Buying land to build a house, part 1.

29. July, 2022

Buying land to build a house is the first step towards your dream of a home of your own. To make it all work out, it is important to clarify several key questions about the property before you buy, and to avoid the risk of unexpected extra costs during design and construction. The range of questions around buying land is quite wide, so this article on our website comes in two parts.

Choosing the location

Where should you build – in town, in the countryside or near a big city? When choosing, think about your current and future lifestyle and everyday life. How far will you have to drive to work, how will the children get to school, and where are the nearest grocery shop and pharmacy? If the plot is in a quiet, remote place, check how the road is maintained and whether it is cleared of snow in winter. When buying land further from towns, also expect extra transport and machinery costs during construction. If you plan to take out a bank loan, find out whether the future value of the property will be enough to get the loan.

Buying land and legal questions

First, make sure the plot is registered in the Land Register and that it really belongs to the seller. Also check that the plot is not mortgaged, rented or leased to a third party. Keep in mind that rights recorded in the Land Register, including a lease agreement, will also bind the new owner. Find out whether the seller needs the consent of a third party, for example the spouse’s consent if the seller is married. Check whether anyone has a right of first refusal on the property. To learn more about the legal side of buying land and find more information in various databases and e-services, we recommend the useful overview on Latvija.lv.

Permitted land use

Contact the municipality and the building authority to find out the permitted use of the plot, what can be built there and what other conditions apply for a building permit. The fact that there are other private houses next to the plot does not mean you will be able to build a house on it. The permitted use of a plot is usually set in the municipality’s spatial plan, local plan or detailed plan and building regulations. If the spatial plan allows building on the land, check the building restrictions, for example a limited building volume, number of storeys, or a requirement for the exterior to fit the overall architectural style of the area. There can also be specific restrictions, for example a ban on log houses.

The permitted land use and the spatial plan can sometimes be changed, for example from forest or agricultural land to building land. Whether this is possible depends on the specific situation and the municipality. If the change can be made, expect extra costs and time until all documents are in order. It is also worth asking about the municipality’s future plans – perhaps a motorway, a railway or industrial buildings are planned nearby. In rural areas, check whether there is industrial farmland right next to the plot where pesticides are used, which can harm quality of life and health.

Encumbrances

The property may have various encumbrances that restrict building. Red lines mark the boundaries of streets and the planting along them, such as rows of trees, pavements and utility corridors. A road servitude means there is a road on the plot that others use to reach their properties. Utility encumbrances are protection zones of power lines, communication lines, and gas or water pipes crossing the plot. If an overhead power line crosses the property, you must make sure no trees or bushes grow under it. Beautiful places surrounded by nature may be specially protected nature areas, where various building restrictions apply depending on the functional zoning.

Existing buildings on the plot

If there are already buildings on the plot, check with the building authority that they were not built without permission and that all of them were approved as required by law. Also check whether the buildings have been commissioned, whether they match the project and whether they have been rebuilt without permission. The new owner of the land will be responsible for dealing with the consequences of unauthorised construction, even if they did not build it themselves.

Forest land and deforestation

If there is forest on the plot, keep in mind that trees may not be felled without approval. When you get approval and agree on deforestation, you will have to pay compensation to the state or agree to plant forest elsewhere. The cost of deforestation can be found out from the State Forest Service or the regional forestry office. There are also companies that sell compensation rights for converting forest land to building land, which can reduce the costs of deforestation.

 

We will publish the second part of the article soon, so follow the news on our website, Facebook and Instagram.

Contact us if you would like to visit us and talk through your house plans in person!

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