To simplify the transfer of use rights to jointly owned objects such as parking spaces and storage units among apartment owners, as well as to strengthen the legal status and legal certainty of such objects, the Ministry of Economics (MoE) has prepared amendments to the Apartment Property Law.
The amendments were approved by the government on Tuesday, 11 November.
After real estate developers have sold apartments together with the associated parking spaces, storage rooms and similar premises, in practice there is often a need to transfer these rights—for example, when one apartment owner no longer needs a parking space, while another wishes to acquire it.
The current practice of transfer and establishment of ownership rights is considered undesirable, as the existing regulatory framework does not provide clear rules for this process. As a result, differing practices have developed in Land Register entries—both with regard to the establishment of ownership rights and the transfer of such objects. In view of this, it is proposed to establish that an apartment owner has the right to uninterrupted use of a specific part of the jointly owned property, and that such rights are to be registered in the Land Register and may also be transferred.
In addition, amendments have been developed that will facilitate developers’ ability to create the necessary infrastructure when developing residential quarters. Clear preconditions will be established regarding the use of shared infrastructure and the allocation of maintenance costs among residential property owners. Shared infrastructure includes, for example, internal roads, children’s playgrounds, recreation areas and other landscaping elements. The proposed regulation addresses the current situation where legislation does not allow a developer, as owner, to impose an encumbrance on one of their properties for the benefit of another. The amendments will also define the rights and obligations related to the use of shared infrastructure.
“The changes introduced are a small but significant step toward resolving everyday practical situations—the issue of transferring parking spaces, storage rooms and other premises is relevant for many apartment owners whose living circumstances have changed over time since acquiring their property. At the same time, developers, especially in the case of residential quarters, often have their hands tied when they wish to create shared infrastructure for several buildings they own,” says Minister of Economics Viktors Valainis.
The drafted amendments are one of the measures included in the government’s action plan to reduce the administrative burden in the field of real estate development. For the amendments to enter into force, they must still be adopted by the Saeima.