A client of LUMOS office has successfully concluded a contract of purchase of real estate for the needs of the plant in the territory of the former Riga Train Wagon Building Plant in the amount of more than 500 thousand euros. Preparation and verification of transaction documentation, as well as identification of risks associated with the transaction, in the interests of the client were performed by the experts of LUMOS office.
In the process of concluding the deal, LUMOS lawyers and lawyers conducted an in-depth risk analysis to ensure that the interests of the client are respected taking into account the location of the purchase object in joint ownership. The acquisition of imaginary shares of joint ownership is always associated with an increased risk – before purchasing a property, it is necessary to analyze the provisions of the co-owner agreement and take the necessary steps to provide the buyer with full access to the communications and infrastructure to satisfy client’s business needs after the acquisition of the property.
According to the provisions of the Civil Law, the right of ownership, which belongs to the same undivided thing to several persons not in real, but only in imaginary parts, so that only the content of the right is divided, is the right of joint ownership. The object of joint ownership, as a whole and in certain separate parts, may be handled only with the consent of all joint owners; but if one of them acts alone, that action is not only invalid, but also imposes an obligation on the latter to compensate the others for the damage they have suffered as a result.
In practice, co-ownership relationships create a lot of confusion and disputes between co-owners, which are not always resolved by legal means. When buying real estate in Latvia, special attention must be paid byforeign investors who might be unfamiliar with the institute of joint ownership rights and its consequences, and at the time of purchase may have no idea that they are buying an imaginary part, instead of a real part of the property.
LUMOS lawyers provide support to foreign companies and other clients by comprehensively identifying the factual and legal status of the object of purchase. Thus, the client obtains complete information about the object of purchase and can make a decision on the purchase of real estate based on full-fledged and transparent data.