Pirkuma līgums

A Latvian purchase agreement for immovable property — must be executed as a notarial deed and submitted to the Zemesgrāmata to transfer ownership legally.

What Is Pirkuma līgums?

In Latvia, a pirkuma līgums (purchase agreement) for immovable property must be authenticated by a notary (notārs) to be valid. The notary confirms the identity of the parties, reads the deed to them, and certifies the signatures. A simple written agreement without notarisation cannot transfer ownership.

The deed sets out the agreed purchase price, a description of the property by cadastral reference, representations by the seller about title and condition, and the parties' consent to register the transfer in the Zemesgrāmata.

After signing, the notary typically submits the registration application (nostiprinājuma lūgums) to the Zemesgrāmata on behalf of the buyer. This step is crucial — until registration the buyer is not the legal owner even though the deed is signed.

A preliminary agreement (priekšlīgums) may be used to reserve a property. It does not need to be notarised to be binding between the parties, but notarisation gives it effect against third parties. A deposit (rokasnaudu) is commonly paid under the preliminary agreement.

The total transaction costs include the notary fee, the registration fee, and stamp duty. In Latvia the stamp duty is 2% of the higher of the transaction price and the cadastral value, capped at a maximum. The notary fee is graduated based on transaction value.

Key Facts

Common Mistake

Paying the full price before registration. Always use a completion escrow arrangement or synchronise payment with the submission of the registration application to protect both parties.

Expert Tip

Engage a Latvian sworn attorney (zvērināts advokāts) before the notary appointment. The notary is neutral; only your own lawyer will review the contract from your perspective and negotiate favourable terms.

Frequently Asked Questions

Can the notary refuse to authenticate the deed?

Yes. If the property has an unresolved encumbrance, the seller lacks authority, or the transaction is illegal, the notary must refuse.

Are there restrictions on foreign buyers?

EU citizens can purchase freely. Non-EU nationals cannot buy agricultural or forest land. Residential and commercial property is generally open to all.

What if the seller has an existing mortgage?

The mortgage must be discharged before or simultaneously with the transfer. Typically the buyer's purchase funds are used to pay off the mortgage at completion.

Related Terms