Discussion: Land and building – together or separately?

Place: Court House Conference Hall (4th floor), Abrenes iela 3, Riga
Time: 3 Mar 2011 12:00
Working language: Latvian

On 3 March, SORAINEN Latvia senior associate Jānis Līkops delivered a presentation on the subject "Construction rights (a contract concluded on another person's rights to use a land plot with the right to construct buildings (constructions) on it)" in discussion on "Land and building – together or separately?". The discussion, organised by the Latvian Ministry of Justice, was attended by state officials Minister of Justice Aigars Štokenbergs and Saeima deputy Gaidis Bērziņš.

In Latvia, the general principle of undivided property is established for immovable properties in that buildings are attached to land. During land reform, upon renewing title to an immovable property the former owner or their heir have often faced a situation where the land owner is one person but the owner of a building (construction) on the land is another person. In this situation, so-called compulsory lease relations are established leading to property divided either compulsorily or voluntarily when the land plot owner agrees (on the basis of a legal transaction).

The discussion covered three possible options for further action:

1) to facilitate the existence of undivided property (the land and the building (construction) belongs to one and the same person) without allowing any formation of new divided properties;

2) to implement the institution of construction rights (a contract concluded on another person's rights to use a land plot with the right to construct buildings (constructions) on it);

3) to continue the existence of divided property by extending options to form separate land and separate building (construction) properties determining the corresponding legal regulation.

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