What should be clarified before selling the apartment?

Is it shared ownership? (5:42 am)

If it is shared ownership, then the first thing that should be found out is whether there is a sharing agreement. A sharing agreement is an agreement where common rules are agreed between these neighbors. The sharing agreement must be, if not with the owner himself, then with the house manager or caretaker. Such a contract provides that the owner waives the right of first refusal. If it is joint property, then it is one land register for the whole house, which means that when selling the property, it must be coordinated with all the owners of the house. Such steps must be taken because all other residents of the house have the first right to sell the property. Co-owners of the home are subject to the purchase agreement negotiated with the potential buyer. Janeviens does not apply within 2 months, then this offer must be published in Latvijas Vēstnes for another month and only then this property can be sold to other persons. If the above-mentioned points are not taken into account, after the sale of the property, co-owners of the building can apply for the property within a year.

Reconstructions (12:45)

How can you find out if the apartment has been remodeled? The first place to look is the inventory case. If what is mentioned in it differs or does not coincide with the real situation, then it is considered a reconstruction, which the appraiser will note in the evaluation of the apartment. It is possible that this will reduce the value of the apartment by 5% and the buyer will be given the opportunity by the bank to coordinate the reconstruction within a year. However, it is important to understand that conversions are different, so it is recommended to consult with knowledgeable specialists and/or architects who will be able to tell you exactly what actions are needed to harmonize this property. In some situations, the signature of only one neighbor is required, while in others, the signatures of all residents of the house are required. Registering the signatures of all residents can greatly complicate the purchase process, as it requires additional time and finances. In the case of serious reconstruction, which cannot be coordinated, it is possible to return the apartment to the original stage for approval by credit institutions.

Is the land under the building owned? (27:30)

In the real estate tax bill, it is possible to find out whether the land under the building is owned. Often you have to deal with properties where the land is leased. In this case, a rental fee must be paid. Situations are also possible when, if the land under the building is not owned, the bank refuses to finance the purchase of such property. The biggest risks are if the land owner has concluded a contract with the building owner, which provides for a lease of the land and this contract term has expired, then the land owner has the right to demand any amount of money from the residents of the house. This can lead to lawsuits and unpleasant situations.

Is the property exempt? (33:50)

If the owner does not have a plan for how and when to release the apartment to the next owners, then a situation may arise where the buyer offers his move-in period, but the current owner is not yet ready to move out of the apartment. If you are unable to agree in this way, the sale of the apartment may have to be postponed for a later time or canceled completely.

Will the property be purchased during the marriage? (24:40)

It is possible to find out such a nuance only at the sale of the apartment. This complicates and prolongs the process of selling an apartment because the owner tends to forget or has purchased the property during marriage. If the property was purchased during marriage, the spouse must be brought to the notary. For property purchased during marriage, both parties involved must give their consent to the sale of the apartment, even if the marriage is no longer valid. It happens that this information is revealed while at the notary’s office. In such cases, the sale may be postponed or the sale dates may be extended. The spouse’s consent can also be issued electronically. An electronically prepared consent facilitates the purchase process in situations where one of the parties is outside the country.

It should be understood whether the tax from the sale of the property is current. (39:10)

Capital gains tax is a tax that is 20% of the increase in the price of the apartment. Sometimes it is possible to postpone the sale of the apartment for a later time, because the owner must have been declared in the apartment for a year. However, if it is the only property and the current owner has decided to buy another property instead, then no tax will be payable.

Other burdens (29:32)

It is important to find out whether there are third parties whose consent is required for the sale of the apartment. For example, relatives who put marks in the sales contracts that prohibit the sale of the apartment in various situations. In the case of a mortgage, consent from the bank is required. Such information can be obtained by making an up-to-date land book, and not by looking at the one obtained during the purchase of the property. The owner must have a clear definition – why the property is being sold; the period in which the property is planned to be sold and the release dates. Such detailed information and a developed strategy will help the buyer take the seller and the sales process as a whole more seriously. For the easiest and most successful property sale, we recommend choosing a professional real estate agent who will guide you through the property sale process and help you understand all the nuances so that the sale process goes smoothly.