The translation of this document is outdated.
Translation validity: 24.04.2024.–02.07.2025.
Amendments not included:
05.06.2025.
Text consolidated by Valsts valodas centrs (State
Language Centre) with amending laws of:
12 August 2003 [shall come
into force on 21 August 2003];
18 December 2003 [shall come into force on 13 January
2004];
22 June 2005 [shall come into force on 1 September
2005];
1 December 2005 [shall come into force on 30 December
2005];
8 June 2006 [shall come into force on 11 July
2006];
22 March 2007 [shall come into force on 5 April
2007];
21 June 2007 [shall come into force on 1 August
2007];
30 October 2008 [shall come into force on 14 November
2008];
12 June 2009 [shall come into force on 1 July
2009];
18 June 2009 [shall come into force on 14 July
2009];
10 September 2009 [shall come into force on 1 October
2009];
1 December 2009 [shall come into force on 1 January
2010];
21 October 2010 [shall come into force on 1 January
2011];
8 July 2011 [shall come into force on 1 August
2011];
13 June 2013 [shall come into force on 5 July
2013];
12 September 2013 [shall come into force on 1 January
2014];
6 November 2013 [shall come into force on 1 April
2014];
29 October 2015 [shall come into force on 3 December
2015];
16 June 2016 [shall come into force on 15 July
2016];
5 October 2017 [shall come into force on 26 October
2017];
7 December 2017 [shall come into force on 1 April
2018];
1 February 2018 [shall come into force on 6 March
2018];
20 June 2019 [shall come into force on16 July
2019];
13 May 2021 [shall come into force on 4 June 2021];
19 August 2021 [shall come into force on 3 September
2021];
2 June 2022 [shall come into force on 29 June
2022];
20 October 2022 [shall come into force on 14 November
2022];
12 October 2023 [shall come into force on 9 November
2023];
7 December 2023 [shall come into force on 1 January
2024];
27 March 2024 [shall come into force on 24 April
2024].
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
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The Saeima 1 has adopted and
and the President has proclaimed the following law:
Law on the Alienation of the
Property of a Public Entity
[21 October 2010]
Chapter I
General Provisions
Section 1. The following terms are used in the Law:
1) alienation - sale, exchange, investment in a capital
company and transfer without consideration of the property of a
public entity as a result of which the ownership rights are
transferred from the alienator of the property to the acquirer of
the property;
2) apartment house - a residential house where,
pursuant to the cadastral survey file, there is more than one
apartment, artist's workshop or non-residential premises, and
also auxiliary buildings and structures functionally belonging to
the house;
3) [8 June 2006];
4) auction by ascending step - a proposal to the person
who bids the highest price for the property sold at an open
auction that is higher than the opening auction price to enter
into a purchase contract for the respective property;
5) auction by descending step - a proposal to the
person who bids the highest price for the property sold at an
open auction that may be lower than the notional price but not
lower than the secret price to enter into a purchase contract for
the respective property;
6) notional price - the value of an immovable property
which has been determined according to the property appraisal
standards approved in accordance with the procedures laid down in
the Standardisation Law or the value of a movable property which
has been determined according to the property appraisal standards
approved in accordance with the procedures laid down in the
Standardisation Law, and also by taking into account the
remaining balance sheet value thereof according to the data of
accounting records;
7) sale at a free price - sale of a property at a price
fixed by the alienator which is not lower than the notional
price;
8) secret price - the price below which a property may
not be sold in an auction by descending step;
9) institution of a public entity (hereinafter - the
institution) - also judicial and prosecutorial institutions
within the meaning of this Law;
10) [21 October 2010];
11) inter-area of land - a plot of land owned by a
public entity the area of which:
a) in a city is smaller than the minimum area of building land
which has been specified in the building regulations approved by
a local government or the arrangement of which does not allow to
use the relevant plot of land for building, or for which a
connection to a common use street cannot be provided;
b) in rural areas is smaller than the minimum area of a plot
of land specified in the binding regulations of a local
government or the arrangement of which does not allow to use the
relevant plot of land according to the approved spatial plan, or
in respect of for which a connection to a common use street
(road) cannot be provided;
12) proposal for alienation - a submission of the
person referred to in Section 4, Paragraph four of this Law which
has been drawn up in accordance with the procedures laid down in
laws and regulations and which has been registered by the
relevant public entity or which has been registered in the
institution of the public entity, and on the basis of which the
public entity or its institution may commence the alienation of
an immovable property of the public entity.
[22 June 2005; 8 June 2006; 21 June 2007; 30 October 2008;
21 October 2010; 16 June 2016]
Section 2. (1) The Law prescribes the procedures for
the alienation of a property of a public entity. The property of
a public entity which has been transferred into the possession or
holding of an institution or capital company shall also be
alienated in accordance with the procedures laid down in the
Law.
(2) The Law shall not apply to:
1) the alienation of property rights (securities, capital
shares in capital companies etc.) held by a public entity the
procedures for the alienation of which are laid down by other
laws;
2) the property of the State and local governments which is
privatised in accordance with the laws On Privatisation of State
and Local Government Property Object, On Privatisation of State
and Local Government Residential Houses, and land reform
laws;
3) [8 July 2011].
(3) The provisions of this Law shall not be applicable to the
alienation of the products which have been obtained in State
scientific research forests, the State forests managed by
akciju sabiedrība "Latvijas valsts meži" [joint-stock
company Latvian State Forests] or in the case when the Ministry
of Defence, the Ministry of the Interior, or the Ministry of
Transport has transferred the right to fell trees and the
ownership rights to the trees felled to the joint-stock company
Latvian State Forests, and also in the State forests managed by
the Nature Conservation Agency, the Ministry of Defence, the
Ministry of the Interior, the Ministry of Transport, and the
State educational institution which implements vocational
educational programmes in the group of forestry educational
programmes. The joint-stock company Latvian State Forests, the
manager of State scientific research forests, the Nature
Conservation Agency, the Ministry of Defence, the Ministry of the
Interior, or the Ministry of Transport, and the State educational
institution which implements vocational educational programmes in
the group of forestry educational programmes shall obtain with
usufruct rights (Sections 1195-1200 of the Civil Law) and
alienate the production referred to in this Paragraph for the
highest price possible taking into account important public
interests and fair competition. The joint-stock company Latvian
State Forests shall, in the amount specified by the Cabinet, pay
into the State basic budget the share of the profit (dividend)
due to the State out of the profits earned as a result of the
alienation of the products referred to in this Paragraph. Funds
acquired by the Nature Conservation Agency, the Ministry of
Defence, the Ministry of the Interior, or the Ministry of
Transport, and the State educational institution which implements
vocational educational programmes in the group of forestry
educational programmes as a result of the alienation of the
products referred to in this Paragraph shall be transferred to
the own revenues of these State budget institutions. Funds
acquired as a result of the alienation of the products of State
scientific research forests shall be transferred to the budget of
the manager of State scientific research forests.
(31) Provisions of this Law shall not be applicable
if the State property the actual ownership of which is concealed
and which is to be used for the implementation of measures for
ensuring operational activities is subject to alienation. The
decision on the alienation of the abovementioned property shall
be taken by the head of the body performing operational
activities. The property shall be alienated at the highest
possible price. The head of the body performing operational
activities shall ensure that the funds acquired after alienation
of the property are transferred into the State budget
revenues.
(32) The provisions of this Law shall not be
applicable if the petroleum products owned by the State and
maintained as a reserve (security reserve) according to the
Energy Law is to be alienated for rotation. In order to maintain
the abovementioned petroleum products according to their expiry
date, they shall be either alienated by the supplier in
accordance with the obligation to renew the stocks of petroleum
product reserves provided for in a public procurement contract or
it will be done by the manager by taking the decision in
accordance with Section 72 of the Energy Law for as high a price
as possible, and the funds shall be transferred into the fund for
accumulating emergency stocks.
(4) Provisions of this Law for the alienation of immovable
property shall be applicable to the alienation of ships, except
for the alienation of warships. The Cabinet shall take the
decision to alienate warships.
(5) This Law shall be applicable to the procedural
arrangements for the alienation of an immovable property of a
public entity that is located abroad insofar as the application
thereof is not restricted by the laws and regulations of the
relevant foreign country.
[18 December 2003; 1 December 2005; 18 June 2009; 1
December 2009; 21 October 2010; 8 July 2011; 6 November 2013; 5
October 2017; 6 May 2021; 19 August 2021; 20 October 2022; 7
December 2023]
Section 2.1 When alienating built-up plots
of land, provisions of this Law shall be applicable, unless the
Law on the Completion of the Privatisation of the State and Local
Government Property and the Use of Privatisation Certificates
stipulates otherwise.
(2) Plots of land which are not alienable in accordance with
the provisions of the Law on the Completion of the Privatisation
of the State and Local Government Property and the Use of
Privatisation Certificates shall be alienated and the price
thereof shall be determined in accordance with the provisions of
this Law.
(3) When alienating a plot of land in accordance with the
procedures laid down by law, the provisions of the law which
specify a range of persons who may be bodies governed by land
ownership rights in accordance with the law shall also be
complied with.
[30 October 2008]
Section 3. (1) Immovable and movable property of a
public entity may be alienated as follows:
1) by auctioning, including at an auction with the selection
of bidders;
2) by selling at a free price;
3) by exchanging for other property;
4) by investing in the equity capital of a capital
company;
5) by transferring to the supplier and performing set-off (if
the property has been procured);
6) by transferring without consideration.
(2) The basic type of the alienation of a property of public
entities shall be the auctioning of the property. Other types of
the alienation of property may only be used in the cases provided
for in this Law.
(3) It is prohibited to invest a property of a public entity
in a partnership.
[18 June 2009; 21 October 2010]
Section 4. (1) Alienation of a State property may be
proposed if this property is not necessary for the relevant
institution or other public institutions to ensure their
functions. Alienation of a property of a derived public entity
may be proposed if this property is not necessary for the
relevant derived public entity or its institutions to ensure
their functions.
(11) Alienation of a movable property of a public
entity in respect of the State property in the cases specified by
the Cabinet but in respect of the property of a derived public
entity - in the cases specified by the decision-making body of
the relevant derived public entity - may also be proposed without
ascertaining the need of the public entity or the institutions
thereof for the movable property not necessary for another public
entity or the institutions thereof.
(12) Alienation of an immovable property which has
been transferred to a higher education institution that is a
derived public entity by the State without consideration may be
proposed if a plan for the development of immovable property of
the relevant higher education institution approved in accordance
with the procedures laid down in the Law on Higher Education
Institutions provides for the alienation of this property. The
need of another public entity or the institutions thereof for the
State immovable property referred to in the plan for the
development of immovable property of the higher education
institution shall be ascertained in accordance with the
procedures laid down in the Law on Higher Education
Institutions.
(2) Alienation of the property of a public entity may be
proposed by the head of the relevant institution and also by
another authority (official) that possesses or holds the property
of the public entity.
(3) The procedures for ascertaining the need of a public
entity or the institutions thereof for the property not necessary
for another public entity or the institutions thereof and also
the procedures for changing the holder of the property in respect
of the State property shall be laid down by the Cabinet but in
respect of the property of a derived public entity - by the
decision-making body of the relevant derived public entity. The
Cabinet shall lay down the procedures for ascertaining the need
of a public entity or the institutions thereof for the immovable
property which has been transferred for privatisation and the
privatisation of which has been terminated or the right of
privatisation has not been exercised within the term specified by
the law, for the immovable property which has been recognised as
the property without heirs or ownerless property, and also the
need for an inter-area of land and the immovable property the
cadastral value of which is below EUR 5000.
(31) If a State movable property, i.e. an animal
who has been recognised as unfit for the performance of the tasks
of the respective institution due to its state of health or
physical or psychological characteristics, is alienated, it can
be first offered to the official who uses the abovementioned
animal when performing duties of office (employment). If the
official who uses the animal when performing duties of office
(employment) is transferred to service (employment) in another
State institution but the State institution does not need the
relevant animal, the abovementioned animal may be offered to the
official who used it when performing duties of office
(employment) and it need not be offered to other State
institutions for the performance of their functions.
(4) In specific cases, alienation of an immovable property of
a public entity may be proposed by the following persons:
1) a land owner or all joint owners if they wish to purchase a
building (structure) registered in the Land Register which is
located on the land owned or an inter-area of land which is
adjacent to their land;
2) a joint owner of land if he or she wishes to purchase a
building (structure) registered in the Land Register which is
located on the land owned jointly or an undivided share thereof
in proportion to his or her share of the land;
3) an owner or all joint owners of a building (structure)
registered in the Land Register if they wish to purchase the plot
of land on which the building (structure) is located or the plot
of land on which the building (structure) is located and an
inter-area of land which is adjacent to this land;
4) a joint owner of a building (structure) registered in the
Land Register if he or she wishes to purchase an undivided share
of a plot of land on which the building (structure) is located in
proportion to his or her share of the building (structure);
5) a tenant or a family member thereof if he or she wishes to
purchase a residential house, an undivided share thereof or
residential property in accordance with the procedures laid down
in Section 45 of this Law;
6) an apartment owner if he or she has the right of first
refusal to another residential property in the same apartment
house and if he or she wishes to purchase residential property in
accordance with the procedures laid down in Section 45 of this
Law;
7) a joint owner if he or she wishes to terminate a joint
ownership relationship with a public entity;
8) a person in respect of whom the land use right has been
terminated in accordance with the procedures laid down in the Law
on the Completion of the Privatisation of the State and Local
Government Property and the Use of Privatisation Certificates and
who has entered into a land lease with a local government if this
person wishes to purchase the land which he or she has used and
for which the land lease has been entered into;
9) an owner or all joint owners of a building (structure)
registered in the Land Register if they wish to purchase
immovable property owned by a public entity which consists of a
plot of land and a non-residential building (structure) and the
building (structure) owned by them is also located on this plot
of land but the land plot of land may not be divided in
accordance with the provisions of the laws and regulations
regarding general spatial planning, use, and building, or it is
not useful. If several autonomous building (structure) properties
are located on the immovable property owned by a public entity,
the alienation thereof shall be proposed jointly by all the
owners of the building (structure) properties in accordance with
a notarised agreement as to what undivided share of the immovable
property is obtained by each owner.
(5) The Cabinet shall issue regulations providing for the
procedures by which the persons referred to in Paragraph four of
this Section submit a proposal for alienation and also the
procedures for examining the received proposals for alienation,
taking the decision to transfer the property of a public entity
for alienation or to refuse a proposal, and the procedures for
revoking the decision to transfer for alienation.
(6) A proposal for alienation shall not be necessary for the
alienation of the State immovable property which has been
transferred for privatisation and the privatisation of which has
been terminated or the right of privatisation has not been
exercised within the term specified by the law, except for the
cases referred to in Paragraph four, Clauses 3, 4, and 9 of this
Section.
[22 June 2005; 8 June 2006; 21 June 2007; 30 October 2008;
18 June 2009; 21 October 2010; 8 July 2011; 29 October 2015; 16
June 2016; 20 June 2019; 12 October 2023; 27 March 2024]
Section 5. (1) The permission to alienate the State
immovable property shall be granted by the Cabinet but the
permission to alienate the immovable property of a derived public
entity - by the decision-making body of the relevant derived
public entity. The permission to alienate the immovable property
obtained in the course or as a result of the implementation of
projects financed from resources of the European Union Instrument
for Structural Policies for Pre-Accession to the final
beneficiary of the project that is not an authority under the
subordination or supervision of a public entity or the
institution shall be granted by the relevant minister in
accordance with the procedures laid down by the Cabinet.
(2) The Cabinet or the decision-making body of a derived
public entity respectively shall take the decision to permit the
alienation of the property of the public entity referred to in
the proposal for alienation or adopt a reasoned refusal to reject
the proposal for alienation within six months from the day when
the proposal for alienation is received.
(3) A permission of the Cabinet shall not be required for the
alienation of built-up plots of land owned by the State in
respect of which the persons referred to in Section 4, Paragraph
four, Clauses 3 and 4 of this Law have submitted a proposal for
alienation in accordance with the prescribed procedures.
Valsts akciju sabiedrība "Valsts nekustamie īpašumi"
[State joint-stock company State Real Estate] shall, within two
months after submission of the proposal for alienation, provided
that it is accompanied by all documents confirming the right of
first refusal of the person, take the decision to sell the
relevant plot of land. If the proposal for alienation is received
in respect of a built-up plot of land which has not been
registered in the Land Register, the State joint-stock company
State Real Estate shall take the decision to authorise the
alienation of the built-up plot of land owned by the State within
two months from the day when the built-up plot of land has been
registered in the Land Register. The State joint-stock company
State Real Estate may not transfer for alienation a built-up plot
of land in respect of which the Cabinet has decided that it is
necessary for the performance of State administration functions
in accordance with the State Administration Structure Law.
(31) A permission of the Cabinet shall not be
required for the sale of the immovable property owned by the
State which has been transferred for privatisation and the
privatisation of which has been terminated or the right of
privatisation has not been exercised within the term specified by
the law and which is possessed by the authority performing
privatisation. The decision to sell such immovable property shall
be taken by the authority performing the privatisation of State
property.
(32) A permission of the Cabinet shall not be
required for the sale of the immovable property which has been
recognised as the property without heirs or ownerless property
and in respect of which claims of creditors have not been
submitted or which has been recognised as a confiscated property,
and also an application for the need to preserve it in the
ownership of a public entity has not been received from an
authority of the public entity. The decision to sell such
immovable property shall be taken by the authority in the
possession of which it has been transferred in accordance with
the laws and regulations regarding the procedures for the
accounting, appraisal, sale, transfer free of charge, destruction
of the property under jurisdiction of the State and transfer of
revenues from the sale thereof into the State budget. This
Paragraph of the Section shall not apply to the immovable
property referred to in Section 8, Paragraphs two, three, four,
and 4.1 of the law On Land Ownership Rights of the
State and Local Governments and Corroboration Thereof in the Land
Registers.
(33) A permission of the Cabinet shall not be
required for the sale of an inter-area of the State land and
immovable property the cadastral value of which is below EUR
5000. The possessor of the relevant immovable property shall take
the decision to sell the State immovable property referred to in
this Section. If the person referred to in Section 4, Paragraph
four, Clause 1 or 3 of this Law has submitted a proposal for
alienation, the decision to sell an inter-area of land shall be
taken within two months after submission of the proposal for
alienation, provided that it is accompanied by all documents
confirming the right of first refusal of the person. If the
proposal for alienation has been received in respect of an
inter-area of land which has not been registered in the Land
Register, the decision to permit the alienation of the inter-area
of land shall be taken within two months from the day of the
registration thereof in the Land Register.
(4) The decision-making body of a derived public entity or an
institution or official appointed by it shall, within two months
after the persons referred to in Section 4, Paragraph four,
Clauses 3 and 4 of this Law have submitted, in accordance with
the prescribed procedures, a proposal for alienation accompanied
by all documents confirming the right of first refusal of the
person, take the decision to sell the relevant plot of land. If
the proposal for alienation is received in respect of a built-up
plot of land which has not been registered in the Land Register,
the decision-making body of a derived public entity or an
institution or official appointed by it shall take the decision
to permit the alienation of the built-up plot of land owned by
the derived public entity within two months from the day when the
built-up plot of land has been registered in the Land
Register.
(41) If a proposal for alienation is received in
respect of the sale of an inter-area of land of a derived public
entity or such immovable property the cadastral value of which is
below EUR 5000, the decision-making body of a derived public
entity or an institution or official appointed by it shall take
the decision to sell it within two months after submission of the
proposal for alienation. If the proposal for alienation is
received in respect of an inter-area of land which has not been
registered in the Land Register, the decision-making body of a
derived public entity or an institution or official appointed by
it shall take the decision to permit the alienation of the
inter-area of land within two months from the day when the
inter-area of land has been registered in the Land Register.
(5) The decision to alienate immovable property shall also
specify the type of alienation and, where necessary, conditions
for further use of the immovable property and restrictions of the
right of alienation.
(6) Alienation of property by auctioning it with the selection
of bidders may only be determined where conditions for further
use of the property are provided for.
(7) A permission of the Cabinet or the decision-making body of
the derived public entity shall not be required for the
alienation of the immovable property which has been recognised as
the property without heirs in accordance with Section 416 of the
Civil Law and in respect of which claims of creditors have been
submitted. A sworn bailiff shall alienate such immovable property
in accordance with the procedures laid down in the Cabinet
regulations.
(8) A sworn notary shall send an extract from the notarial
deed book on the termination of an inheritance case in accordance
with the procedures laid down in laws and regulations to the
State joint-stock company State Real Estate which shall publish
this information on its website within four days, except for the
information on the immovable property referred to in the Law on
Forests and the law On Specially Protected Nature
Territories.
(9) If the immovable property is necessary for the performance
of State administration functions, a ministry shall, within seven
days from the day when the information referred to in Paragraph
eight of this Section is published, send to a sworn bailiff a
request to appraise the immovable property and make a note on the
exercise of the right of first refusal on the website of the
State joint-stock company State Real Estate. If the immovable
property is necessary for the performance of the functions of a
local government and a local government has informed the Ministry
of Environmental Protection and Regional Development thereof, the
note shall be made by the Ministry of Environmental Protection
and Regional Development.
(10) The ministry which has been the first to make the note
referred to in Paragraph nine of this Section shall further
submit the Cabinet draft order for examination to the Cabinet. If
the immovable property is necessary for the performance of the
functions of both public authorities and local government, it
shall be taken over by the State. The Cabinet shall, within 28
days after the relevant ministry has received an appraisal, take
the decision to take over the property without heirs in the State
or local government ownership and the relevant ministry shall
send this decision to a sworn bailiff. A local government shall,
from its budget funds if the immovable property is transferred to
a local government, or a public institution shall, from the State
budget funds if the relevant immovable property is transferred to
the State, transfer the financial means to a deposit account of a
sworn bailiff in the amount of the appraised value of the
immovable property in accordance with the procedures laid down by
the Cabinet.
(11) A permission of the Cabinet shall not be required for the
sale of the immovable property which has been recognised as the
property without heirs in accordance with Section 416 of the
Civil Law and in respect of which claims of creditors have been
submitted but a sworn bailiff has taken the decision to not
organise the auction of the immovable property or the auction has
been recognised as not having taken place and a request to
organise a second or third auction has not been submitted to the
sworn bailiff in accordance with the procedures laid down in laws
and regulations, or the auction has been recognised as not having
taken place and the sworn bailiff concludes that it might also be
impossible to sell the immovable property at the next auction or
the sale costs might exceed the amount of money obtained from the
sale. The decision to sell such immovable property shall be taken
by the authority in the possession of which it has been
transferred in accordance with the laws and regulations regarding
the procedures by which a sworn bailiff ensures the management,
security, appraisal, alienation of the property without heirs,
satisfaction of the claims of creditors, distribution of revenues
from sale, including coverage of expenses and remuneration for
the office of the sworn bailiff and sworn notary, or transfer
thereof to the State budget, and also determines the amount of
the deposit. This Paragraph of the Section shall not apply to the
immovable property referred to in Section 8, Paragraphs two,
three, four, and 4.1 of the law On Land Ownership
Rights of the State and Local Governments and Corroboration
Thereof in the Land Registers.
[22 June 2005; 21 June 2007; 30 October 2008; 21 October
2010; 13 June 2013; 20 June 2019; 2 June 2022; 12 October 2023;
27 March 2024]
Section 6. (1) The permission to alienate the State
movable property which is possessed or held by a ministry, an
institution or a capital company under the subordination,
supervision or authority thereof shall be given by the relevant
minister. The relevant ministry shall give the permission to
alienate the State movable property in accordance with the
procedures and in the cases laid down by the Cabinet by taking
into account the type and value of the property. If a public
institution is not under the subordination, supervision or
authority of any ministry, the permission to alienate immovable
property shall be given by the head of the institution. The
permission to alienate the movable property obtained in the
course or as a result of the implementation of projects financed
from the funds of the European Union Instrument for Structural
Policies for Pre-Accession from the final beneficiary of the
project that is not an authority under the subordination or
supervision of a public entity or the institution thereof shall
be given by the relevant minister in accordance with the
procedures laid down by the Cabinet.
(11) Movable property which has been recognised as
the property without heirs in accordance with Section 416 of the
Civil Law and in respect of which claims of creditors have been
submitted shall be alienated by a sworn bailiff in accordance
with the procedures laid down by the Cabinet.
(2) The permission to alienate movable property of a derived
public entity shall be given by the decision-making body of the
relevant derived public entity or an authority appointed by
it.
(3) The decision to alienate shall indicate the type of
alienation.
[30 October 2008; 21 October 2010; 13 June 2013]
Section 7. If the type of alienation specified in the
decision to alienate property of a public entity has not been
successful, the authority (official) which gave the permission
for alienation may determine another type of alienation.
[21 October 2010]
Section 8. (1) The appraisal of the State immovable
property intended for alienation shall be organised by the State
joint-stock company State Real Estate, except for the cases
referred to in Paragraphs 1.1, 1.2, and
1.3 of this Section.
(11) The appraisal of the immovable property to be
exchanged shall be organised by the ministry, public institution,
agency, or State capital company which possesses the State
immovable property to be exchanged.
(12) The appraisal of a State immovable property to
be invested in the equity capital of a State capital company
shall be organised by the State capital company in the equity
capital of which the State immovable property is invested.
(13) The appraisal of the immovable property
referred to in Section 5, Paragraphs 3.1,
3.2, and eleven of this Law shall be organised by the
authority which manages the relevant immovable property.
(2) The appraisal of an immovable property of a derived public
entity intended for alienation shall be organised in accordance
with the procedures laid down by the decision-making body of the
relevant derived public entity.
(3) The composition of the immovable property appraisal
committee and the notional price of the property shall be
approved by the authority (official) which organises the
appraisal of the immovable property in accordance with Paragraphs
one and two of this Section.
(4) Appraisal of the movable property intended for alienation
shall be organised by the public entity, the institution or
capital company thereof which possesses or holds the relevant
property.
(5) The composition of the movable property appraisal
committee and the notional price of the property shall be
approved by the authority (official) which is entitled to
authorise the alienation of the relevant property in accordance
with the provisions of Section 6 of this Law.
(6) The property appraisal committee shall invite one or more
certified appraisers to participate in the appraisal.
(7) The property appraisal committee shall set the notional
price according to the value of the property.
[22 June 2005; 1 December 2005; 8 June 2006; 30 October
2008; 12 June 2009; 21 October 2010; 20 June 20192 / The
new wording of Paragraph 1.3 shall come into force on
1 November 2019. See Paragraph 19 of Transitional
Provisions]
Section 9. (1) Alienation of the State immovable
property shall be organised by the State joint-stock company
State Real Estate, except for the cases referred to in Paragraphs
1.1, 1.2, and 1.3 of this
Section.
(11) Exchange of a State immovable property shall
be organised by the ministry, public institution, agency, or
State capital company which possesses the State immovable
property to be exchanged.
(12) Investment of a State immovable property in
the equity capital of a State capital company shall be organised
by the State capital company in the equity capital of which the
State immovable property is invested.
(13) Sale of the immovable property referred to in
Section 5, Paragraphs 3.1, 3.2, and eleven
of this Law shall be organised by the authority which manages the
relevant immovable property.
(2) The authority which organises the alienation of an
immovable property of a derived public entity shall be determined
by the decision-making body of the derived public entity.
(3) Alienation of a movable property shall be organised by a
public entity, the institution or capital company thereof which
possesses or holds the relevant property.
[22 June 2005; 1 December 2005; 8 June 2006; 30 October
2008; 12 June 2009; 21 October 2010; 20 June 20192 / The
new wording of Paragraph 1.3 shall come into force on
1 November 2019. See Paragraph 19 of Transitional
Provisions]
Section 9.1 If the State joint-stock company
State Real Estate has received a proposal for the alienation of
an immovable property belonging to the State, it shall
immediately request the public authority which possesses the
relevant immovable property to provide the documents necessary
for preparing the decision to transfer the immovable property for
alienation. The public authority which possesses the relevant
immovable property shall, not later than within two weeks after
receipt of the request, transfer the requested documents to the
State joint-stock company State Real Estate. The State
joint-stock company State Real Estate and the public authority
which possesses the relevant immovable property may, upon mutual
agreement, extend the term for the takeover of the documents of
immovable property.
[22 June 2005; 8 July 2011]
Chapter II
Auctioning
Section 10. (1) Provisions of the auction shall be
approved by the authority referred to in Section 9 of this Law.
Provisions of the auction of immovable property may only include
the conditions provided for in the law and the decision by the
Cabinet, the decision-making body of a derived public entity or
the authority (official) referred to in Section 5 of this Law.
Provisions of the auction shall indicate the authority (official)
that validates the results of the auction and whereto complaints
concerning the activities of the organiser of the auction may be
submitted.
(2) An auction shall be organised by the auction commission
(hereinafter - the organiser of the auction) established by the
authority which organises the alienation of property (Section 9)
or a third person entrusted with the organisation of the auction
by this authority in accordance with the Public Procurement Law
and with whom it has entered into a written contract.
[30 October 2008; 21 October 2010; 20 June 2019 /
Amendment to Paragraph one shall come into force on 1 November
2019. See Paragraph 19 of Transitional Provisions]
Section 11. (1) Advertisements for the auction of the
immovable property of a public entity shall be published in the
official gazette Latvijas Vēstnesis and on the website of
the authority which organises the alienation of the immovable
property (Section 9). Information on the auction shall be
displayed in a clearly visible place at the relevant immovable
property by indicating the name, address, and telephone number of
the organiser of the auction. When organising an electronic
auction, advertisements shall also be posted on the website of
electronic auctions. Also other ways for notifying information
may be used for the placement of information so that it would
reach as wide range of applicants as possible.
(2) Advertisements for the auction of the movable property of
a public entity shall be published on the website of such
authority which organises the alienation of immovable property
(Section 9), but if the total notional price of the movable
property to be sold exceeds EUR 3500 - also in the official
gazette Latvijas Vēstnesis. Advertisements for the auction
of the movable property of local governments shall be published
in accordance with the procedures by which binding regulations of
local government councils are published. Also other ways for
notifying information may be used for the placement of
information so that it would reach as wide range of applicants as
possible.
(3) Concurrently with an advertisement, an auction
announcement shall be sent to a person whose ownership rights
have been corroborated in the Land Register and who has the right
of first refusal by indicating that this person may only exercise
such rights if it is applied in writing within the terms
specified in the advertisement.
(4) If the value of the property of the State or derived
public entity other than a local government exceeds EUR 3500, the
relevant audit commission of the State or derived public entity,
if such has been established, shall be notified of the auction
thereof, but if the value of the property of a local government
exceeds EUR 1400, an audit commission of the local government, if
such has been established, shall be notified of the auction
thereof.
[22 June 2005; 30 October 2008; 21 October 2010; 8 July
2011; 12 September 2013; 20 June 2019; 12 October 2023]
Section 12. The advertisement and the announcement
shall indicate the following:
1) the name, location, cadastral number, and owner of the
property to be auctioned;
2) the name of the organiser of the auction and information
stating where and when the provisions of the auction are made
available;
3) the place and time for the inspection of the property to be
auctioned;
4) the place and time for the registration of applications and
the auction but if an electronic auction is organised - the date
and time for the commencement and closing of the auction;
5) the notional price of the property to be auctioned, the bid
increment, the amount of the security and the procedures for
lodging it;
6) the person who has the right of first refusal and the
existence of the proposals for alienation made by the persons
referred to in Section 4, Paragraph four of this Law, and also
the term within which the respective persons may submit an
application;
7) the type of the auction;
8) the payment procedures;
9) the conditions for further use of the immovable property to
be sold, if such have been provided for;
10) if an electronic auction is organised, the website of
electronic auctions where information is available on auction
procedures and conditions under which persons may register for
participation in the auction and participate in bidding.
[20 June 2019]
Section 13. The term set for an auction may not be
shorter than four weeks but for the auction of movable property -
not shorter than two weeks from the day when the first
advertisement is published.
[13 June 2013]
Section 14. (1) If an application for the exercise of
the right of first refusal is received within the announced term
from a person who has the right of first refusal and who has not
been referred to in Section 4, Paragraph four of this Law, it may
acquire the property of a public entity at the highest price bid
at the auction. This person shall, within 10 days from the
validation of the results of the auction, notify the organiser of
the auction of the exercise of the right of first refusal, enter
into a purchase contract and pay the highest price bid, unless
the provisions of the auction provide for other payment
procedures.
(2) Alienation of the property referred to in Section 4,
Paragraph four of this Law shall be announced in accordance with
the procedures laid down in this Law (Section 11) by calling on
the relevant persons to submit an application for the purchase of
immovable property within a month. If one application has been
received from the respective persons within the specified term,
an auction shall not be organised and a purchase contract shall
be entered into with this person for the notional price.
(3) If an application for the purchase of immovable property
has been submitted within the specified terms by several persons
referred to in Section 4, Paragraph four of this Law (except for
the cases referred to in Section 44, Paragraph four and Section
45 of this Law), an auction shall be organised between these
persons in accordance with the procedures laid down in this
Law.
(4) If the persons referred to in Section 4, Paragraph four of
this Law have failed to submit the application for the purchase
of immovable property within the announced term (Section 11) or
have submitted a refusal, an auction shall be organised (except
for the case referred to in Section 44, Paragraphs four and eight
of this Law) in accordance with the procedures laid down in this
Law. In this case, the respective persons are entitled to
purchase the immovable property at an auction in accordance with
the general procedures and also where auctions are re-organised
(including auctions by descending step) or the notional price is
lowered in accordance with the procedures laid down in this
Law.
[21 October 2010; 8 July 2011]
Section 15. (1) An auction may be oral, written,
combined (oral and written), or electronic.
(2) An auction may be an auction by ascending step or an
auction by descending step.
[20 June 2019]
Section 16. (1) Prior to the auction, participants of
the auction shall lodge a security in the amount of 10 per cent
of the notional price of the property to be auctioned (Section 8)
but in the case of a repeated auction - of the opening auction
price. The security shall be deemed lodged if the relevant
monetary amount has been credited to the bank account specified
in the provisions of the auction.
(2) If the authority which organises the alienation of a
property cannot obtain information in the public databases
regarding the relevant legal person or partnership, it is
entitled to request additionally the legal person or partnership
to provide a statement of the State register institution
regarding the relevant legal person or partnership (the statement
shall be valid if issued not earlier than six weeks before the
day of the auction).
(3) [20 June 2019]
(4) Documents issued abroad shall be accepted if they are
drawn up in accordance with the provisions of international
treaties binding on Latvia.
(5) If immovable property is auctioned, the organiser of the
auction shall draw up a list of the persons who have met the
preconditions for the auction.
[8 July 2011; 20 June 2019]
Section 17. (1) Property may not be sold at a price
lower than the notional price (Section 8) at an auction by
ascending step, except for the cases specified in this Law, or at
a price lower than the secret price at an auction by descending
step.
(2) Property shall first be offered at an auction by ascending
step. Bidding shall start from the notional price of the property
(Section 8).
(3) Bidding shall only take place within the increment
specified in the provisions of the auction.
[21 June 2007]
Section 18. (1) Participation is allowed in an auction
if an application has been submitted within the term specified in
the advertisement and preconditions for the auction have been
met.
(2) Responsible officials of the organiser of the auction as
well as other persons who, according to their office duties or
individual tasks, are present at the sale of property at the
auction (organisation, managing thereof) may not be buyers
themselves and also may not buy on behalf of others.
(3) Participants of the auction may not enter into an
agreement which may affect results and course of the auction.
Section 19. (1) If an oral auction is organised, the
participants thereof shall sign the provisions of the auction
prior to the commencement of the auction. If a person wishes to
exercise its right of first refusal at the auction, it shall be
notified together with other provisions of the auction. When
opening the auction of movable property, the organiser of the
auction shall draw up a list of participants but, if immovable
property is auctioned, the organiser of the auction shall make
certain of the arrival of bidders according to the list drawn up
previously.
(2) The given name and surname or name of each participant,
and also the given name and surname of a representative of the
bidder shall be included in the list of participants of the
auction. When refusing to bid further, each participant of the
auction of immovable property shall countersign its last price
bid in the list of participants of the auction.
(3) Bidding of a higher price at the same oral auction may be
made at a specific amount which may not exceed 10 per cent of the
notional price and which has been indicated in the provisions of
the auction.
Section 20. If a written auction is organised, bids
shall be submitted in closed envelopes with a note explaining for
which auction they are submitted. A submission shall indicate the
given name and surname or name of a submitter, address, current
account number with a credit institution, the time of submission
of the bid and the amount bid, and also confirm consent to the
provisions of the auction. Bids not corresponding to these
requirements shall be deemed invalid.
Section 21. Bids may be submitted for the written
auction before a specific day and hour:
1) by sending them by post to the organiser of the
auction;
2) by delivering them directly to the organiser of the auction
by the time limit specified in Paragraph 23 of this Law.
Section 22. Bids for the written auction submitted in
person or sent by post shall be kept in closed envelopes until
the auction.
Section 23. At the indicated hour of the written
auction, the organiser of the auction shall check the post of the
specific day and ascertain whether the registered participants
have submitted their bids. If bids are not received within 15
minutes, the persons present shall be notified of the fact that
acceptance of the bids is completed. After this notification,
bids are no longer accepted neither submitted in person nor sent
by post. The organiser of the auction shall open the bids
submitted in closed envelopes in the presence of participants and
sign them (if the auction is organised by the auction commission,
all members of the commission shall sign). Oral bids are
prohibited in a written auction.
Section 24. After opening the envelopes, the organiser
of the auction shall draw up a list of the prices bid from the
submitted bids, reject invalid bids by noting it in the minutes
of the auction, and, if there is no doubt, state that the auction
is completed, and also name the highest price and the person who
has bid it. Minutes shall be taken in respect of this. Security
shall be repaid to other participants of the auction within the
term specified in the provisions of the auction.
Section 25. If it is established after opening all
envelopes that several participants of the auction have bid the
same highest price, the organiser of the auction shall continue
the auction by accepting written bids from the persons who have
bid the same highest price.
Section 26. If a combined auction is organised, written
bids shall be submitted before the commencement of an oral
auction. On the day and at the hour of the auction, written bids
in closed envelopes shall be placed in an auction room in a
visible place on a table where they remain unopened until the end
of the oral auction.
Section 27. (1) After completion of the oral auction,
the organiser of the auction shall open the submitted envelopes
in the presence of the participants of the auction, read out loud
the bids, and sign them (if the auction is organised by the
auction commission, all members of the commission shall
sign).
(2) After examination of written bids, a person who has bid
the highest price shall be announced the highest bidder, provided
that this price is acceptable (Section 17). If the highest price
bid in writing is equal to the highest price bid orally,
preference shall be given to the written bid.
Section 28. (1) A participant of the auction who has
submitted a written bid in a closed envelope in time may only
participate in oral bidding if he or she withdraws from the
written bid before the opening of the auction.
(2) A participant of the auction who has not withdrawn from
the written bid but also participates in the oral auction shall
lose the security and his or her bid shall not be taken into
account.
Section 29. If a combined auction is organised, the
relevant provisions of this Law regulating the procedures for the
oral and written auctions shall be applied.
Section 29.1 If an electronic auction is
organised, it shall take place on the website of electronic
auctions established in accordance with Section 605.1
of the Civil Procedure Law. The electronic auction shall take
place in compliance with this Law, the laws and regulations
regarding the procedures for performing activities on the website
of electronic auctions, and provisions of the auction.
[20 June 2019]
Section 29.2 (1) If an electronic auction of
immovable property is organised, a person who wishes to
participate in the auction of immovable property shall, within 20
days from the commencement date of the auction indicated in the
auction advertisement, lodge a security to the organiser of the
auction in the amount indicated in the auction advertisement and
using the website of electronic auctions send a request to the
organiser of the auction to authorise him or her to participate
in the auction. The organiser of the auction shall, within seven
days after receipt of an application of the applicant, authorise
applicants who have met all preconditions for the auction to
participate in the auction. The members authorised for the
auction may make bids during the entire course of the
auction.
(2) If an electronic auction of movable property is organised,
a person who wishes to participate in the auction of movable
property shall, within 10 days from the commencement date of the
auction of movable property indicated in the auction
advertisement, lodge a security to the organiser of the auction
in the amount indicated in the auction advertisement and using
the website of electronic auctions send a request to the
organiser of the auction to authorise him or her to participate
in the auction. If the notional price of movable property is EUR
10 000 or more, the term during which the person lodges a
security to the organiser of the auction and sends a request to
the organiser of the auction to authorise him or her to
participate in the auction shall be 20 days from the commencement
date of the auction of movable property indicated in the auction
advertisement. The organiser of the auction shall, within seven
days after receipt of an application of the applicant, authorise
applicants who have met all preconditions for the auction to
participate in the auction. The members authorised for the
auction may make bids during the entire course of the
auction.
[20 June 2019; 6 May 2021]
Section 29.3 (1) An electronic auction shall
end in accordance with that specified in Section 587, Paragraphs
three and four of the Civil Procedure Law or Section 608,
Paragraph four of the Civil Procedure Law.
(2) The organiser of the auction may discontinue the auction
if in the course thereof a notice is received from a safety
manager of the website of electronic auctions on significant
technical failures which may affect the result of the auction.
Notice on the discontinuation of the auction shall be published
on the website of electronic auctions.
[20 June 2019; 6 May 2021]
Section 30. (1) The highest amount offered shall be
paid for the immovable property bid within two weeks but for the
movable property - within a week from the day of the auction,
unless the provisions of the auction provide for another term.
The amount of the lodged security (Section 16) shall be included
in the amount of the purchase.
(11) When selling the immovable property of a
public entity on a hire purchase basis, an advance in the amount
of 10 per cent of the highest amount offered for the immovable
property bid shall be paid within two weeks, unless the
provisions of the auction provide for another term. The amount of
the lodged security (Section 16) shall be included in the
advance.
(2) If the specified payment deadline is missed, a bidder
shall lose the lodged security (Section 16) but alienation of the
property shall be continued in accordance with the procedures
laid down in Section 32 of this Law.
[8 July 2011]
Section 30.1 (1) If the provisions of the
auction provide for a hire purchase of immovable property or
special conditions for use, a purchase contract shall be entered
into with a legal person whose debt of taxes, including fees and
mandatory State social insurance contributions, in Latvia does
not exceed EUR 150. Payment of taxes shall be verified prior to
validating the results of the auction by taking into account the
information entered into the information system specified by the
Cabinet - the public tax debtors' database of the State Revenue
Service, and also the last data updated in the Administration
System of Immovable Property Tax.
(2) A legal person who has bid the highest price but in
respect of whom a tax debt has been established in accordance
with the procedures laid down in Paragraph one of this Section
shall lose the lodged security (Section 16) and the immovable
property shall be offered to the buyer who has bid the next
highest price.
(3) If a tax debt has been established in respect of a buyer
who is the legal person who has bid the next highest price in the
case referred to in Paragraph two of this Section and in
accordance with the procedures laid down in Paragraph one of this
Section, this person shall lose the lodged security (Section 16)
but alienation of the property shall be continued in accordance
with the procedures laid down in Section 32 of this Law.
(4) A legal person who has bid the highest price or the next
highest price and in respect of whom a tax debt has been
established in accordance with the procedures laid down in
Paragraph one of this Section may demonstrate the absence thereof
by submitting the following:
1) a printout from the Electronic Declaration System of the
State Revenue Service certified by the relevant person or a
representative thereof or a statement of the State Revenue
Service that the relevant person does not have any tax debts,
including the debts of mandatory State social insurance
contributions;
2) a copy of the decision of the State Revenue Service or the
competent authority of a local government to extend or postpone
the deadline for the payment of taxes or other objective evidence
on the absence of the tax debt.
[20 June 2019]
Section 31. (1) If none of the buyers has bid higher
than the opening auction price, an auction by ascending step
shall be deemed not to have taken place.
(2) If a bidder has failed to pay the price bid within the
specified term, the authority which organises the alienation of
property (Section 9) shall inform the buyer who has bid the next
highest price.
(3) The buyer who has bid the next highest price has the right
to, within two weeks from the day when he or she receives a
notice, inform the organiser of the auction of the purchase of
the property at the highest price he or she has bid.
(4) If the immovable property of a public entity is sold on a
hire purchase basis, the buyer who has bid the next highest price
and has informed the organiser of the auction of the purchase of
the immovable property at the highest price he or she has bid
shall, within two weeks, pay an advance for the immovable
property bid in the amount of 10 per cent of the highest amount
he or she has bid, unless the provisions of the auction provide
for another term. The amount of the lodged security (Section 16)
shall be included in the advance.
[21 June 2007; 8 July 2011; 12 October 2023]
Section 32. (1) If no one has bid higher than then the
opening auction price at the first auction of immovable property,
it shall be possible to:
1) organise a second auction by ascending step at which the
authority which organises the alienation of immovable property
(Section 9) may lower the opening price for the auction but by
not more than 20 per cent;
2) organise a new auction by changing the procedures for the
payment of the highest price bid;
3) propose revocation of the decision to transfer for
alienation.
(2) After a second unsuccessful auction, the authority which
organises the alienation of immovable property (Section 9)
may:
1) organise a third auction by ascending step by lowering the
opening auction price by not more than 60 per cent of the
notional price;
2) organise a new auction by changing the procedures for the
payment of the highest price bid;
3) organise an auction by descending step;
4) propose revocation of the decision to transfer for
alienation.
(3) After a third unsuccessful auction, the authority which
organises the alienation of immovable property (Section 9) may
propose:
1) to perform re-appraisal;
2) another type of alienation provided for in this Law
(Sections 3 and 7);
3) revocation of the decision to transfer for alienation.
(4) If the first auction of movable property has been
unsuccessful, the authority which organises the sale of property
(Section 9) may propose another type of alienation provided for
in this Law (Sections 3 and 7).
(5) In case of repeated auctions, the alienation price of land
may be lower than the cadastral value of the land.
[30 October 2008; 13 June 2013]
Section 33. (1) When organising an auction by
descending step, the authority which organises the alienation of
property (Section 9) shall set the secret price.
(2) Participants of the auction shall be notified of the fact
that the secret price has been set.
(3) A closed envelope with the secret price shall be placed in
a visible place on a table during the auction.
(4) After the highest price bid, the organiser of the auction
shall open the envelope with the secret price in the presence of
the participants of the auction. If the secret price is higher
than the price offered, the persons present shall be notified of
this fact. The persons present shall not be notified of the
secret price.
[8 July 2011]
Section 34. (1) The organiser of the auction shall
approve the minutes of the auction within seven days after the
auction.
(2) The authority which organises the alienation of property
(Section 9) shall validate the results of the auction not later
than within 30 days after settlement of the payments provided for
in Section 30 of this Law.
[8 July 2011]
Section 35. (1) If an acceptable price is reached at an
auction (Sections 17 and 32), validation may only be refused if a
deviation from the auction procedures stipulated by in this Law
or the provisions of the auction has been permitted in the
organisation of the auction or it is established that the bidder
is a person who may not enter into transactions or who has not
had the right to participate in the auction (Sections 16 and
18).
(2) If the results of the auction of property have not been
validated and the price bid at the auction exceeds the notional
price of the property together with expenditures of the auction,
a new auction of the property shall be organised under the same
conditions. Otherwise, another type of alienation of property
specified in this Law (Sections 3 and 7) may be chosen but
alienation of immovable property shall be continued in accordance
with the procedures laid down in Section 32 of this Law.
Section 36. (1) A bidder of the property of a public
entity shall sign a purchase contract within thirty days after
validation of the results of an auction. A contract for the
purchase of immovable property shall be signed by the Minister
for Finance or an authorised person thereof on behalf of the
State, by the head of the decision-making body of a derived
public entity or an authorised person thereof on behalf of the
relevant derived public entity, but a contract for the purchase
of movable property shall be signed by the head of a public
entity for the institution thereof that possesses or holds the
property or an authorised person thereof, or the head of the
managing body of a capital company that possesses or holds the
property or an authorised person thereof.
(2) If the immovable property of a public entity is sold on
the condition that it will be used for a specific purpose or
under other special conditions for alienation, these conditions
shall be included in a purchase contract and also sanctions (a
contractual penalty, withdrawing from the contract etc.) for the
failure to meet them shall be imposed.
(3) When selling an immovable property of a public entity on
the hire purchase basis, the payment term shall not exceed five
years. A buyer shall pay six per cent a year of the outstanding
part of the purchase price for the deferred payment and default
interest amounting to 0.1 per cent of the delayed amount of
payment for each day of delay - for the delayed payment deadlines
specified in the purchase contract. These conditions shall be
included in the purchase contract. The authority which organises
the alienation of the immovable property of a public entity may
grant the right to the buyer to corroborate the property acquired
in the Land Register in its own name if the buyer concurrently
corroborates pledge rights in the Land Register in favour of the
alienator.
[30 October 2008; 21 October 2010; 8 July 2011; 29 October
2015]
Chapter III
Sale at a Free Price, Exchange, or Investment in a Capital
Company
Section 37. (1) Property of a public entity may be sold
at a free price, provided that:
1) according to the accounting records data, the remaining
balance sheet value of the movable property is less than EUR 700.
In such case the sales price shall not be less than the remaining
value;
2) expenditures of an auction exceed the value of the
property;
3) the organised auction has been unsuccessful (Paragraph four
of Section 32);
4) immovable property is acquired by the person referred to in
Section 4, Paragraph four of this Law. In such case the sale
price shall be equal to the notional price (Section 8);
5) property is acquired by the official referred to in Section
4, Paragraph 3.1 of this Law. In such case the sale
price shall be equal to the notional price (Section 8).
(2) The advertisement regarding the sale of the property of a
public entity shall be published on the website of the authority
which organises the alienation of the immovable property (Section
9). Also other ways for notifying information may be used for the
placement of information so that it would reach as wide range of
applicants for alienation as possible.
(3) [13 June 2013]
(4) Paragraph two of this Section shall be applicable in the
cases where, in accordance with the provisions of this Law, the
auction of the property of a public entity is organised.
(41) If the property referred to in Section 4,
Paragraph 3.1 of this Law is sold at a free price to
the official referred to in Section 4, Paragraph 3.1
of this Law, the authority which organises the alienation of
property (Section 9) shall send the notice of alienation to the
relevant official. If, within seven days from the day when the
notice of alienation is sent, the official referred to in Section
4, Paragraph 3.1 of this Law does not apply to buy the
abovementioned property, the authority shall alienate such
property in accordance with the general procedures.
(5) If immovable property is sold at a free price to the
persons referred to in Section 4, Paragraph four of this Law, the
authority which organises the alienation of immovable property
(Section 9) shall send them the notice of alienation.
(6) If several persons who have the right of first refusal
apply, after receipt of the notice of alienation referred to in
Paragraph five of this Section, for the purchase of immovable
property within the term specified in the notice of alienation
which may not be shorter than one month from the day when the
notice of alienation is sent, an auction shall be organised
between such persons.
(7) If a person who has the right of first refusal does not
enter into a purchase contract, the Cabinet or the
decision-making body of a derived public entity may revoke the
decision to transfer for alienation or decide to change the type
of alienation.
[22 June 2005; 21 October 2010; 8 July 2011; 13 June 2013;
12 September 2013; 12 October 2023; 27 March 2024]
Section 38. (1) Immovable property of a public entity
may be exchanged for equivalent immovable property which is
necessary for ensuring the performance of the functions of a
public entity.
(2) Immovable property of a public entity to be exchanged and
equivalent immovable property of another person shall be
appraised in accordance with the procedures laid down in this Law
and the notional price thereof shall be set (Section 8).
(3) The difference between the prices of the immovable
properties to be exchanged may not exceed 20 per cent and this
difference shall be covered in cash.
(4) If several pieces of immovable property can ensure the
performance of the functions of a public entity, exchange of
immovable property shall be announced in the official gazette
Latvijas Vēstnesis. Applicants shall be selected by
applying the Public Procurement Law.
[22 June 2005; 18 June 2009; 10 September 2009; 21 October
2010; 20 June 2019]
Section 38.1 (1) Movable property of a
public entity may be exchanged for movable property of a public
entity or equivalent movable property of a private person which
is necessary for ensuring the performance of the functions of a
public entity or the institution thereof. Exchange of movable
property of a public entity may be applied without auctioning it
or selling it at a free price.
(2) Movable property of a public entity to be exchanged and
movable property of another person shall be appraised in
accordance with the procedures laid down in this Law and the
notional price thereof shall be set (Section 8).
(3) The difference between the prices of the movable
properties to be exchanged may not exceed 20 per cent, except for
the cases where the movable property is exchanged by public
entities between themselves. The difference of notional prices of
the movable properties to be exchanged shall be covered in
cash.
(4) Exchange of movable property of a public entity shall be
announced on the website of a public entity or the institution
thereof. The Cabinet shall lay down the procedures by which a
public entity or the institution thereof selects an offer for the
exchange of a movable property of a public entity for a movable
property of another person.
[18 June 2009; 21 October 2010; 8 July 2011]
Section 39. (1) Movable property of a public entity may
be alienated by transferring it into the ownership of a supplier
and performing set-off if this movable property is procured in
accordance with the Public Procurement Law. The respective type
of alienation may be used without auctioning it or selling it at
a free price.
(2) Property to be transferred shall be appraised and the
notional price thereof shall be set in accordance with the
provisions of this Law. Set-off shall be performed in the amount
of the notional price of the property to be transferred.
(3) A condition for the transfer of movable property into the
ownership of a supplier and set-off shall be included in the
tender rules.
[18 June 2009; 21 October 2010]
Section 40. (1) The decision to invest property of a
public entity in the equity capital of a newly established
capital company shall be taken by the Cabinet or the
decision-making body of a derived public entity respectively but
in the equity capital of an existing capital company - by the
authority (official) specified in Section 5 or 6 of this Law
respectively.
(2) Property to be invested in a capital company shall be
appraised in accordance with the procedures laid down in the
Commercial Law.
[30 October 2008; 21 October 2010]
Section 41. (1) A contract for the purchase or exchange
of immovable property shall be signed by the Minister for Finance
or an authorised person thereof on behalf of the State, by the
head of the decision-making body of a derived public entity or an
authorised person thereof on behalf of the relevant derived
public entity, but a contract for the purchase or exchange of
movable property shall be signed by the head of a public entity
or the institution thereof that possesses or holds the property
or an authorised person thereof, or the head of the managing body
of a capital company that possesses or holds the property or an
authorised person thereof.
(2) If property of a public entity has been sold on the hire
purchase basis or under other special conditions for alienation,
the conditions of Section 36, Paragraphs two and three of this
Law shall be taken into account when entering into a
contract.
(3) Documents on the investment of a property of a public
entity in a capital company shall be signed by a representative
of the holder of capital shares on behalf of the public
entity.
[30 October 2008; 21 October 2010]
Chapter IV
Transfer of Property of a Public Entity without
Consideration
[21 October 2010]
Section 42. (1) State immovable property may be
transferred into ownership of a derived public entity without
consideration. The Cabinet shall specify in its decision to
transfer the State immovable property into ownership of a derived
public entity without consideration the functions of or the
administration task delegated to the derived public entity for
the performance of which the immovable property is transferred.
When corroborating the ownership rights of the derived public
entity to the immovable property, a note shall be made in the
Land Register on the restrictions of rights specified in the
decision by the Cabinet. If the immovable property transferred is
no longer used for the performance of the functions or the
delegated administration task which has been specified in the
decision by the Cabinet to transfer the State immovable property
into ownership of the derived public entity without
consideration, the derived public entity shall transfer this
property to the State without consideration.
(2) Immovable property of a derived public entity may be
transferred into ownership of another derived public entity or
State without consideration. The decision-making body of the
derived public entity shall specify in its decision to transfer
the immovable property of the derived public entity without
consideration the State administration function, the function of
or the administration task delegated to the derived public entity
for the performance of which the immovable property is
transferred. When corroborating the ownership rights of the
derived public entity or State to the immovable property, a note
shall be made in the Land Register on the restrictions of rights
specified in the decision by the derived public entity. If the
immovable property transferred is no longer used for the
performance of the State administration functions, the function
of or the administration task delegated to the derived public
entity which has been specified in the decision by the
decision-making body of the derived public entity to transfer the
immovable property of the derived public entity without
consideration, the State or the derived public entity shall
transfer this property without consideration to the derived
public entity who has transferred this immovable property.
(21) If the State administration function is
transferred to a derived public entity, the State shall be
obliged to, once the function is transferred, transfer into
ownership of the derived public entity without consideration the
immovable property used for ensuring the performance of the
function, except for office buildings if so required by the
derived public entity. If the immovable property transferred is
no longer used for ensuring the relevant function, the derived
public entity shall transfer the immovable property owned by it
back to the State without consideration, if so required by the
State.
(22) If the function of a derived public entity is
transferred to the State or another derived public entity, the
derived public entity shall be obliged to, once the function is
transferred, transfer into ownership of the State or the relevant
derived public entity without consideration the immovable
property used for ensuring the performance of the function,
except for office buildings, if so required by the State or the
derived public entity. If the immovable property transferred is
no longer used for ensuring the relevant function, the derived
public entity shall transfer the immovable property owned by it
back to the other derived public entity without consideration, if
so required by the other derived public entity.
(23) If the immovable property transferred has
become unsuitable for the performance of the relevant function or
the delegated administration task, a public entity may propose
that this immovable property is replaced with immovable property
of another public entity by stating its reasons.
(24) If the immovable property transferred by the
State has become unsuitable for the performance of the relevant
function or the delegated administration task but the function or
the delegated administration task is preserved and the property
is not necessary for another public entity or the institution
thereof, the Cabinet may, following a reasoned proposal of a
derived public entity, authorise the alienation of such immovable
property by an order in accordance with the procedures laid down
in this Law. The Cabinet shall specify in its order the authority
which organises the appraisal and alienation of the specific
immovable property and the public entity to whose budget the
funds acquired as a result of the alienation shall be transferred
after covering the actual expenditures of alienation. If the
funds acquired as a result of the alienation or part thereof are
to be transferred to the budget of a derived public entity after
covering the actual expenditures of alienation, the Cabinet order
shall specify in what amount, for what purpose and for the
development of which immovable property and associated
infrastructure the funds acquired as a result of alienation shall
be allocated.
(25) Immovable property of a public entity which
has been transferred without consideration for the performance of
functions or delegated administration tasks which are not related
to economic activities may be used for the performance of
ancillary services or complementary economic activities.
Immovable property of a public entity which has been transferred
without consideration for the performance of functions or
delegated administration tasks which are related to economic
activities may be used for the performance of such activities in
compliance with the conditions resulting from the European Union
law in the field of the control of aid for commercial activity.
The conditions for granting aid for commercial activity shall be
indicated by the Cabinet in the decision to transfer the State
immovable property into ownership of the derived public entity
without consideration.
(26) State or local government immovable property
may be transferred without consideration into the ownership of
the State or local government respectively in order to be used as
a type of consideration compensation in accordance with the laws
and regulations regarding the alienation of the immovable
property necessary for public needs, provided that the relevant
public entities have agreed upon this. The decision by the
Cabinet or a local government council to transfer immovable
property into the ownership without consideration shall state
that the immovable property is transferred in order to be used as
a type of consideration compensation for the implementation of a
specific project. In corroborating the ownership rights to the
immovable property, a note shall be made in the Land Register on
the restrictions of the rights specified in the decision by the
Cabinet or the local government council. If the immovable
property transferred is not used as a type of consideration
compensation during the implementation of the project, it shall
be immediately transferred to the State or local government
without consideration.
(27) In the cases referred to in this Section,
institutions of a public entity or of a derived public entity
shall be released from the payment of the processing fee for the
corroboration of the ownership rights in the Land Register.
(3) Movable property of a public entity may be transferred
without consideration into the ownership of the State, derived
public entities, and also other bodies governed by public law,
public benefit organisations, or social enterprises. If the
movable property of a public entity which has been transferred
without consideration is used for the performance of economic
activities, conditions for the aid for commercial activity shall
be complied with.
(4) Movable property of a public entity may be given as a gift
and donated in accordance with the procedures and in the cases
laid down in other laws and Cabinet regulations.
[21 October 2010; 8 July 2011; 13 June 2013; 29 October
2015; 16 June 2016; 1 February 2018; 7 December2017; 2 June 2022;
12 October 2023]
Section 42.1 (1) Immovable property under
jurisdiction of the State or local government may be transferred
into the ownership without consideration by following the
restrictions laid down in the laws and regulations regarding the
handling of the immovable property under jurisdiction and the
provisions of Section 42 of this Law if the immovable property
under jurisdiction of the State or local government is registered
in the Land Register on behalf of the State or local government
concurrently with the corroboration of the ownership rights of
the acquirer to the relevant property.
(2) The decision by the Cabinet or a local government council
to transfer immovable property shall authorise the acquirer of
the immovable property to sign a corroboration request for the
registration of the immovable property in the Land Register, and
also perform any other activities necessary for registering the
relevant property in the Land Register. In such case, the
institution shall be released from the payment of the processing
fee which is related to the registration of the immovable
property and the corroboration of ownership rights in the Land
Register.
(3) All activities related to the registration of the
immovable property under jurisdiction of the State or local
government in the Land Register shall be performed by the
acquirer from its own budget funds, except when these public
entities have agreed otherwise.
[1 February 2018]
Section 43. In the cases referred to in Sections 42 and
42.1 of this Law, the decision to transfer property of
a public entity into the ownership without consideration shall be
taken by the authorities (officials) referred to in Sections 5
and 6 of this Law.
[1 December 2005; 21 October 2010; 1 February 2018]
Section 43.1 (1) The State movable property
may be transferred into the ownership of foreign governments and
international organisations without consideration. In such case,
the decision to transfer movable property shall be taken by the
Cabinet on a case-by-case basis.
(2) The Cabinet shall lay down the procedures for transferring
the State movable property into the ownership of foreign
governments and international organisations without
consideration.
[1 December 2005; 22 March 2007; 29 October 2015 /
Amendment regarding words "into the ownership of public profit
organisations", and also exclusion in Paragraph one shall come
into force on 1 March 2016. See Paragraph 18 of
Transitional Provisions]
Chapter V
Special Provisions for the Alienation of Individual Immovable
Property
Section 44. (1) Persons who may be bodies governed by
land ownership rights in accordance with the law may acquire
ownership of the land of a public entity.
(2) The restriction referred to in Paragraph one of this
Section shall also be applicable in the cases where built-up land
is alienated.
(3) A plot of land owned by a public entity, if in respect
thereof an application has been submitted for the restoration of
ownership rights, and also a plot of land on which a nationalised
building property or another nationalised object is located, if
in respect thereof an application has been submitted for the
restoration of ownership rights, may not be alienated until
deciding on the application but if court proceedings have been
initiated - until the day when a court ruling has entered into
effect.
(4) A plot of land owned by a public entity on which a
building (structures) owned by another person (joint owners) are
located may only be sold to the owner of the building (structure)
registered in the Land Register (all joint owners in proportion
to their shares of the joint property).
(5) If the building (structure) is an autonomous property
object according to Section 14, Paragraph one, Clause 1, 2, 3, or
4 of the law On the Time Period of Coming into Force and the
Procedures for the Application of the Introduction, Parts on
Inheritance Rights and Property Rights of the Renewed Civil Law
of 1937 of the Republic of Latvia and the owner of the building
(structure) cannot exercise or does not exercise his or her right
of first refusal to a built-up plot of land, he or she shall have
the statutory land use rights to such plot of land and the
obligation to pay the statutory fee for land use. The respective
plot of land shall not be alienated to other persons, except when
a public entity transfers a built-up plot of land to another
public entity without consideration for the performance of the
State administration functions. If the person referred to in
Section 4, Paragraph four, Clause 9 of this Law cannot exercise
or does not exercise his or her right of first refusal to a
non-residential building (structure) of a public entity and the
plot of land on which also the building (structure) owned by this
person is located, he or she shall have the statutory land use
rights and the obligation to pay the statutory fee for land use
for the plot of land which is functionally adjacent to the
building (structure) owned by him or her. The respective
non-residential building (structure) of a public entity and the
plot of land shall not be alienated to other persons, except when
a public entity transfers immovable property to another public
entity without consideration for the performance of the State
administration functions.
(6) [21 June 2007]
(7) A plot of land owned by a public entity and leased to the
person referred to in Section 4, Paragraph four, Clause 8 of this
Law may not be alienated to other persons during validity of a
lease contract.
(8) An inter-area of land for which a connection to a common
use street (road) or an inter-area of land which is necessary to
ensure a connection to a common use street (road) cannot be
provided may be alienated in accordance with the procedures laid
down in this Law to the following persons:
1) the land owner or all joint owners to whose land the
relevant inter-area of land is adjacent;
2) the owner or all joint owners of a building (structure)
registered in the Land Register if they also wish to purchase the
plot of land on which the building (structure) owned by them is
located and if the relevant inter-area of land is adjacent to
this land.
[22 June 2005; 21 June 2007; 21 October 2010; 8 July 2011;
13 June 2013; 29 October2015; 12 October 2023 / The new
wording of Paragraph five shall come into force on 1 January
2024. See Paragraph 21 of Transitional Provisions]
Section 44.1 (1) The State joint-stock
company State Real Estate or the decision-making body of a
derived public entity shall, within a month after approval of the
notional price, send the notice of alienation to the person who
has the right of first refusal to the built-up plot of land. The
notice shall indicate the following:
1) the address and cadastre designation of the plot of
land;
2) the total area of the plot of land;
3) the price of the plot of land;
4) the means of payment;
5) the conditions for the payment for the purchase of the plot
of land;
6) the documents and information to be submitted to the
alienating authority in order to enter into a purchase contract
for the plot of land.
(2) The State joint-stock company State Real Estate or the
decision-making body of a derived public entity shall, within
four months after the day of receipt of the notice, ask the
person who has the right of first refusal in the notice of
alienation to:
1) provide a reply indicating the preferable payment deadline
regarding settlements for the plot of land;
2) pay the entire purchase price or, in the case of a hire
purchase contract, an advance payment in the amount of 10 per
cent of the purchase price.
(3) If the person who has the right of first refusal provides
a reply and asks to enter into a purchase contract after the time
limit referred to in Paragraph two of this Section, the State
joint-stock company State Real Estate or the decision-making body
of a derived public entity shall only organise the appraisal of
the relevant plot of land after the person who has the right of
first refusal has made an advance payment in the amount of 10 per
cent of the purchase price indicated in the previous notice of
alienation. After approval of the notional price, the State
joint-stock company State Real Estate or the decision-making body
of a derived public entity shall send a new notice of alienation
to the person who has the right of first refusal.
(4) If the person who has the right of first refusal does not
enter into a purchase contract after receipt of the repeated
notice of alienation, expenditures for the appraisal of the plot
of land shall be deducted from the advance payment made.
(5) When selling a built-up plot of land of a public entity on
hire purchase basis, the hire term may not exceed five years. A
buyer shall pay six per cent a year of the outstanding part of
the purchase price for the deferred payment and default interest
amounting to 0.1 per cent of the delayed amount of payment for
each day of delay - for the delayed payment deadlines specified
in the purchase contract. These conditions shall be included in
the purchase contract. The authority which organises the
alienation of the immovable property of a public entity may grant
the right to the buyer to corroborate the property acquired in
the Land Register in its own name if the buyer concurrently
corroborates pledge rights in the Land Register in favour of the
alienator.
(6) If the owner of a building (structure) alienates the
building (structure) during the validity of the hire purchase
contract referred to in Paragraph five of this Law, a contract
for novation of the respective hire purchase contract shall be
entered into with the new owner thereof. Failure to enter into
the novation of the respective hire purchase contract and also
other contract termination cases provided for in the hire
purchase contract shall lead to the consequences specified in the
contract for the case where the seller exercises the right to
withdraw from the contract unilaterally. If the contract does not
prescribe a contractual penalty, the buyer shall pay a
contractual penalty in the amount of the advance payment made.
After deduction of the contractual penalty referred to in this
Paragraph of the Section, the fee for the deferred payment until
the day of termination of the contract calculated in accordance
with the procedures laid down in Paragraph five of this Section,
the default interest for late payments specified in the purchase
contract, and a contractual penalty for other violations of the
terms and conditions of the contract, if such have been
prescribed in the contract, the seller shall transfer to the
account indicated by the buyer the remaining amount of the part
of the purchase price paid by the buyer of the plot of land not
later than within three months after termination of the
contract.
[21 June 2007; 30 October 2008; 21 October 2010; 8 July
2011; 29 October 2015]
Section 45. (1) For the purpose of providing assistance
in solving apartment matters in the cases specified in the law On
Assistance in Solving Apartment Matters, it shall be offered to
transfer a State residential house or residential property into
the ownership of a local government in the administrative
territory of which the relevant State residential house or
residential property is located. If a local government council
takes the decision to take a State residential house or
residential property into the ownership of the local government,
it shall be transferred into the ownership of the local
government without consideration in accordance with the
provisions of Section 42 or 42.1 of this Law. If the
relevant local government council has not taken the decision
within a month or refuses to take a State residential house or
residential property into its ownership, it shall be alienated in
accordance with the procedures laid down in this Law.
(2) A local government shall not be offered to transfer into
its ownership a State residential house, residential property or
undivided shares thereof if the Cabinet has taken the decision to
auction them in accordance with this Law.
(3) When alienating a single-apartment house or residential
property owned by the State or local government for the use of
which a tenancy agreement has been entered into in accordance
with the procedures laid down in the law On Residential Tenancy,
it shall first be offered in writing for sale to a tenant and his
or her family members.
(4) A tenant or his or her family members may purchase the
rented single-apartment house or residential property if:
1) the tenant and his or her family members have entered into
a notarised agreement on who of them will acquire the rented
single-apartment house or residential property;
2) no claim has been brought before a court regarding the
termination of the tenancy agreement.
(5) If the tenant or his or her family members fail to notify
of the exercise of the right of first refusal within a month from
the day when the offer is received, the rented single-apartment
house or residential property shall be alienated in accordance
with the procedures laid down in this Law by taking into account
the following:
1) the single-apartment house which is entirely located on a
plot of land owned by another person is first offered for sale to
the owner (owners) of this land;
2) the residential property is first offered for sale to other
apartment owners of the residential house if the community of
apartment owners has taken the decision to establish the right of
first refusal of the apartment owners in accordance with the
procedures laid down in the Law on Residential Property and a
note has been made in the Land Register regarding existence of
the right of first refusal.
(6) Land owner (owners) and apartment owners may exercise
their right of first refusal within a month from the day when the
offer is received.
[8 June 2006; 30 October 2008; 21 October 2010; 8 July
2011; 29 October 2015; 1 February 2018]
Section 46.
[8 June 2006]
Section 46.1 (1) Joint property shall be
divided in an apartment house which is a joint property of a
public entity and another person by organising an auction, on the
basis of a Cabinet order or the decision by the decision-making
body of the relevant derived public entity.
(2) The State joint-stock company State Real Estate shall
organise the auction of the undivided share of the joint property
owned by the State. An authority designated by the
decision-making body of a derived public entity shall organise
the auction of the undivided share of the joint property owned by
the derived public entity.
(3) In the case of the division of joint property, the
following persons have the right of first refusal to the
undivided share of joint property:
1) the joint owner;
2) the land owner who owns the plot of land on which the
apartment house is located, unless the person referred to in
Clause 1 of this Paragraph has exercised his or her right of
first refusal.
(4) The persons referred to in Paragraph three of this Section
shall acquire the right of first refusal, provided that they
apply within a month from the day when a notice of an auction has
been published.
(5) After a third unsuccessful auction, the State joint-stock
company State Real Estate or the decision-making body of a
derived public entity may develop a project for the division of
joint property into residential properties or actual shares. The
project for the division of joint property shall be sent to the
joint owner for consideration and an advertisement shall be
published in the official gazette Latvijas Vēstnesis
regarding the project for the division of joint property.
(6) If the joint owner agrees to the offered project for the
division of joint property and a contract for the division of
joint property in residential properties or actual shares is
entered into, a public entity shall alienate the residential
properties owned in accordance with the procedures laid down in
this Law.
(7) If the joint owner does not agree to the offered project
for the division of joint property or has failed to provide a
reply within two months from the day when the advertisement has
been published in the official gazette Latvijas Vēstnesis,
the State joint-stock company State Real Estate or the
decision-making body of a derived public entity that has offered
the project for the division of joint property may propose
re-appraisal and organise a repeated auction of the undivided
share of the joint property owned by the public entity.
[8 July 2011; 20 June 2019]
Chapter VI
Final Provisions
Section 47. Funds acquired as a result of the
alienation of a property of a public entity shall be transferred
into the budget of the relevant public entity after covering the
alienation expenditures. The amount of alienation expenditures of
shall be determined in accordance with the procedures laid down
by the Cabinet.
[22 June 2005; 21 October 2010]
Section 48. When alienating a movable property or
aggregation of properties containing the movable property, a deed
on the transfer of property shall be drawn up.
Transitional Provisions
1. The law On the Procedures for the Alienation of State and
Local Government Property (Latvijas Republikas Saeimas un
Ministru Kabineta Ziņotājs, 1995, No. 11; 1996, No. 23; 2001,
No. 1) is repealed.
2. Until the moment when, in accordance with the Law on the
Completion of the Privatisation of the State and Local Government
Property and the Use of Privatisation Certificates, property
compensation certificates may be used as means of payment for the
alienation of an immovable property owned by the State or local
government:
1) the State fee for the corroboration of ownership rights to
the immovable property shall not be collected if privatisation
certificates have been fully or partly used as means of payment
in a transaction on the basis of which the immovable property has
been acquired;
2) when alienating land together with buildings (structures),
the price of land shall be determined separately.
[22 June 2005]
2.1 Section 45 of this Law shall be applicable
starting from 1 January 2006, except for the cases referred to in
the law On Privatisation of State and Local Government
Residential Houses.
[22 June 2005; 8 June 2006]
3. [1 February 2018]
4. Until adoption of the relevant Cabinet regulations but not
later than six months after coming into force of this Law,
Cabinet Regulation No. 325 of 7 November 1995, Regulations
Regarding Application of the Law On the Procedures for the
Alienation of State and Local Government Property, insofar as it
is not in contradiction with this Law.
5. [21 October 2010]
6. [22 June 2005]
7. Section 2, Paragraph two, Clause 3 of this Law which
stipulates that the Law shall not be applicable to the exchange
of State or local government plots of land if a State or local
government plot of land is used as a compensation shall come into
force on 1 January 2007.
[1 December 2005]
8. The Cabinet shall, by 1 December 2008, develop and submit
to the Saeima a draft law regarding amendments to this Law
in order to govern the transfer of immovable property into the
possession of State higher education institutions - derived
public entities - without consideration and also to govern the
conditions for further use of such property and the handling
thereof. The Cabinet shall, by 1 December 2008, develop and
submit to the Saeima also other draft laws related to the
matters to be governed.
[22 March 2007; 30 October 2008]
9. The Cabinet shall, by 1 December 2008, develop and submit
to the Saeima a draft law regarding the alienation of a
property of a public entity (also a State higher education
institution - a derived public entity) and also other draft laws
related to the alienation of a property of a public entity.
[22 March 2007; 30 October 2008]
10. Amendment which provides for the replacement of the words
"council (supervisory board)" with the word "council" shall come
into force on 1 July 2009.
[30 October 2008]
11. Until the moment when the Law on the Completion of the
Privatisation of the State and Local Government Property and the
Use of Privatisation Certificates is repealed, the notional price
of a built-up plot of land to be alienated may not be lower than
the lowest of the following values: the cadastral value of the
relevant plot of land or the cadastral value of the relevant plot
of land as at 31 December 2007.
[30 October 2008; 8 July 2011]
12. Until the moment when the Law on the Completion of the
Privatisation of the State and Local Government Property and the
Use of Privatisation Certificates is repealed, the notional price
of a non-built-up plot of land to be alienated may not be lower
than the lowest of the following values: the cadastral value of
the relevant plot of land or the cadastral value of the land as
at 31 December 2007.
[30 October 2008; 8 July 2011]
13. During the period from 1 August 2011 to 31 December 2012,
the following procedures for making payments are laid down:
1) payments made by the buyer of the immovable property for
the relevant immovable property shall be first directed by the
authority which performs alienation to the proportionate
discharge of the principal amount of the purchase price and the
interest payment for the deferred payments (instalments);
2) discharge of the principal amount of the purchase price and
the interest payment for the deferred payments shall not release
the buyer of the immovable property from the penalty payments
calculated in accordance with the procedures laid down in the
hire purchase contract;
3) if the buyer of the immovable property fails to make
payments provided for in the hire purchase contract for the
discharge of the principal amount and the interest payment for
the deferred payments, the authority which performs alienation
shall calculate the penalty provided for in the hire purchase
contract;
4) after discharge of the principal amount of the purchase
price of the immovable property and the interest payment for the
deferred payments, further payments made by this buyer of the
immovable property shall be directed to the discharge of the
penalty calculated in accordance with the procedures laid down in
the hire purchase contract by applying the procedures referred to
in Sub-paragraph 3 of this Paragraph.
[8 July 2011]
14. During the period from 1 August 2011 to 31 December 2012,
the authority which performs alienation may, upon request of the
buyer of the immovable property, defer the payment of the
principal amount of the purchase price specified in the hire
purchase contract for this immovable property and of the penalty
for a period requested by the buyer of the immovable property but
for no longer than one year if the buyer submits a document
issued by a competent authority regarding the fact that he or she
has paid the taxes specified by law and is also able to
demonstrate his or her solvency.
[8 July 2011]
15. Property which has been recognised as the property without
heirs under jurisdiction of the State (including the immovable
property registered in the Land Register in the name of the
State) before 30 June 2013 and in respect of which claims of
creditors have been submitted shall be alienated and claims of
creditors shall be satisfied in accordance with the procedures
laid down by Cabinet regulations that have been issued in
accordance with Section 73, Paragraph three of the Law on
Bailiffs. Section 5, Paragraphs eight, nine, and ten of this Law
shall not be applicable to this property.
[13 June 2013]
16. An authority into the possession of which the property
referred to in Paragraph 15 of these Transitional Provisions has
been transferred without consideration under a statement on the
appraisal of property and the State Revenue Service, if the
relevant property has not been transferred into possession, shall
transfer this property, by a deed of acceptance and delivery,
into possession, security and sale to a sworn bailiff of the
regional court to which he or she is assigned and in the
territory of which the relevant property is located in accordance
with the provisions of Section 71 of the Law on Bailiffs. The
deed of acceptance and delivery shall be accompanied by court
rulings and notarial deeds on the termination of an inheritance
case and documents containing information on the quantity of
property and claims of creditors. If a creditor has brought a
claim before a court, the property referred to in Paragraph 15 of
these Transitional Provisions shall be transferred to a sworn
bailiff for management, security and sale within a month from the
day when a court ruling has entered into effect in the relevant
case.
[13 June 2013]
17. A sworn bailiff shall, in accordance with the procedures
laid down by the Cabinet, compensate the possessor of immovable
property who has acquired the property without heirs under
jurisdiction of the State - immovable property - before 30 June
2013 for the expenditures (the immovable property tax paid,
public utility expenses, and payments related to the registration
of property in the Land Register in the name of the State) from
the funds acquired as a result of the alienation of the immovable
property. The possessor of the immovable property shall not be
responsible for the reduction of the property or value
thereof.
[13 June 2013]
18. Amendments to Section 42, Paragraph three and Section
43.1, Paragraph one of this Law (regarding the
transfer of movable property into the ownership of a public
benefit organisation) shall come into force on 1 March 2016.
[29 October 2015]
19. Amendments to Section 4 of this Law regarding the
supplementation of Paragraph three with the second sentence,
amendments to Section 5, Paragraph two of this Law and the new
wording of Paragraph four, and also the amendment regarding the
supplementation of Section 5 with Paragraphs 3.1,
3.2, 3.3, 4.1, and eleven,
amendments to Section 8 regarding the new wording of Paragraph
1.3, amendments to Section 9 regarding the new wording
of Paragraph 1.3, amendments to Paragraph one of
Section 10 (in relation to the appraisal and sale of immovable
property which has been transferred for privatisation or
recognised as the property without heirs or ownerless property
and the appraisal and sale of an inter-area of land or State
immovable property the cadastral value of which is below EUR
5000) shall come into force on 1 November 2019.
[20 June 2019]
20. The Cabinet shall issue the regulations referred to in
second sentence of Section 4, Paragraph three of this Law by 31
October 2019.
[20 June 2019]
21. The new wording of Section 44, Paragraph five of this Law
shall come into force on 1 January 2024.
[12 October 2023]
22. The new wording of Section 47 of this Law shall come into
force on 1 January 2025.
[12 October 2023 / The new wording of Section 47
shall be included in the wording of the Law as of 1 January
2025]
The Law has been adopted by the Saeima on 31 October
2002.
President V. Vīķe-Freiberga
Rīga, 19 November 2002
1 The Parliament of the Republic of
Latvia
Translation © 2024 Valsts valodas centrs (State
Language Centre)