owners
to the land to be alienated in the Land Register, and also in
making changes to the Land Register division of the owner of the
plot of land, apartment owners and the owner of the plot of land
shall be released from payment of the State fees and processing
fees for corroboration of the ownership rights of apartment
owners and amending of the rights of owners of the plot of land
in the Land Register.
(6) Forms of the corroboration request shall be approved by
the Cabinet.
Section 21. Conditions for the
Corroboration of Ownership Right of Apartment Owners to the Land
to be Alienated in the Land Register
(1) In corroborating the ownership rights of apartment owners
to the land to be alienated in the Land Register, the land to be
alienated shall be transferred into ownership of apartment owners
free from any encumbrances and charges imposed on the plot of
land (in the section in which it coincides with the land to be
alienated) due to liabilities (debt liabilities, pledge rights,
encumbrances adopted as a condition at obtaining the property,
and also maintenance, inheritance contracts, real charges,
alienation rights, building rights, lease and use rights), and
also free from prohibitions imposed within the framework of
criminal proceedings, insolvency proceedings, and civil
proceedings. This condition shall not apply to real
servitudes.
(2) In corroborating the ownership rights of apartment owners
to the land to be alienated in the Land Register, the
encumbrances, charges, and prohibition notations referred to in
Paragraph one of this Section shall be deleted without consent of
those persons in whose favour such notations have been
corroborated.
(3) In corroborating the ownership rights of apartment owners
to the land to be alienated in the Land Register, the
restrictions on obtaining land ownership specified in the law On
Land Reform in the Cities of the Republic of Latvia and the law
On Land Privatisation in Rural Areas shall not apply.
(4) In corroborating the ownership rights of apartment owners
to the land to be alienated in the Land Register, the special
procedures laid down in the law On Immovable Property Tax for the
registration of change of the immovable property owner in the
Land Register shall apply.
(5) Concurrently with corroboration of the ownership rights of
apartment owners in the Land Register, all legal relations
(including lease), rights (including pre-emptive) and obligations
arising from existence of forced shared property between the
apartment residential house and the plot of land, except for
those specified in this Law, shall cease.
(6) For the residential properties not entered in the Lang
Register, the respective undivided share of the joint property of
land parcel shall be added in the State Immovable Property
Cadastre Information System after adding the land parcel to the
Land Register division of the apartment residential house.
Section 22. Protection of the
Interests of the Persons in Whose Favour a Pledge Right on the
Plot of Land has been Corroborated
(1) During the process of exercising the alienation right, the
interests of the person in whose favour the pledge right on the
plot of land has been corroborated shall be observed. Exercising
of the alienation right may not in itself serve as the basis for
requesting early fulfilment of obligations which are secured with
the plot of land or for believing that the abovementioned
obligations are being violated.
(2) The owner of the plot of land and the person in whose
favour the pledge right to the plot of land has been corroborated
may agree on distribution of the alienation price or a share of
the alienation price (if the land to be alienated coincides with
several plots of land). If there are several persons in whose
favour the pledge right to the plot of land has been corroborated
and the owner of the immovable property wishes to agree on
distribution of the alienation price, he or she shall reach an
agreement with all these persons.
(3) In the case referred to in Paragraph two of this Section,
the amount to be disbursed to the person in whose favour the
pledge right to the plot of land has been corroborated shall be
used with regard to early extinguishing of obligations without
changing the conditions for the fulfilment of the obligations
unless the parties agree otherwise.
(4) If the owner of the plot of land and the person in whose
favour the pledge right to the plot of land has been corroborated
have agreed on distribution of the alienation price or a share
thereof, these persons shall submit to the sworn bailiff a
notification regarding distribution of the alienation price or a
share thereof until corroboration of the ownership rights of
apartment owners in the Land Register. The notification shall
indicate what amount of the alienation price or a share thereof
is to be disbursed to the owner of the plot of land and the
person in whose favour the pledge right to the plot of land has
been corroborated, indicating the bank account to which the
specified amounts are to be transferred.
(5) A sworn notary shall certify the authenticity of the
signatures of the persons on the notification regarding
distribution of the alienation price or a share thereof or the
notification shall be signed with a secure electronic
signature.
Section 23. Payment of the
Alienation Price to the Former Land Owner
(1) After corroboration of the ownership right of apartment
owners of the apartment residential house to the land to be
alienated in the Land Register, a sworn bailiff shall, without
undue delay, disburse the alienation price to the former owner of
the plot of land.
(2) In order to disburse the alienation price or a share
thereof to the former owner of the plot of land, the sworn
bailiff shall contact this person and establish his or her
current account number opened with a credit institution. If the
former owner of the plot of land does not provide information on
the current account number opened with a credit institution, the
alienation price shall be stored in the deposit account of the
sworn bailiff until the moment when the person himself or herself
notifies the sworn bailiff of his or her current account number
opened with a credit institution.
(3) If the land to be alienated consists of several land
parcels or sections of land parcels from different plots of land,
when disbursing the alienation price to the former owners of the
plot of land, the sworn bailiff shall observe the distribution of
the alienation price among the owners of the plots of land (joint
owners) indicated in the notification referred to in Section 8 of
this Law.
(4) If the land to be alienated coincides with a plot of land
to which a pledge right has been corroborated in favour of
another person and the sworn bailiff has received a notification
regarding distribution of the alienation price or a share
thereof, the sworn bailiff shall disburse the alienation price or
a share thereof due to the respective owner of the plot of land
in accordance with the provisions of the abovementioned
notification.
(5) If the land to be alienated coincides with a plot of land
to which a pledge right has been corroborated in favour of
another person and the sworn bailiff has not received a
notification regarding distribution of the alienation price or a
share thereof, the alienation price shall be paid in accordance
with the procedures laid down in Section 24 of this Law.
(6) If a prohibition notation regarding imposition of
attachment on the property has been entered in the respective
division of the Land Register with regard to the plot of land,
the sworn bailiff shall coordinate the disbursement of the
compensation with the person directing the proceedings.
(7) The proceeds from alienation of the plot of land alienated
in accordance with this Law is subject to the special procedures
for the imposition of personal income tax laid down in the law On
Personal Income Tax.
Section 24. Payment of the
Alienation Price if the Land to be Alienated Coincides with a
Plot of Land to which a Pledge Right has been Corroborated in
Favour of Another Person and the Sworn Bailiff has not Received a
Notification Regarding Distribution of the Alienation Price or a
Share Thereof
(1) The alienation price or a share of the alienation price
due to the respective owner of the plot of land shall be stored
in the deposit account of the sworn bailiff for a period of three
years from corroboration of the ownership rights of apartment
owners to the land to be alienated in the Land Register, and the
sworn bailiff shall notify the former owner of the plot of land
and the person in whose favour the pledge right to the plot of
land has been corroborated.
(2) The sworn bailiff shall make a disbursement from the
deposit account prior to the term referred to in Paragraph one of
this Section on the basis of an execution document and taking
into account that the alienation price or a share thereof is to
be distributed in accordance with the same procedures as laid
down in the Civil Procedure Law for distributing the money
received from the sale of immovable property encumbered with a
pledge, or on the basis of a notification regarding distribution
of the alienation price or a share thereof. Disbursement based on
the notification regarding distribution of the alienation price
or a share thereof shall only be acceptable in the amount due to
the persons referred to in the notification after covering the
claims that are to be given preference in comparison with the
claims of these persons.
(3) If an attachment is imposed on the property of the former
plot of land, the alienation price or a share thereof stored in
the account of the sworn bailiff shall be transferred to the
person directing the proceedings to act in accordance with the
provisions of the Criminal Procedure Law.
(4) If insolvency proceedings of the former owner of the
immovable property have been declared, the alienation price or a
share thereof stored in the account of the sworn bailiff shall be
transferred to the insolvency administrator to act in accordance
with the provisions of the Insolvency Law. Extinguishing of the
pledge right in the cases specified in this Law shall not in
itself affect the right of the person in whose favour the pledge
right to the plot of land was corroborated as a creditor in
insolvency proceedings in conformity with the principle of the
preservation of rights enforced in Section 6 of the Insolvency
Law.
(5) At the beginning of the last year of the term referred to
in Paragraph one of this Section, the sworn bailiff shall send to
the declared place of residence or legal address of the former
owner of the plot of land and the person in whose favour the
pledge right to the plot of land has been corroborated an
invitation to agree on distribution of the alienation price or a
share thereof and to submit a notification regarding distribution
of the alienation price or a share thereof and shall inform of
the consequences referred to in Paragraphs six and seven of this
Section.
(6) If the alienation price or a share thereof stored in the
deposit account of the sworn bailiff is not disbursed in the
cases provided in this Law prior to expiry of the term referred
to in Paragraph one of this Section, the sworn bailiff shall
disburse the stored alienation price or a share thereof to the
former owner of the plot of land in accordance with the
procedures laid down in Section 23, Paragraph two of this
Law.
(7) Starting from the last year of the term referred to in
Paragraph one of this Section, the restrictions referred to in
Section 22, Paragraph one of this Law shall not be applicable to
the person in whose favour the pledge right to the plot of land
has been corroborated.
Chapter V
Obtaining of Information and Ensuring of Communication
Section 25. Obtaining of Information
Required for a Sworn Bailiff to Conduct a Case
(1) State institutions shall provide a sworn bailiff with the
information required for conducting a case on termination of
forced share property free of charge from the following State
information systems:
1) the Register of Natural Persons;
2) the State Immovable Property Cadastre Information
System;
3) the State Unified Computerised Land Register.
(2) A sworn bailiff has the right to receive free of charge
any information required for the purpose of conducting a case
also from other State and local government institutions.
Section 26. Right to Become
Acquainted with the Case Materials of a Sworn Bailiff and to
Request Document Derivatives Therefrom
Owners of the plot of land, apartment owners of the apartment
residential house as well as the manager of the abovementioned
apartment residential house and the authorised person referred to
in Section 5, Paragraph one of this Law may become acquainted
with the case materials of a sworn bailiff regarding termination
of forced shared property and may request document
derivatives.
Section 27. Ensuring of
Communication
(1) If this Law provides for a sworn bailiff to contact any
person referred to in the Law (apartment owner, owner of the plot
of land, and other persons), the provisions of the Law on
Notification shall apply.
(2) If a natural person is an apartment owner of an apartment
residential house and he or she does not have a declared address
of residence (additional address) and he or she has not expressed
a wish to receive documents electronically, the State Land
Service and the sworn bailiff shall send documents to the address
of the apartment of the apartment residential house owned by or
in possession of this person.
Transitional
Provision
Until 1 January 2025, the State Land Service shall calculate
the alienation price specified in Section 7, Paragraph four of
this Law as follows:
1) from 1 January 2023 until the moment of approval of the
Cabinet regulation regarding the cadastral value base for 2025,
2026, 2027, and 2028 - in accordance with the information
calculated and published by the State Land Service on the
projected cadastral values of land parcel and a section of land
parcel which have been developed in accordance with the immovable
property transaction information as on 1 July 2019;
2) from the moment of approval of the Cabinet regulation
regarding the cadastral value base for 2025, 2026, 2027, and 2028
until 31 December 2024 - in accordance with the information
calculated and published by the State Land Service on the
projected cadastral values of land parcel and a section of land
parcel which have been determined in accordance with the
immovable property transaction information as on 1 July 2022.
The Law shall come into force on 1 January 2023.
The Law has been adopted by the Saeima on 25 November
2021.
President E. Levits
Rīga, 7 December 2021
1The Parliament of the Republic of
Latvia
Translation © 2023 Valsts valodas centrs (State
Language Centre)