Protect Yourself from Property Debts 2026

"Debt Follows the Apartment": A Vital Guide

The Latvian real estate market is undergoing a significant legal shift. According to recent amendments to the Law on Residential Property, a new principle—"debt follows the apartment"—has been introduced. This change aims to protect the community of apartment owners and service providers from unpaid bills.

Whether you are looking to sell real estate or buy an apartment with credit, understanding these rules is essential for transactions occurring after December 31, 2025.

What Does "Debt Follows the Apartment" Mean?

Under the new regulations, when a property is voluntarily sold, the new owner becomes liable for debts incurred by the previous owner. This is legally defined as a "statutory real burden" (likumiskā reālnasta), meaning the debt is attached to the property itself.

Key details of the new liability:

• 3-Year Limit: The new owner is responsible for debts incurred no more than three years prior to the acquisition.
• Types of Debt Included: Management fees, utility services, contributions to the building's savings fund, and statutory land use fees.
• Excluded Services: Debts for personal services like internet, television, and personal electricity remain the responsibility of the previous owner.
• Immediate Payment: The new owner is expected to cover these debts immediately after acquiring the property.

Critical Advice for Buying an Apartment in Riga

If you are exploring new apartment projects in Riga or looking for apartments in the Riga Center, you must exercise "due diligence." A major challenge is that this statutory real burden is not recorded in the Land Register.

Because the debt is only visible in the accounting of the property manager, a buyer cannot rely solely on public registries. To protect yourself:

1. Request a Certificate: The law now allows owners to request a formal statement of debt from the property manager.
2. Verify with your Agency: A professional real estate agency in Riga can help you navigate these checks.
3. Contractual Protection: Include a clause in the purchase agreement where the seller confirms there are no debts.

Tips for Sellers: How to Sell a Flat Quickly in Riga

Transparency is now the fastest way to sell an apartment or sell a house.

• Prepare your Documents: Have a fresh statement of account ready from your manager.
• Window Regulations (Starting 2026): Windows will no longer be considered "individual elements" but part of the building's external structure.
• Jurmala Market: This principle applies nationwide, so ensuring a clean debt history is vital for property for sale in Jurmala.

Can You Recover the Money?

If you find yourself paying off a previous owner's debt, the law allows you to sue the previous owner for reimbursement. Furthermore, new owners inherit the right to contest the validity of the debt in court.

Analogy for Understanding: Think of this new law as a "financial shadow" attached to the property. Previously, a seller could walk away and leave their shadow behind; now, the shadow is "glued" to the walls. When you buy the walls, you buy the shadow, unless you make sure the seller clears it before the sun sets on the deal.