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 this Law

The following terms are used in this Law:

1) multi-apartment house - a residential house where pursuant to the house inventory plan 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 detached from the remainder of the multi-apartment house, that is marked as an apartment in the house inventory plan and that has belonging to it its walls, internal partition walls, ceilings, floors, its finish thereto, windows, doors, pipes, chimneys, 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 boundaries of the complex of premises, as well as auxiliary buildings and structures 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) common apartment - an apartment, the residential premises of which are used on the basis of individually entered into residential tenancy contracts and the auxiliary premises of which are transferred for collective usage;

5) part of house in joint property - a part of a multi-apartment house comprising of external walls, apartments, the partition walls of non-residential premises or artist's workshops, roof, attic, staircases, basements, as well as windows, doors, communications, facilities and other functionally indivisible elements associated with the use of the house, that 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 existing in the house;

7) [7 April 2004];

8) artist's workshop - non-residential premises or a complex of non-residential premises existing in a multi-apartment house, which are marked as an artist's workshop in the house inventory plan and which are not functionally associated with any of the apartments existing in the house and which have belonging to them their walls, internal partition walls, ceilings, floors, their finish thereto, windows and doors, pipes, chimneys, 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 boundaries of the complex of premises, as well as auxiliary buildings and structures existing outside the artist's workshop and functionally connected thereto (basement, toilet, shed);

9) non-residential premises - premises or a complex of premises existing in a multi-apartment house, which are marked as non-residential premises in the house inventory plan and which are not functionally associated with any of apartments or artist's workshops existing in the house and which have belonging to them their walls, internal partition walls, ceilings, floors, their finish thereto, windows and doors, pipes, chimneys, 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 boundaries of the complex of premises, as well as auxiliary premises 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 rights to an aliens passport issued by the Republic of Latvia;

11) privatisation - a set of activities, in the result of which legal persons and natural persons acquire apartments, non-residential premises, artist's workshops, single dwellings or multi-apartment houses existing in State or local government residential houses;

12) technical execution of privatisation - a set of legal and organisational 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 house inventory plan and auxiliary buildings functionally connected thereto;

15) transfer of 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 existing 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 technical activities to be performed in order to specify the plot of land that is functionally necessary to a residential house and to register the house or the house and land in the Land Register until the commencement of registration 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, maintenance and management of which is partly or completely performed for the funds of local the government budget and in which apartments are rented in accordance with the procedures specified in 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 special or higher education at 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) plot of land that is functionally necessary to a residential house to be privatised - land, on which a residential house has been built, elements of infrastructure, utilities and communications necessary for the maintenance, management and functioning thereof, which have been indicated in the detail plan of such plot of land; and

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]

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 shall be to develop the immovable property market and to promote the putting into order of residential houses, in protecting the interests of residents.

Section 3. Openness and Voluntarity of Privatisation

(1) Privatisation shall be performed openly by informing society regarding privatisation objects and explaining the conditions and procedures of 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 person and physical person has the right to receive information regarding privatisation objects, conditions and procedures of privatisation.

(4) Tenants and lessees of apartments, artist's workshops existing in State and local government multi-apartment houses, as well as single dwellings shall privatise them voluntarily.

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 entering into a purchase contract or by receiving the privatisation object into ownership free of charge and entering into an agreement.

(2) A privatisation object may 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 in a public auction; or

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

Section 5. Means and Procedures of Payment

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

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

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 - Latvian citizens, non-citizens and persons who have received a permanent residence permit; and

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

[18 May 2006]

Chapter II
Privatisation Object

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

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

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

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

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

(5) If a single dwelling or a multi-apartment house is located on land owned by the State or a local government, which is completely or partly located within the red lines of roads, streets or driveways marked in the spatial planning approved by a local government city council (county, parish council), the single dwelling or the undivided share thereof, the multi-apartment house or an apartment, non-residential premises or an artist's workshop existing in the residential house shall be regarded a privatisation object together with the corresponding undivided share of the part of the house in joint property. The owner of the privatised object shall have the lease rights of a plot of land owned by the State or the local government for 99 years.

(6) If a single dwelling or a multi-apartment house is completely or partly located on land owned by the State or a local government, on which buildings that cannot be privatised in accordance with the procedures of this Law are also located, and pursuant to the territorial development plan of a local government approved by the local government city council (county, parish council) it is not permissible to separate a plot of land functionally necessary to a residential house from the plot of land belonging to the State or local government, the multi-apartment house or an apartment, non-residential premises or an artist's workshop existing in the residential house shall be regarded a privatisation object together with the corresponding undivided share of the part of the house in joint property.

[27 June 2002; 18 May 2006]

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

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

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

Section 8.¹ Decision Regarding Commencement of Privatisation of a Residential House

(1) The Construction, Energy and Housing State Agency shall take a decision regarding commencement of privatisation of a State residential house.

(2) A local government city council (county, parish council) shall take a decision regarding commencement of privatisation of a local government residential house.

[11 June 1997; 20 November 2003; 21 February 2008]

Chapter III
Conditions to be Complied with in Offering an Separate Apartment, Non-residential Premises, Artist's Workshop, Single Dwelling or Multi-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 a local government and any other person, the part of the joint property belonging to the State or the local government shall be privatised as apartments, artist's workshops or non-residential premises if previously the property rights of the State or the local government to individual apartments, artist's workshops or non-residential premises have been specified in accordance with the provisions of Section 24 of the Law On Residential Property and Clause 20 of the Transitional 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 - apartments, artist's workshops or non-residential premises - has not been reached among joint owners in accordance with Clause 20 of the Transitional Provisions of this Law, the State or a local government shall sell the undivided share of the joint property belonging thereto in an auction in accordance with a respective Cabinet order or a decision of the relevant local government city council (county, parish council), the Law On Alienation of State and Local Government Property and this Law.

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

[16 December 1999]

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

A single dwelling or undivided share thereof, or a multi-apartment house, as well as an apartment, non-residential premises and artist's workshop in a multi-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; or

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 a multi-apartment house, an apartment, non-residential premises and an artist's workshop, which has been recognised as a cultural monument, as well as an apartment, non-residential premises, an artist's workshop, a single dwelling or a multi-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 shall be privatised if the status of service apartment has been previously withdrawn.

Chapter IV
Sequence, in Which Single Dwellings or Multi-apartment Houses, Apartments, Non-residential Premises and Artist's Workshops that are Located in Multi-apartment Houses Built on Land Belonging to the State or Local Government shall be Privatised

Section 13. Sequence, in Which an Apartment or Single Dwelling, for Utilisation of which a Tenancy Contract of Residential Space has been Entered into, shall be Privatised

(1) Any apartment, for utilisation of which a tenancy contract of residential space has been entered into (hereinafter - rented apartment), shall be offered for privatisation to the tenant of such apartment and his or her family members.

(2) The 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 confirmed notarially or by a privatisation commission regarding who will privatise the rented apartment. If the tenant of the apartment and his or her family members want to privatise the apartment as a joint property, the subsequent procedures for utilisation of residential premises shall be provided for in the referred deed of agreement; or

2) a claim regarding termination of the tenancy contract 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 who 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 the case provided for in Paragraph four of this Section.

(4) The person indicated in Section 6 of this Law may privatise the rented apartment of a tenant with a 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 confirmed notarially or by privatisation commission with the person who wants to privatise the referred to apartment. In such case the tenant shall preserve the rights of utilisation of residential space unless provided otherwise in the agreement.

(5) A single dwelling, regarding utilisation of which a tenancy contract of residential space has been entered into (hereinafter - 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 Privatisation of Common Apartments

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

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

(3) A common apartment may be privatised if:

1) the tenants of the apartment and their family members enter into an agreement confirmed notarially or by a privatisation commission regarding who will privatise the apartment. If tenants of the apartment and their family members want to privatise the apartment as a joint property, the subsequent procedures for utilisation of residential premises shall be provided for in the referred deed of agreement;

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

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

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

1¹) the tenants of the common apartment and their family members shall enter into a notarily or privatisation commission certified agreement regarding the fact, which one of them shall privatise the undivided share of the common apartment;

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

3) an agreement with a State or local government authorised institution regarding subsequent procedures for utilisation of the common apartment has been entered into.

(4) If tenants and their family members do not reach an agreement regarding who will privatise the common 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 common apartment in future in conformity with the procedures specified in this Law, except the case provided for in Paragraph five of this Section.

(5) The person indicated in Section 6 of this Law may privatise the common 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 confirmed notarially or by a privatisation commission with the person who wants to privatise the referred to apartment. In such case the tenant shall preserve the right of utilisation of residential space unless provided otherwise in the agreement.

(6) If separate residential premises of a common apartment have not been rented, a tenant (tenants) of the common apartment and his or her family members shall privatise the entire common 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 Utilisation of which a Tenancy Contract of Residential Space has not been Entered into

(1) An apartment, regarding utilisation of which a tenancy contract of residential space has not been entered into (hereinafter - unrented apartment), shall be offered for privatisation to the public in an open auction. The following natural persons shall be the first to participate therein:

1) those who rent residential space in denationalised houses or houses returned to the lawful owners on the basis of a tenancy contract of residential space, which has been entered into prior to denationalisation or returning of such houses to former owners, and against which claims have been brought to the court regarding termination of the tenancy contract of residential space 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; and

2) those who are to be evicted from a denationalised house or a house returned to the lawful owners 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 any of the persons referred to in Paragraph one of this Section has not applied to privatise an unrented apartment, the following natural persons who have applied to an open auction shall participate concurrently in the auction:

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

2) those who rent residential space in a denationalised house or a house returned to a lawful owner or a house, regarding which a relevant decision regarding return to the lawful owner has been taken or regarding which a decision regarding restoration of ownership rights has been taken, or in a house, the former owner of which or heirs thereof have submitted an application regarding 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 contract has been entered into 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) those who rent residential space in a common apartment for more than five years;

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

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

(3) If any of the persons referred to in Paragraphs one and two of this Section has not applied to privatise an unrented apartment, the natural persons who have property compensation certificates and who have applied to an open auction shall participate in the auction.

(4) If any of the persons referred to in Paragraphs one, two and three of this Section has not applied to privatise an unrented apartment, the natural persons and legal persons - owners of property compensation certificates of any type who have applied to an open auction - shall participate in the auction.

(5) A person who has privatised an 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 a non-rented apartment only once.

(7) A single dwelling, regarding utilisation of which a tenancy contract of residential space has not been entered into (hereinafter - unrented single dwelling), shall be privatised in conformity with the provisions of this Section.

(8) An unrented local government apartment or a single dwelling shall be offered for privatisation in an open auction for lats with a decision of the local government city council (county, parish council) and an unrented State apartment or a single dwelling - with a decision of the Construction, Energy and Housing State Agency.

[7 April 2004; 24 February 2005; 21 February 2008]

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

(1) A multi-apartment house where apartments, non-residential premises and artist's workshops are not rented or leased (hereinafter - unrented multi-apartment house) shall be offered for privatisation as one whole object. A decision regarding privatisation of the unrented multi-apartment house as one whole object shall be taken by a local government city council (county, parish council) or the Construction, Energy and Housing State Agency.

(2) An unrented multi-apartment house shall be offered for privatisation to the public as one whole object in an open auction.

(3) [24 February 2005]

(4) [24 February 2005]

[11 June 1997; 20 November 2003; 24 February 2005; 21 February 2008]

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; or

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 regulatory enactments. This provision shall not apply to an artist's workshop, regarding utilisation of which a lease contract has been entered into 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 the time period of 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 date of the time period of the lease contract in conformity with the procedures specified in this Law.

(4) An artist's workshop, lessee of which is not entitled to privatise it, as well as an artist's workshop, regarding which a lease contract of non-residential premises has not been entered into (hereinafter - unleased artist's workshop), shall be offered for privatisation in an open auction only to artists - 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 utilisation of which a lease contract of non-residential premises has been entered into (hereinafter - 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 entered into 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; and

4) taxes have been paid.

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

(4) If any person who has property compensation certificates has not applied to privatise the non-residential premises referred to in Paragraph three of this Section, such natural persons and legal persons - owners of property compensation certificates of any type who have applied to an open auction - shall participate in the 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 Multi-apartment Houses, as well as Apartments, Non-residential Premises and Artist's Workshops that are Located in a Multi-apartment House Built on Land Belonging to Natural Persons or Legal Persons

Section 19. Sequence for Privatisation of a 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 confirmed notarially or by a privatisation commission regarding who will privatise the rented apartment. If the tenant of the apartment and his or her family members want to privatise the apartment as a joint property, the subsequent procedures for utilisation of residential premises shall be provided for in the referred deed of agreement;

2) a claim regarding termination of the tenancy contract 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 who 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 the future in conformity with the procedures specified in this Law, except the case provided for in Paragraph four of this Section.

(4) An owner of a plot of land on whose land a 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 confirmed notarially or by a privatisation commission with the person who wants to privatise the referred to apartment.

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

[22 August 1996; 7 May 1998]

Section 20. Sequence for Privatisation of a Common Apartment

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

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

(3) A common apartment may be privatised if:

1) tenants of the apartment and their family members enter into an agreement confirmed notarially or by a privatisation commission regarding who will privatise the apartment. If the tenants of the apartment and their family members want to privatise the apartment as a joint property, the subsequent procedures for utilisation of residential premises shall be provided for in the referred deed of agreement; or

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

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

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

1¹) the tenants of the common apartment and their family members shall enter into a notarily or privatisation commission certified agreement regarding the fact, which one of them shall privatise the undivided share of the common apartment;

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

3) an agreement with a State or local government authorised institution regarding subsequent procedures for utilisation of the common apartment has been entered into.

(4) If tenants and their family members do not reach an agreement regarding who will privatise the common 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 common apartment in the future in conformity with the procedures specified in this Law, except the case provided for in Paragraph five of this Section.

(5) An owner of a plot of land on whose land a 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 confirmed notarially or by a privatisation commission with the person who wants to privatise the referred to apartment.

(6) If separate residential premises of a common apartment have not been rented, a tenant (tenants) of the common apartment and his or her family members shall privatise the entire common 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 an Unrented Apartment

(1) An unrented apartment shall be offered for privatisation to the public in an open auction. At first the following natural persons shall participate therein:

1) who rent residential space in denationalised houses or houses returned to the lawful owners on the basis of a tenancy contract of residential space, which has been entered into 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 tenancy contract of residential space 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; and

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 any of the persons referred to in Paragraph one of this Section has not applied to privatise an unrented apartment, the following natural persons who have applied to an open auction shall participate concurrently in the auction:

1) who rent residential space in a 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 regarding return to the lawful owner has been taken or regarding which a decision regarding restoration of ownership rights has been taken, or in a house, the former owner of which or heirs thereof have submitted an application regarding 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 contract has been entered into 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 common apartment for more than five years;

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

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

(3) If any of the persons referred to in Paragraphs one and two of this Section has not applied to privatise an unrented apartment, the natural persons who have property compensation certificates and who have applied to an open auction shall participate in the auction.

(4) If any of the persons referred to in Paragraphs one, two and three of this Section has not applied to privatise an unrented apartment, the natural persons and legal persons - owners of property compensation certificates of any type who have applied to an open auction - shall participate in the auction.

(5) A person who has privatised an 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 an unrented apartment only once.

(7) An owner of a plot of land on whose land a residential house has been built has the rights to privatise one unrented apartment, which exists in the house and is offered for privatisation to the public, upon his or her choice 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 regarding privatisation of an unrented apartment in an open 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 the land owner has previously presented to the privatisation commission. In privatising any other privatisation object provided for in this Law, the owner of the plot of land shall have to observe the sequence and the procedures of privatisation specified in this Law. An assignee of the rights of the owner of the plot of land does not have the rights referred to in this Law if the previous owner of the plot of land has already used them.

(8) An unrented local government apartment or a single dwelling shall be offered for privatisation in an open auction for lats with a decision of the local government city council (county, parish council) and an unrented State apartment or a single dwelling - with a decision of the Construction, Energy and Housing State Agency.

[7 April 2004; 24 February 2005; 21 February 2008]

Section 22. Sequence for Privatisation of an Unrented Single Dwelling or an Unrented Multi-apartment House

(1) An unrented single dwelling shall be at first offered for privatisation to an owner of a plot of land - a natural person or a legal person on whose land a residential house has been built. If an unrented single dwelling is located on 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 plot of land has the rights to privatise an unrented single dwelling. If land owners agree to privatise the house as a joint property, they shall enter into an agreement confirmed notarially or by a privatisation commission. The procedures for utilisation of the referred to single dwelling shall be provided for in the deed of agreement. If an unrented single dwelling is concurrently located on land of the State or local governments and a natural or a legal person, the privatisation commission shall offer the house for privatisation to the land owner - natural or legal person.

(2) If an owner of a plot of land refuses to privatise the single dwelling referred to in Paragraph one of this Section, it shall be offered for privatisation to the public in an open auction for lats.

(3) An unrented multi-apartment house shall be offered for privatisation as one whole object. A decision regarding privatisation of an unrented multi-apartment house as one whole object shall be taken by a local government city council (county, parish council) or the Construction, Energy and Housing State Agency.

(4) An unrented multi-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 a plot of land refuses to privatise the referred to multi-apartment house, the privatisation commission shall offer it for privatisation to the public in an open auction for lats.

(5) [24 February 2005]

(6) An owner of a plot of land shall privatise an unrented single dwelling for certificates and an unrented multi-apartment house - for lats.

[11 June 1997; 20 November 2003; 24 February 2005; 21 February 2008]

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

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

Section 24. Sequence for Privatisation of Non-residential Premises

A leased and unleased non-residential premises (except artist's workshop) that are located in a multi-apartment house, which is built on land of a natural or a 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 multi-apartment houses, as well as multi-apartment houses with non-residential premises shall be evaluated and offered for privatisation.

[7 May 1998]

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

(1) The privatisation commission shall organise and perform preparation of the documents (inventory files of a residential house, documents confirming land ownership rights, tenancy contracts of the residential premises, 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 multi-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 the 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; and

4) cadastral value of the plot of land, 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; and

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 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 a decision regarding reduction of the initial auction price.

(5) In specifying the initial auction price of non-residential premises (except 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 a decision regarding reduction of the initial auction price.

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

[26 October 2000]

Section 28. Specification of the Area of a Plot of Land to be Privatised or Transferred for Lease

The area of a plot of land, which is to be privatised or transferred for lease for 99 years and is necessary for the functioning of a residential house, and boundaries thereof shall be determined in accordance with the procedures specified in the Law On the State and Local Government Land Ownership Rights and Recording of Such Rights in Land Registers.

[7 May 1998]

Chapter VII
Notification Regarding Privatisation and Provision of Answer Thereto

Section 29. Offer to Privatise a Specific Privatisation Object

(1) Not later than within a time period of three months after the taking of a decision regarding commencement of privatisation of a residential house the privatisation commission shall offer the following persons to purchase a privatisation object, sending a notification regarding it:

1) to the tenant of a rented residential space or single dwelling in 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 a lessee of a leased artist's workshop in 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 a leased non-residential premises in 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 in offering him or her to privatise an unrented single dwelling or multi-apartment house (Section 22, Paragraphs one and four); or

5) to the joint owner of a single dwelling in offering him or her to privatise a part of joint property of the single dwelling belonging to 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 an unrented residential house is built on the land of several land owners, a privatisation application shall be sent in conformity to the provisions of Section 22, Paragraph one of this Law.

(4) A 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 regarding 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 a Privatisation Notification

The following shall be indicated in a privatisation notification:

1) the given name and surname or the official title 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 plot of land, on which a residential house to be privatised has been built;

4) the value of the privatisation object;

5) the rights and duties of a tenant (his or her family members), lessee, joint owner of a single dwelling or owner of a plot of land 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 a notification regarding privatisation of an apartment has not introduced the family members with the notification;

7) the time period, by which an answer to the privatisation notification should be provided; and

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

[7 May 1998; 16 December 1999]

Section 31. Answer to a Privatisation Notification

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

Section 32. Submission of a Privatisation Application

(1) A person who wants to privatise the privatisation object indicated in the notification shall submit a privatisation application to the privatisation commission within a time period of 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. 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 a privatisation application, as well as pay taxes within the specified time period. In case of non-payment of the debt and non-fulfilment of the contractual obligations the privatisation application shall not be accepted.

(3) In 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 confirmed notarially or by a privatisation commission regarding which person or persons will privatise the privatisation object offered to them shall be submitted concurrently with a privatisation application.

(4) In the case specified in Section 47 of this Law 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 a privatisation application.

[22 August 1996; 7 May 1998]

Section 33. Content of a Privatisation Application

(1) The following shall be indicated in a 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 wants 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 regarding payments for tenancy, lease and public utility services; and

6) a resolution to undertake the liabilities of joint administration and management of a multi-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 a time period of one month from the day of receipt of a notification.

(2) Non-provision of an answer to a notification within the period of time specified in Paragraph one of this Section shall also be regarded 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 withdraw the rights thereof to submit a privatisation application afterwards, but not later than until 31 August 2006; if a decision regarding commencement of privatisation of a residential house has been taken after 28 February 2006 - within a time period of six months after the local government city council (county, parish council) or the Construction, Energy and Housing State Agency has taken a decision regarding commencement of privatisation of a 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]

Section 34.¹ Notification Regarding Entering into a Purchase Contract

(1) The privatisation commission shall send a notification regarding entering into 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 a time period of one month after a decision regarding commencement of privatisation of the residential house has been taken.

(2) The following shall be indicated in a notification regarding entering into 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 plot of land, on which the residential house to be privatised has been built;

4) the time period, until which the purchase contract shall be entered into, and the place where information regarding the procedures for entering into the purchase contract may be received; and

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

(3) A notification regarding entering into a purchase contract shall be regarded received from the day when a person who has acquired an apartment, artist's workshop or non-residential premises into ownership until privatisation of a 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 Open Auction

Section 35. Time Period, in which Privatisation of an Object in an Open Auction shall be Commenced

(1) The privatisation commission shall offer 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 for privatisation to the public in an open auction in conformity with the sequence determined by this Law not later than within a time period of one month after evaluation of the objects.

(2) Not later than within a time period of one 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 an open 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 in an Open Auction

(1) Any offer to privatise an object in an open auction shall be public, which means that such offer shall be placed in a visible place at the building of the local government city council (county, parish council) and the building of the privatisation commission, as well as published in the newspaper "Latvijas Vēstnesis" [the official Gazette of the Government of Latvia].

(2) Preparation of public offers for publication and the publication thereof in the newspaper "Latvijas Vēstnesis" shall be financed in accordance with the procedures specified by the Cabinet.

[22 August 1996]

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, area, year 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 wants to privatise the object in an open auction shall submit the privatisation application;

6) [5 July 2001];

7) the place where the privatisation notification should be submitted and information regarding the privatisation object could be received; and

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

(2) The privatisation commission shall indicate 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 in the provisions of the auction of the objects.

(3) In the case referred to in Section 21, Paragraph seven of this Law the owner of a plot of land and the time period, by which the owner of the land has to submit a privatisation application, shall be indicated in the public offer. Other persons may submit a 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 a Privatisation Application

(1) A person who wants to purchase the offered privatisation object in an open auction shall submit an application regarding participation in the auction to the privatisation commission within a time period of 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 wants to purchase the privatisation object indicated in the public offer shall submit an application to the privatisation commission within a time period of 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 enter into 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 in the case 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 enter into 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, an open auction shall be organised.

(6) If no applicant has applied for participation in an open 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 regarding 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 in using the rights specified in Section 21, Paragraph seven of this Law, an auction among them shall be organised.

[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 Regarding Entering into a Purchase Contract

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

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

[11 June 1997]

Section 41. Entering into a Purchase Contract

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

(2) The privatisation commission shall enter into 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 entered into in writing in conformity with the provisions of Section 1477-1484 of the Civil Law.

(4) Upon entering into a purchase contract with a person who has a debt of rental, lease, house management expenditure or payments for public utility services at the time of entering into the purchase contract, a pledge right to the privatised object shall be concurrently registered in favour of the State or local government according to the amount of the sum of the debts at the time of entering into 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 entered into within a time period of one month from the day when a 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 a purchaser has not entered into 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 a time period of one month from the day of sending a warning or has not notified regarding reasons, which hinder the entering into the contact, the privatisation commission may cancel a decision regarding entering in a purchase contract in notifying the purchaser about it. 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, 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 limitations of the property; and

9) the liability regarding breach of contractual obligations.

(3) Upon entering into 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 a decision of the privatisation commission in accordance with the procedures specified in Section 73.5 or 73.6 of this Law.

[28 November 1996]

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 in cases where the privatised object has been acquired in an open 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 lats and accordingly in privatisation certificates pursuant to the nominal value thereof.

(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 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; and

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 a time period of 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 an entered into tenancy contract of residential space also have the right to reduction of the purchase price.

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

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 present lessee in accordance with the provisions of Sections 866-868 of the Civil Law.

(2) The privatisation commission shall 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 upon the request of the lessee. The acquirer of the privatised object shall pay the referred to sum in money in addition to the price bid in the auction and it shall be disbursed to the present 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 rights to redeem the privatisation object also by paying in lats.

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

(3) A purchaser shall make payments for the privatised object regardless of the means of payment to the Latvian Mortgage and Land Bank on the basis of a decision taken by the privatisation commission.

(4) A purchaser shall settle the payment for the privatised object within a time period of one month from the day when the privatisation commission has taken a decision regarding entering into a purchase contract, except 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 a multi-apartment house or an artist's workshop, as well as a natural or legal person, in privatising non-residential premises, regarding utilisation which he or she has entered into a lease contract, may pay the purchase price in parts in conformity to 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 an open auction to persons who have property compensation certificates in paying only in property compensation certificates, except 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 lats and 50 per cent - in privatisation certificates. If non-residential premises have been offered for privatisation in an open auction to persons who have property compensation certificates, a purchaser shall settle 50 per cent of the purchase price in lats and 50 per cent - in property compensation certificates.

(8) If 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 period of one month from the day of the sending of a warning notice, the privatisation commission shall revoke the decision regarding the entering into of the purchase contract.

(9) After the privatisation commission has revoked the decision regarding the entering into of 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 regarding the offering of 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]

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 entering into a purchase contract.

(2) A purchaser shall make the first payment - not less than 30 per cent from the purchase price - within a time period of one month from the day when the privatisation commission has taken a decision regarding entering into a purchase contract.

(3) For the provision of the purchase price pledge rights shall be granted in favour of the State or local government to the privatised objects in accordance with this Law. In registering ownership rights on the basis of a contract, pledge rights in favour of the State or local government shall be concurrently registered 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 torn down due to alienation of a plot of land for State or local government needs and an apartment (apartments) from the State or public apartment fund has been granted to the referred to natural person and his or her family members who have permanently resided together in the torn down 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 referred to 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 entered into tenancy contract of residential space also have the right to acquire an apartment or a single dwelling into ownership free of charge.

(3) If the referred to person has submitted a privatisation application in accordance with the procedures specified in Section 32 of this Law, the privatisation commission shall 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 within a time period of two months from the day when the privatisation application has been received.

(4) The following shall be compulsorily indicated 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) limitations of the property; and

6) liability regarding breach of contractual obligations.

(5) If a house, which has been the personal property of a natural person, has been torn down due to alienation of a plot of land 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 referred to natural person and his or her family members who have permanently resided together in the torn down house as a compensation for the alienated property, the referred to 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 a plot of land 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 referred to 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
Registration of Ownership Rights

Section 48. Registration of Ownership Rights of a Privatised Object

(1) Only such person shall be recognised 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 recorded in the Land Register in accordance with the procedures specified in the Land Register Law and the Law On Recording of Immovable Property in the Land Registers.

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

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

(4) Ownership rights shall be recorded on the basis of the entered into purchase contract, except the case referred to in Section 49 of this Law. Encumbrances, debts and corroboration 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 take a decision regarding specification of entries regarding the undivided share of a joint property or other entries made in the Land Register until the transfer of the privatised residential house in the administration of apartment owners on the basis of a statement of an immovable property evaluation service.

[ 11 June 1997; 16 December 1999]

Section 49. Recording 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 a single dwelling into ownership free of charge has been entered into, the ownership rights shall be recorded on the basis of a respective agreement.

Chapter XI
Administration of a Privatised Residential House

[26 October 2000]

Section 50. Duties of the Owner of a Privatised Object

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

1) to observe the conditions of the purchase contract or agreement;

2) to participate in the joint administration and management of the multi-apartment house by joining with the other owners of the house in a society of apartment owners or by entering into a contract regarding administration and management of a joint property in conformity with the regulatory enactments in force;

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

4) to observe the lease or tenancy contracts entered into by the present possessor of the privatised object and the time periods thereof, except in the cases provided for by law.

(2) The provision of the necessary services for the maintenance of the privatised object and accounts regarding them shall occur in accordance with the relevant service contract. The service contract shall entered into by the owner of the privatised object or his or her authorised administrator and the manager of the residential house and the service provider according to the procedures specified in the regulatory enactments regulating the relevant service. The relevant service provision regulations shall be the same for all the owners 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 according to the procedures specified by law in agreement amongst themselves shall determine:

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

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

(4) If the apartment owners have not agreed regarding that referred to in Paragraph three, Clause 1 of this Section, the procedures by which an administrator shall calculate the payment for the administration and management of the residential house, draw up an estimate of the work for the maintenance and management of the residential house, notify the apartment owners regarding the amount of payment for a specific time period, inform the apartment owners regarding the specified time periods for payment provided in the estimates, as well as prepare for the apartment owners an annual accounting regarding the utilisation of the relevant payments, shall be determined by the Cabinet.

(5) If the apartment owners have not agreed regarding that referred to in Paragraph three, Clause 2 of this Section, the criteria for the payment procedures for the heating, water supply, sewerage, garbage 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, as well as the procedures by which apartment owners shall be informed regarding the conditions of the relevant contract, shall be determined by the Cabinet.

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

(7) A possessor of a State residential house or a local government has a duty to administer and manage the residential house until transfer of the administration rights of the residential house to a society of apartment owners or a person authorised by a mutual contract of apartment owners.

[7 April 2004; 21 February 2008]

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

(1) In order to establish a society of apartment owners or to enter into a mutual contract regarding 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 a time period of six months from the time when a decision regarding the commencement of privatisation of the relevant residential house has been taken.

(2) A general meeting of apartment owners in a multi-apartment house to be privatised and belonging to the State shall be convened by the possessor of the residential house, but in a multi-apartment house to be privatised and belonging to a local government - by the local government if regardless of the coming into existence of the conditions referred to in Paragraph one of this Section such society has not been established or a contract has not been entered into until the referred to time. A general meeting of apartment owners of the multi-apartment house may also be convened by one or several apartment owners of the multi-apartment house. All apartment owners of the multi-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 conformity with the conditions of Paragraph five of this Section if not less than half of all privatisation objects existing in the house are privatised in the residential house.

(4) If less than a half of all privatisation objects existing in the house are privatised in a residential house, 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 conformity 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 regarding taking over of the residential house and the following conditions are observed:

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

2) a protocol of the general meeting of apartment owners of the residential house regarding 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, statutes of the society of apartment owners and a certificate regarding registration in the Enterprise Register or a mutual contract of apartment owners has been submitted;

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

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

(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 within a time period of not more than two months 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 less than a half of all privatisation objects existing in a residential house are privatised in the house, but not all the conditions of Paragraph five 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 existing in a residential house have not been privatised at the time of the transfer of administration rights of the house, a local government or a possessor of the State residential house shall reach an agreement with a society of apartment owners or a person authorised by the mutual contract of apartment owners regarding subsequent administration and management procedures.

[27 June 2002]

Section 52. Actions Involving a Privatised Object

Actions involving a privatised object, restrictions of utilisation thereof, as well as the administration and management procedures shall be regulated by other laws and Cabinet regulations.

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

(1) An owner of a privatised apartment, non-residential premises, artist's workshop, single dwelling or multi-apartment house shall acquire the lease rights of a plot of land, which belongs to the State or local government and on which a residential house has been built, for 99 years in accordance with Section 7, Paragraphs one and three of this Law.

(2) 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 multi-apartment house is being sold, changed or otherwise alienated without application of the conditions of Section 2115 of the Civil Law.

(3) If a residential house is torn down, a lessee of a plot of land 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 a plot of land for 99 years in the result of privatisation shall acquire the leased plot of land into ownership without additional payment if the conditions provided for in this Law and other laws for obtaining land into ownership have been fulfilled, by submitting a request of corroboration to a Land Register office.

(5) A land lease contract shall be entered into regarding the use of a plot of land transferred for rent for 99 years in complying with the conditions of this Section. Lease payment in accordance with this contract may not exceed the amount of land tax.

Section 54. Rights and Duties of the Owner of a Plot of Land

(1) An owner of a plot of land has a duty to enter into a land lease contract with an owner of the privatised object.

(2) Lease payment of a plot of land for an owner of the privatised apartment and artist's workshop shall not exceed five per cent per year from the cadastral value of land. In other cases the lease payment of a plot of land shall be determined upon agreement of the owner of the privatised object and the owner of the plot of land.

(3) If an owner of a plot of land sells the plot of land, on which a privatisation object is located, an owner (owners) of the privatised object shall have pre-emptive rights thereto.

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

[18 May 2005]

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 a 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 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 Tenants of Non-residential Premises and Artist's Workshops

An owner of privatised non-residential premises or an artist's workshop may not request termination of a tenancy contract entered into by the present 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 be privatisation commissions of city residential houses, privatisation commissions of parish residential houses and the Construction, Energy and Housing State Agency.

(2) Operation of the privatisation commissions of city and parish residential houses shall be regulated by this Law and the by-laws approved by the respective local government city council (county, parish council), which has been developed in accordance with the standard by-laws approved by the Cabinet.

[11 June 1997; 20 November 2003; 21 February 2008]

Section 58. Construction, Energy and Housing State Agency

[21 February 2008]

The Construction, Energy and Housing State Agency shall perform supervision of the privatisation of residential houses, privatisation of State residential houses, as well as the other functions specified in regulatory enactments.

[20 November 2003; 21 February 2008]

Section 59. Competence of the Construction, Energy and Housing State Agency

(1) The Construction, Energy and Housing State Agency has a duty:

1) to supervise the operation of the privatisation commissions of city and parish residential houses;

2) [20 November 2003];

3) to develop drafts of regulatory enactments necessary for ensuring of privatisation;

4) to provide free of charge consultations;

5) to provide a report regarding the process of privatisation to the Cabinet not less than once in a half year;

6) to transfer apartments, artist's workshops and non-residential premises existing in State multi-apartment houses into ownership until privatisation of the residential house;

7) to develop drafts of regulatory enactments regarding the transfer of State residential houses to local governments and regarding the preservation of residential houses in ownership of the State;

8) to coordinate transfer of State residential houses to local governments;

9) to perform privatisation of the State residential houses;

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

11) to maintain, update and improve the electronic data base of privatisation of residential houses in ensuring free of charge co-operation with the information systems (registers) of other State and local government institutions, and on the basis thereof to establish, maintain and develop an information system and a data base for observation, analysis, forecasting and control of the situation in the field of housing (a housing monitoring system) in accordance with the procedures specified by the Cabinet;

12) to summarise and maintain information regarding the transfer of State and local government residential houses into the administration and management of apartment owners;

13) to perform supervision of the administration and management of the parts in residential houses belonging to the State;

14) to administer the residential houses in possession thereof until the transfer of the houses in the administration and management of apartments owners in conformity with the provisions of the Civil Law and other laws; and

15) to develop and to co-ordinate in accordance with the procedures specified in laws samples of educational programmes for the administrators of houses in the field of administration and management of houses.

(2) The Construction, Energy and Housing State Agency has the right:

1) [20 November 2003];

2) [20 November 2003];

3) to issue methodological instructions regarding work organisation of the privatisation commissions of residential houses to the privatisation commissions of city and parish residential houses;

4) to request and receive information related to privatisation from the privatisation commissions of city and parish residential houses, as well State and local government institutions, capital companies;

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

6) to participate in organisation of the maintenance and management of privatised residential houses, as well as to organise the training of owners of privatised apartments and managers thereof regarding issues related to the management of residential houses;

7) to privatise residential houses of the respective local governments with an authorisation of the city and county council, county, parish council or district council;

8) to provide paid services within the competence thereof; and

9) to request and receive free of charge information from other State information systems, which is necessary for the maintenance and updating of the electronic data base of the privatisation of residential houses.

[28 November 1996; 11 June 1997; 16 December 1999; 26 October 2000; 27 June 2002; 20 November 2003; 7 April 2004; 18 May 2006; Cabinet Regulation No. 35 of 8 January 2007; 19 April 2007; 21 February 2008]

Section 60. Privatisation Commissions of City Residential Houses and Privatisation Commissions of Parish Residential Houses

(1) The city council shall establish a privatisation commission of city residential houses consisting of five members and shall appoint the chairperson thereof.

(2) The county, parish council shall establish a privatisation commission of parish residential houses consisting of five members and shall appoint the chairperson thereof.

(3) [20 November 2003]

(4) The privatisation commission of city residential houses and the privatisation commission of parish residential houses shall organise privatisation of the State and local government residential houses that are in the administrative territory of the relevant city and the relevant parish.

(5) Activities of a privatisation commission of city residential houses and a privatisation commission of parish residential houses shall be financed from the budget of the respective local government, resources of the State property privatisation fund and resources of the local government property privatisation fund.

[7 May 1998]

Section 61. Functions of Privatisation Commissions of City and Parish Residential Houses

(1) Privatisation commissions of city and parish residential houses shall independently, as well as with the assistance of invited experts organise the privatisation of objects in accordance with this Law and other regulatory enactments regulating the procedures for the privatisation of such objects.

(2) Privatisation commissions of city and parish residential houses shall take decisions and act independently insofar as activities thereof are not regulated by this Law or other regulatory enactments.

(3) Privatisation commissions of city and parish residential houses shall once a quarter submit a report to the Construction, Energy and Housing State Agency regarding the process of privatisation.

[20 November 2003; 21 February 2008]

Section 62. Distribution of Duties among the Members of Privatisation Commissions of City and Parish Residential Houses

(1) Privatisation commissions of city and parish 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 city and parish residential houses shall take decisions by a majority 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 such edition, regarding which the chairperson of the commission has voted, but in his or her absence - the vice-chairperson of the commission.

(3) Meetings of the privatisation commissions of city and parish residential houses shall be recorded in minutes. 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 formulation, 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 individual opinion to the minutes in writing.

(4) Privatisation commissions of city and parish residential houses shall determine independently the functions of the members of commissions and distribution of duties thereof within the competence thereof.

[20 November 2003]

Section 63. Rights of the Chairperson of a Privatisation Commission of City or Parish Residential Houses

(1) A chairperson of a privatisation commission of city and parish residential houses and in his or her absence - vice-chairperson of a commission is entitled to suspend execution of a decision by an independently taken decision, notifying members of the commission and direct executors of the respective decision without delay if he or she may justify that the respective decision of the commission is illegal.

(2) If a privatisation commission of city and parish residential houses, which has re-examined the respective decision according to substance within a time period of one week after suspension thereof, 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]

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 city council (county, parish council) has the right:

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

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 of the activities of the privatisation commissions of city and parish residential houses shall be regulated by Cabinet regulations.

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 services related to privatisation of the residential house in privatisation certificates and legal persons - in lats.

(3) Transactions (contracts, agreements), which are entered into by and between the privatisation commission and purchasers of privatisation objects, payments, which are related to privatisation of privatisation objects at an open auction, as well as 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]

Section 67. Utilisation of Resources Obtained in the Result of Privatisation of Residential Houses

(1) Resources obtained in the result of privatisation of State and local government residential houses in lats shall be transferred to the privatisation fund of the respective local government in the amount of 60 per cent as a separate part of the fund and shall be used for financing of the privatisation process of residential houses and maintenance of residential houses during privatisation process thereof, as well as for organisation of the management after privatisation thereof.

(2) Resources obtained in the result of privatisation of State and local government residential houses shall be transferred in the amount of 40 per cent to the State basic budget and to the account of the Ministry of Finance indicated in the Treasury and shall be used for payment of national debt and over-financing.

(3) Resources, which are 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 revenues of the respective 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 be transferred to the account of the Ministry of Finance indicated in the Treasury and shall be used for payment of the national debt and over-financing after covering of the expenditure related to organisation of auctions.

(5) From resources, which have been transferred to the State basic budget in accordance with the annual State budget law, the Construction, Energy and Housing State Agency shall receive a grant from general income and shall use it for:

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; and

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

[7 May 1998; 26 October 2000; 5 July 2001; 27 June 2002; 30 October 2003; 7 April 2004; 21 February 2008]

Chapter XV
Procedures for Examination of Complaints and Disputes

Section 68. Competence of Local Government City Council (county, parish council) in Examination of Disputes

(1) A city council and a county, parish council shall examine any disputes, which are related to the technical execution of privatisation of apartments, non-residential premises, artist's workshops, single dwellings and apartment houses, i.e., related to:

1) specification of the value of the privatisation object;

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

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

(2) A city council and a county, parish council shall examine the disputes referred to in Paragraph one of this Section in conformity with the provisions of Section 69, 70 and 71 of this Law.

Section 69. Procedures for Examination of Disputes in a Local Government City Council (county, parish council)

(1) If a decision of the privatisation commission regarding the technical execution of privatisation of the relevant object is appealed in accordance with the procedures specified in this Law, execution thereof shall be suspended until examination of the submitted claim. Upon the receipt of a claim regarding the technical execution of privatisation of an object, the local government city council (county, parish council) shall notify about it the privatisation commission, the decision of which is being contested.

(2) The local government city council (county, parish council) shall examine the disputes referred to in Paragraph one of this Section according to an application of one party.

(3) The local government city council (county, parish council) shall invite both parties concerned to examination of the disputes referred to in Paragraph one of this Section, and they shall be examined within a time period of 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 City Council (county, parish council) Regarding Disputes Related to the Technical Execution of Privatisation of Privatisation Objects

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

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

[16 December 1999]

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

If a dispute regarding the technical execution of privatisation of an object is examined by a local government city council (county, parish council), the parties concerned and representatives thereof have the following rights and duties:

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; and

7) to appeal the decision of the local government city council (county, parish council) to the court within a time period of 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 multi-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 entering into, fulfilment, amendment or withdrawal of a purchase contract;

4) disputes regarding transfer of an apartment or a single dwelling or undivided share thereof into ownership without a fee;

5) disputes, which are related to recording 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 existing in a State residential house, i.e., related to specification of the value of the privatisation object, specification of the area of the plot of land to be transferred into lease or to be privatised and specification of the purchase price of the privatisation object; and

7) other disputes, which occur in the result of privatisation of residential houses and examination of which is not within the competence of a local government city council (county, parish council).

(2) A court shall examine the disputes referred to in Section 68 of this Law after a local government city council (county, parish council) has taken a decision regarding them in accordance with the procedures specified in this Law.

[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 Multi-apartment Houses as Illegal

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

1) an apartment, non-residential premises, artist's workshop, single dwelling or undivided share thereof or multi-apartment house is offered for privatisation not observing 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, not notifying family members about it; or

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

[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 in cases where the Construction, Energy and Housing State Agency or a local government has not commenced the privatisation of a residential house in accordance with the procedures specified in this Law and the following persons residing in a State or local government single dwelling or multi-apartment house want to perform the following activities:

1) apartment owners, family members thereof or other persons indicated in this Law want 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 want to acquire the artist's workshop leased by them into ownership; or

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

(2) Provisions of this Chapter shall be applicable in relation to non-privatised apartments that are under the supervision of the State or local government in multi-apartment houses, in which 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 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 single dwellings or multi-apartment houses, which were nationalised or otherwise illegally alienated after 21 July 1940 and regarding which applications of former owners or their heirs regarding return thereof have been received, shall 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 residential house 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 buildings belonging to the State or local government, which do not have the status of residential house.

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

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

The Construction, Energy and Housing State Agency shall transfer a rented apartment, a leased artist's workshop and non-residential premises existing in a State single dwelling or multi-apartment house into ownership until privatisation of the residential house, and a privatisation commission of residential houses of local government - a rented apartment, a leased artist's workshop and non-residential premises in a single dwelling or multi-apartment house of the local government.

[5 July 2001; 20 November 2003; 21 February 2008]

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

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

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

(3) A decision regarding the transfer of an apartment into ownership until privatisation of a residential house shall be taken if:

1) a tenant of the apartment and his or her family members enter into an agreement confirmed notarially or by a privatisation commission regarding who will privatise the rented apartment; and

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

(4) If a tenant of an apartment and his or her family members do not want to acquire the rented apartment into ownership until privatisation of a residential house, the person indicated in Section 6 of this Law may privatise the rented apartment with 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 confirmed notarially or by a privatisation commission with the person who wants 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 a residential house with a decision of a local government city council (county, parish council) or the Construction, Energy and Housing State Agency in conformity with the provisions of Section 15 or 21, as well as 36, 37, 38 and 39 of this Law.

(6) [24 February 2005]

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

(8) A common apartment shall be privatised as one single object. So that the tenants of the common apartment might acquire their rented common apartment into ownership until privatisation of a residential house, they shall have to enter into an agreement confirmed notarially or by a privatisation commission regarding who will privatise the apartment. If tenants of the apartment want to privatise the apartment as a joint property, the subsequent procedures for utilisation of residential premises shall be provided for in the referred deed of agreement.

(9) A tenant shall make payments for the transfer of an apartment into ownership until privatisation of a residential house at the Latvian Mortgage and Land Bank within a time period of one month from the day of receipt of the notification.

(10) If payments for the transfer of an apartment into ownership until privatisation of a residential house are not made within the time period specified in Paragraph nine of this Section, as well as within a period of one month from the day of sending a warning notice, the privatisation commission shall revoke the decision regarding the transfer of the apartment into ownership until privatisation of the residential house.

[7 May 1998; 20 November 2003; 24 February 2005; 21 February 2008]

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

(1) A lessee of non-residential premises or an artist's workshop in order to obtain ownership rights to the non-residential premises or artist's workshop until privatisation of a residential house shall submit to the privatisation commission an application regarding evaluation of the non-residential premises or artist's workshop and a lease contract of the non-residential premises or artist's workshop in accordance with the procedures specified in this Law. 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 a time period of one month from the day of receipt of an application if a lessee has paid the fee for evaluation of the non-residential premises or artist's workshop. Non-residential premises or artist's workshops shall be evaluated in accordance with the procedures specified by the Cabinet.

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

(4) A lessee shall submit to the privatisation commission either a confirmation of privatisation of the non-residential premises or artist's workshop for the specified purchase price in indicating the procedures for making of 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 within a time period of one month after receipt of a notification. 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 a time period of one month, the respective non-residential premises or artist's workshop shall be re-evaluated, except in cases when the lessee has contested the purchase price specified by the privatisation commission in accordance with the specified time periods and the procedures.

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

(6) A lessee shall make a payment or the first deposit for the transfer of non-residential premises or an artist's workshop into ownership until privatisation of a residential house at the Latvian Mortgage and Land Bank within a time period of one month from the day of receipt of the notification.

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

[24 February 2005; 21 February 2008]

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

(1) Payment for the transfer of an apartment into ownership until privatisation of a residential house shall be formed by a payment specified in privatisation certificates for the apartment and a payment specified in lats for preparation of the residential house for privatisation. If an apartment is transferred into ownership until privatisation of a residential house, a 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 a payment for the transfer of an apartment into ownership until privatisation of a 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 July 1998; 30 October 2003; 24 February 2005]

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

(1) Payment for the transfer of non-residential premises or an artist's workshop into ownership until privatisation of a residential house and the payment procedures shall be specified by the Cabinet in conformity 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 a residential house shall be formed from:

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; and

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 parts by making regular payments within a time period not longer than five years.

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

(5) Resources, which have been obtained in transferring the non-residential premises or artist's workshops into ownership until privatisation of a residential house, shall be used in accordance with the procedures specified in Section 67 of this Law, except the payment for evaluation of the non-residential premises or artist's workshop, which shall be transferred by a 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 the Privatisation of a 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 the privatisation of a 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 the privatisation of a 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 the privatisation of the residential house and a pledge contract if such has been entered into 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 the privatisation of a residential house within a time period of 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 the privatisation of a residential house shall be registered in the Cadastre Register. The pledge rights, which have been provided for an apartment property, and other encumbrances of 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 notify the Construction, Energy and Housing State Agency and respective local governments regarding registered apartments, artist's workshops, non-residential premises and owners thereof at least once a month.

[7 May 1998; 20 November 2003; 21 February 2008]

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

(1) A person who has acquired an apartment, artist's workshop or non-residential premises into ownership until the privatisation of a residential house shall be recognised an owner from the time 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 institution or local government shall have to enter into a mutual contract regarding maintenance and management of a residential house not later than within a time period of one month from the time when a certificate regarding ownership rights to the apartment, artist's workshop or non-residential premises until the privatisation of the residential house has been issued.

(3) Anyone who has acquired an apartment, artist's workshop or non-residential premises into ownership in the result of entering into a transaction or inheritance shall be recognised 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 in the result of entering into a transaction or inheritance, the acquirer shall register the referred to property in the Cadastre Register until the privatisation of a residential house after the entering into a contract with the respective State institution or local government regarding participation in the maintenance and management of the residential house. The contract shall be entered into until the privatisation of the residential house in accordance with the procedures specified in this Law. The State institution or local government and the owner of the apartment, artist's workshop or non-residential premises shall enter into the contract regarding maintenance and management of the residential house within a time period of one month from the day of concluding the transaction or receipt of inheritance.

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

(6) The rights, duties and liability of an owner of an apartment, artist's workshop or non-residential premises, as well as of the family members of the apartment owner and other persons lodged in the apartment shall be regulated by the Law On Residential Property insofar as it complies with this Law.

(7) Transactions, which are entered into by and between an owner of an apartment, artist's workshop or non-residential premises and the respective State institution or local government regarding the maintenance and management of a residential house until the privatisation thereof, shall not be taxed with value added tax. In transferring an apartment or artist's workshop into ownership until the privatisation of a residential house of a person who has a debt of rental, lease payments or payments for public utility services at the time of privatisation, pledge right shall be concurrently recorded to the privatised object in favour of the State or local government according to the amount of the sum of debts at the time of entering into a pledge contract.

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

(9) If a person who has acquired an apartment, artist's workshop or non-residential premises into ownership until the privatisation of a residential house has not entered into a purchase contract in the time period indicated in the notification regarding entering into a purchase contract, any transactions related to the apartment, artist's workshop or non-residential premises, which have been transferred into ownership until the privatisation of a residential house, are prohibited.

[7 May 1998; 16 December 1999]

Chapter XVI
Final Provisions

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

(1) Any 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 the cases referred to in this Law.

(2) Residential houses, which are included in the fixed 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 fixed capital of State or local government capital companies.

(3) State residential houses shall be transferred for privatisation to the Construction, Energy and Housing State Agency or local governments in accordance with the procedures specified by the Cabinet. Residential houses transferred to local governments shall become the property of local governments. Residential houses transferred to the Construction, Energy and Housing State Agency shall remain in possession and management of the previous possessor also after taking of a decision regarding commencement of privatisation of a residential house, except in cases where the Construction, Energy and Housing State Agency takes over the relevant residential houses in possession and management thereof according to an agreement with the previous possessor.

(4) State residential houses and undivided shares of residential houses shall not be transferred for privatisation if the Cabinet has taken a decision regarding non-privatisation and keeping thereof in the State property or regarding selling in an auction in accordance with the Law On Alienation of State and Local Government Property. If an apartment, artist's workshop or non-residential premises existing 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) Rented State residential houses, which are located in the territory of free economic zones or special economic zones and regarding which non-privatisation and preservation in State ownership, in evaluation of the development plan of the relevant territory, as well as the point of view of the board of directors of the relevant free economic zone or special economic zone, up to 1 December 2008 the Cabinet has taken a decision, shall not be transferred to privatisation.

(5) Unrented apartment residential houses and unrented apartments, regarding non-privatisation and keeping of which in the property of local government, which is necessary for implementation of the functions of local government specified in laws, a decision of the respective local government city council (county, parish council) has been taken, shall not be transferred to privatisation.

(5¹) Local government multi-apartment residential houses and single dwellings, which are located in the territory of free economic zones or special economic zones and regarding which non-privatisation and preservation in State ownership, in evaluation of the development plan of the relevant territory, as well as the point of view of the board of directors of the relevant free economic zone or special economic zone, up to 1 December 2008 a decision has been taken by the relevant local government city council, shall not be transferred to privatisation.

(6) Non-residential premises shall not be transferred for privatisation if State or local government capital companies or institutions are situated therein. 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 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 fixed capital of such capital companies.

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

(8) Apartments existing 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 cases provided for in the Law On Assistance in Solving Apartment Matters residential premises 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 a 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, 18 May 2006; 21 February 2008]

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 existing 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 the joint property of an owner of each apartment and transfer a plot of land, 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 S.S.R. and Latvian Republican Trade Union Council No. 171, 24 July 1989, On Sale of Apartments and Houses of the State and Public Apartment Foundation to Citizens into Personal Ownership, the privatisation commission shall determine the undivided share of the joint property of an owner of each apartment and transfer a plot of land, on which the residential house has been built, for privatisation or in lease for 99 years.

(3) State or local government plots of land, which are located in cities, shall be transferred to the owners of the apartments referred to in Paragraphs one and two of this Section, as well as State or local government plots of land, on which privatised single dwellings are located, shall be transferred to the owners thereof in rural areas for privatisation for certificates.

(4) State or local government plots of land, which are located in rural areas, shall be transferred into ownership of the apartment owners 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 a 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 person or a legal person, the duty of an owner of the plot of land and owners of the privatised apartments shall be to enter into a land lease contract in conformity with the provisions of Sections 50 and 54 of this Law.

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

(7) Apartment owners 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 enter into a contract regarding joint administration and management of a multi-apartment house.

(8) Apartment owners referred to in Paragraph one of this Section shall settle the accounts for specification of a plot of land necessary for exploitation of a residential house, survey of the plot of land and registration of the residential house in the Land Register in lats.

[28 November 1996; 7 May 1998]

Section 76. Inheritance of Apartment Privatisation Rights

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

(2) A right of privatisation of an apartment tenant shall be recognised to be returned to others from the day when the tenant of the apartment:

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

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

[11 June 1997]

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

[18 May 2006]

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

Non-residential premises existing in an auxiliary building or structure functionally associated with a multi-apartment house or also a complex of premises, which are marked as non-residential premises in the house inventory plan and are not functionally associated with any of the apartments, artist's workshops or non-residential premises existing 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 conformity with the procedures for privatisation of non-residential premises specified in this Law.

[5 July 2001]

Section 79. Notification Regarding Reasons Hindering Privatisation

The privatisation commission or the "Būvniecības, enerģētikas un mājokļu valsts aģentūra" [Construction, Energy and Housing State Agency] shall send a notification to the tenants of single dwellings and adult family members thereof, as well as lessees of the leased artist's workshops that it cannot commence privatisation of the respective residential house because any one of the following reasons hindering privatisation exist:

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 fixed capital of a State or local government capital company has not been terminated in accordance with the provisions of Section 74 of this Law; or

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

[7 April 2004; 24 February 2005; 18 May 2006; 21 February 2008]

Section 80. Sending of a Notification Regarding Reasons Hindering Privatisation

The sent notification of the privatisation commission or the Construction, Energy and Housing State Agency referred to in Section 79 of this Law shall be regarded received from the time when a tenant of an apartment or a single dwelling or any of the adult family members thereof or a lessee of an artist's workshop has confirmed with his or her signature that he or she has received the notification.

[7 April 2004; 21 February 2008]

Section 81. Submission of a Proposal of Privatisation

(1) After receipt of a notification regarding reasons hindering privatisation, a tenant of an apartment or a single dwelling, as well as a lessee of an 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 a proposal of privatisation:

1) the address and area of the privatisation object;

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

3) the reasons hindering privatisation of the privatisation object.

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

Section 82. Registration of a Proposal of Privatisation

(1) A privatisation commission or the Construction, Energy and Housing State Agency shall register a proposal of privatisation in accordance with the procedures specified by the Cabinet and within a time period of one month from the day of receipt of the proposal of privatisation shall provide a submitter of the proposal of privatisation with a written answer, which includes the following information:

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

2) information regarding 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; and

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 an object, regarding privatisation of which a proposal of privatisation has been submitted, is not transferable for privatisation pursuant to this Law, the privatisation commission shall not register the proposal of privatisation and shall provide a justified answer to the submitter of the proposal of privatisation in writing within a time period of two weeks.

[7 April 2004; 21 February 2008]

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

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

1) until 28 February 2007 if a local government city council (county, parish council) or the Construction, Energy and Housing State Agency has taken a decision regarding commencement of privatisation of a residential house until 31 August 2006; or

2) within a time period of six months after a local government city council (county, parish council) or the Construction, Energy and Housing State Agency has taken a decision regarding commencement of privatisation of a residential house if it has been taken after 31 August 2006.

(2) If an application of privatisation is not submitted within the period of time specified in Paragraph one of this Section or it has become known that an 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 about it.

[24 February 2005; 15 December 2005; 21 February 2008 ]

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

If privatisation of a single dwelling or a multi-apartment house in accordance with the procedures specified in Section 8.1 of this Law has been commenced until 31 July 2002 and the house is completely or partially situated on land belonging to the State or local government, in relation to which privatisation restrictions do not exist, which were in effect at the time of commencement of privatisation of the single dwelling or multi-apartment house, the plot of land belonging to the State or local government (hereinafter - plot of land) shall be transferred for privatisation pursuant to a decision of the local government city council (county, parish council) or the Construction, Energy and Housing State Agency in conformity with the following procedures:

1) the plot of land, 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 Construction, Energy and Housing State Agency shall take a decision to enter into an agreement with the owner of the privatised apartment, artist's workshop or non-residential premises regarding transfer of the plot of land into ownership free of charge according to the undivided share of the joint property of the privatised object;

3) the privatisation commission or the Construction, Energy and Housing State Agency shall send an invitation to privatise the plot of land to each owner of the privatised object;

4) in the invitation the privatisation commission or the Construction, Energy and Housing State Agency shall indicate the area of the plot of land to be privatised, expenditure, which are referred to in Clause 6 of this Section, as well as the period of time, until which the agreement regarding transfer of the plot of land into ownership free of charge should be entered into;

5) the privatisation commission or the Construction, Energy and Housing State Agency shall enter into the agreement regarding transfer of the plot of land into ownership free of charge in accordance with the procedures specified in this Law with each owner of the privatised object; and

6) expenditure for specification of the plot of land, survey of the plot of land 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.

[7 April 2004; 21 February 2008]

Transitional Provisions

1. During land reform legal registration of an apartment, non-residential premises, artist's workshop, as well as a single dwelling and multi-apartment house property shall be admissible prior to recording 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 existing therein 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 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 local government shall have to transfer the residential house together with the land. If a local government residential house is put into service after entering into force of this Law, it shall be transferred for privatisation only with a decision of the respective local government city council (county, parish council). If a State residential house is put into service after entering into force of this Law, it shall be transferred for privatisation only with a decision of the Cabinet.

2.¹ In the case provided for in Section 7, Paragraph six of this Law actions involving the respective State or local government plot of land shall be regulated by the Law On Alienation of State and Local Government Property.

3. Beginning with 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 fixed capital of State and local government companies with property rights if apartments existing therein are being rented and non-residential premises are being leased, except the cases provided for in Section 9 and Section 74, Paragraph four of this Law.

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

4.¹ Until the taking of a decision regarding commencement of privatisation of a residential house or a decision regarding non-privatisation of a residential house and keeping of the house in State or local government ownership it is prohibited to transform apartments existing 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 existing in the house, into artist's workshops or non-residential premises.

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 shall be offered for rental at first to persons who are registered with the local government in order to receive assistance in solving apartment matters. If none of the persons referred to in this Section has applied to rent the unrented apartment in accordance with the procedures specified in the Law On Assistance in Solving Apartment Matters, it shall be privatised in accordance with the procedures specified in this Law. Any unrented State apartment, which is to be privatised in accordance with the procedures specified in this Law, shall be at first offered for transfer into ownership of the local government, in the administrative territory of which the unrented apartment is located. If the council (county, parish council) of the relevant local government has not taken a decision regarding taking over of the unrented State apartment into ownership of the local government within a time period of one month, the unrented apartment shall be privatised in accordance with the procedures specified in this Law. If the council (county, parish council) of the relevant local government has taken a decision regarding taking over of the unrented State apartment into ownership of the local government, it shall be transferred to the local government in accordance with the procedures specified by the Cabinet.

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

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

9. Offering of apartments, non-residential premises, artist's workshops, single dwellings and multi-apartment houses for privatisation shall be commenced with 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 (county, parish council) of the respective local government may cancel the auctions of leased non-residential premises, which were announced until 15 August 1996.

13. Residential houses included in the fixed capital of State or local government companies shall be excluded from the fixed capital of the company and transferred to the local governments of the respective administrative territories or the Construction, Energy and Housing State Agency for privatisation after all expenditure related to the preparation of the residential house for privatisation have been covered if the Cabinet has not specified other procedures for financing of the preparation of the residential house for privatisation.

14. The Cabinet shall 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, by 31 December 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.

16. [21 February 2008]

17. A person, in privatising a State or local government apartment or single dwelling, shall be allowed to use privatisation or property compensation certificates of his or her minor children without the consent of the Orphan's court (parish 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.

18. [5 July 2001]

19. If a decision regarding commencement of privatisation of a 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 a time period of six months prior to this day in order to establish a society of apartment owners or to enter into a mutual contract regarding administration and management of the part of the multi-apartment house in joint property in accordance with the procedures specified in the Civil Law.

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) the State joint stock company "Valsts nekustamie īpašumi" [State Immovable Property], as well as State and local government institutions, 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 regarding division of the joint property in apartment properties or actual parts. The developed project of division of the joint property shall be sent to the joint owners for examination and an announcement regarding the project of division of the joint property shall be published in the newspaper "Latvijas Vēstnesis" [the official Gazette of the Government of Latvia];

2) if the joint owner agrees to the offered project of 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 a time period of two months after entering into a contract regarding division of the joint property into apartment properties or actual parts;

3) if the joint owner does not agree to the offered project of division of the joint property or has not given an answer within a time period of two months after publication of the announcement in the newspaper "Latvijas Vēstnesis", the State joint stock company "Valsts nekustamie īpašumi" or another State or local government institution, which has offered the project of division of the joint property, shall sell the undivided share of the joint property belonging to the State or local government in an auction on the basis of a Cabinet order or a decision of the respective local government city council (county, parish council) in accordance with the Law On Alienation of State and Local Government Property and Clause 20 of these Transitional Provisions;

4) the State joint stock company "Valsts nekustamie īpašumi" or another State or local government institution, which organises an auction, shall publish an announcement in the newspaper "Latvijas Vēstnesis" regarding the auction and the time period, until which the persons with pre-emptive rights may apply to the relevant auction, as well as shall send an offer to exercise the pre-emptive rights to the following persons:

a) to joint owners - for the undivided share to be sold for the initial auction price in making full payment in lats, and

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 pre-emption rights 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 from the total area rented in the house. The group of apartment tenants is entitled to exercise pre-emption rights to the undivided share to be sold and belonging to the State or local government, which conforms to the total area of premises rented by the group of apartment tenants, for the initial auction price in making full payment in privatisation certificates, but to the undivided share, which exceeds the total area of premises rented by the group of apartment tenants - in making full payment in lats;

5) if the time period for application specified in an auction notification has been missed, persons who have pre-emption rights shall lose the pre-emption rights 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-clause 4 of this Clause, have applied to the auction, an auction among the persons who have the pre-emption rights shall be organised. Each joint owner and each group of apartment owners shall be an independent participant of the auction; and

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

21. State residential houses, as well as apartments, artist's workshops and non-residential premises existing in residential houses belonging to the State, regarding privatisation of which purchase contracts have not been entered into and which have not been transferred into ownership until privatisation of the residential house (hereinafter - non-privatised part of residential house), shall be transferred in accordance with the procedures specified by the Cabinet into ownership of such city and parish local governments, in the administrative territory whereof the respective houses are located.

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 specified by the Cabinet.

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

25. [26 October 2000]

26. A local government city council (county, parish council) may take a decision regarding termination of operation of the privatisation commission of residential houses of the relevant local government if all local government residential houses existing in the administrative territory of the respective local government are offered for privatisation in accordance with the procedures specified in this Law.

27. [1 July 2004]

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 the houses to the Construction, Energy and Housing State Agency according to the State budget law for year 2004.

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

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, as well as apartments, artist's workshops and non-residential premises existing in residential houses shall be alienated in accordance with the Law On Alienation of State and Local Government Property, except the cases provided for in Clause 30.¹ of Transitional Provisions of this Law.

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 existing therein the privatisation of which the Construction, Energy and Housing State Agency or a local government city council (county, parish council) had to commence 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 were established in the period up to 31 August 2006;

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

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

30.² The Construction, Energy and Housing State Agency or a local government city council (county, parish council) shall take a decision regarding commencement of privatisation of a residential house not later than by 31 December 2008.

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

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

33. Privatisation of a plot of land owned by the State or local government, which has been commenced until 1 July 2004 in accordance with the provisions of Clause 27 of these Transitional Provisions, shall be terminated in accordance with the referred to provisions.

34. The Cabinet shall approve the procedures for specification of the competence criteria of the administrators of residential houses, certification of administrators and organisation of training thereof until 1 September 2004.

35. The Cabinet shall approve the procedures for the registration of proposals of privatisation until 1 September 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 regulatory enactments 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.

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

38. A local government city council (county, parish council) may restore the status of residential house to buildings, apartments, artist's workshops or non-residential premises existing (or having existed) and which have been transferred into ownership until the privatisation of a residential house if at the time of privatisation of the referred to objects the building had been a residential house and the type of use of the building had been changed until transfer thereof for privatisation, in the result of which the building is not a residential house anymore.

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

40. The lease payment of a plot of land for an owner of the privatised apartment and artist's workshop, which has been specified in conformity with the procedures specified in Section 54, Paragraph two, first sentence of this Law, in 2008, 2009 and 2010 may not exceed the amount of the lease payment of the plot of land calculated for the previous year by more than 25 per cent.

[22 August 1996; 28 November 1996; 11 June 1997; 7 May 1998; 16 December 1999; 26 October 2000; 5 July 2001; 27 June 2002; 20 November 2003; 30 October 2003; 7 April 2004; 24 February 2005; 18 May 2006; Cabinet Regulation No. 35 of 8 January 2007; 19 April 2007; 21 February 2008]

This 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 © 2008 Tulkošanas un terminoloģijas centrs (Translation and Terminology Centre)