10 Most Common Mistakes When Buying Property in Latvia
Purchasing property in Latvia is a structured legal and financial process where each step directly affects the final outcome. Below we outline the 10 most common mistakes encountered in practice by both local and foreign clients, along with clear explanations on how to avoid them.
Article prepared on 26th of December, 2025
10 Most Common Mistakes When Buying Property in Latvia
Purchasing property in Latvia is a structured legal and financial process in which every step affects the final outcome. Below is an in-depth overview of the 10 most common mistakes we encounter in practice when working with both local and foreign clients.
1. Making a Decision Based Only on Price
One of the most typical mistakes is focusing solely on the price per square meter or an apparently “good deal”.
In practice, a lower price often indicates:
- legal risks (encumbrances, unresolved documentation),
- poorer construction quality,
- higher future maintenance or renovation costs.
📌 Important: Price is a consequence — not a guarantee of quality or security.
The right question is not “How much does it cost?” but “What exactly am I getting for this price in the long term?”
2. Incomplete Document Review
Many buyers assume that if a property is listed, “everything must be in order”. In reality:
- the Land Register may contain encumbrances,
- renovations may be unapproved,
- the actual condition may not match the registered data.
📌 Important: A full document audit must be completed before reservation or payment of a deposit. After that, the risks become the buyer’s responsibility.
3. Lack of Understanding of Land Status
This is especially relevant for apartments and new developments. Buyers often fail to check:
- whether the land is owned by the property owners,
- whether the land is leased,
- whether there is shared ownership with third parties.
📌 Consequences: Monthly land lease payments, limited decision-making rights, and more complicated resale in the future.
4. Rushing the Decision Due to Emotional Pressure
Phrases like “there is another interested buyer” or “a decision must be made today” create the illusion of a once-in-a-lifetime opportunity.
As a result:
- contracts are not properly reviewed,
- critical questions are not asked,
- full due diligence is skipped.
📌 Fact: A good property does not disappear in one day, but a bad transaction can stay with you for years.
5. Underestimating Additional Costs
A common mistake is budgeting only for the purchase price. In reality, buyers must also account for:
- state duties,
- notary and Land Register fees,
- bank commissions,
- property valuation,
- renovation or adaptation costs.
📌 Result: Budget overruns, stress, and the need for additional financing.
Purchasing property in Latvia is a structured legal and financial process in which every step affects the final outcome. Below is an in-depth overview of the 10 most common mistakes we encounter in practice when working with both local and foreign clients.
1. Making a Decision Based Only on Price
One of the most typical mistakes is focusing solely on the price per square meter or an apparently “good deal”.
In practice, a lower price often indicates:
- legal risks (encumbrances, unresolved documentation),
- poorer construction quality,
- higher future maintenance or renovation costs.
The right question is not “How much does it cost?” but “What exactly am I getting for this price in the long term?”
2. Incomplete Document Review
Many buyers assume that if a property is listed, “everything must be in order”. In reality:
- the Land Register may contain encumbrances,
- renovations may be unapproved,
- the actual condition may not match the registered data.
3. Lack of Understanding of Land Status
This is especially relevant for apartments and new developments. Buyers often fail to check:
- whether the land is owned by the property owners,
- whether the land is leased,
- whether there is shared ownership with third parties.
4. Rushing the Decision Due to Emotional Pressure
Phrases like “there is another interested buyer” or “a decision must be made today” create the illusion of a once-in-a-lifetime opportunity.
As a result:
- contracts are not properly reviewed,
- critical questions are not asked,
- full due diligence is skipped.
5. Underestimating Additional Costs
A common mistake is budgeting only for the purchase price. In reality, buyers must also account for:
- state duties,
- notary and Land Register fees,
- bank commissions,
- property valuation,
- renovation or adaptation costs.
6. Ignoring the Technical Condition of the Property
An interior may look attractive, but:
7. Not Reading the Contract Content Carefully
Many buyers treat the contract as a formality. However, the contract defines:
Standard contracts often protect the seller, not the buyer.
8. Choosing a Property Unsuitable for the Intended Purpose
A property may be:
9. Lack of Knowledge of Local Specifics (Especially for Foreign Buyers)
Latvia has legal and practical nuances that are not always intuitive:
10. Not Entrusting Transaction Management to Professionals
A self-managed transaction usually means:
Conclusion
The biggest mistake in purchasing property is not choosing the wrong property — it is choosing the wrong approach.
A structured process, proper understanding, and professional guidance help avoid risks that otherwise only become visible after the transaction is completed.
👉 Planning to buy property in Latvia?
Apply for an individual consultation and receive a clear, structured purchase process without unnecessary risks.
🤝 THANK YOU FOR YOUR TIME!
An interior may look attractive, but:
- walls may have poor sound insulation,
- ventilation may be insufficient,
- engineering systems may be outdated.
- a technical inspection,
- understanding construction details,
- knowledge of building management quality.
7. Not Reading the Contract Content Carefully
Many buyers treat the contract as a formality. However, the contract defines:
- liability for delays,
- penalty clauses,
- risks in force majeure situations.
Standard contracts often protect the seller, not the buyer.
8. Choosing a Property Unsuitable for the Intended Purpose
A property may be:
- suitable for living,
- unsuitable for renting,
- weak in terms of long-term value preservation.
- low rental demand,
- a narrow target audience,
- limited liquidity.
9. Lack of Knowledge of Local Specifics (Especially for Foreign Buyers)
Latvia has legal and practical nuances that are not always intuitive:
- municipal pre-emption rights,
- restrictions on agricultural land,
- differences between resident and non-resident buyers.
10. Not Entrusting Transaction Management to Professionals
A self-managed transaction usually means:
- many involved parties,
- uncoordinated communication,
- a higher risk of mistakes.
- proper sequence,
- control,
- clear responsibility.
Conclusion
The biggest mistake in purchasing property is not choosing the wrong property — it is choosing the wrong approach.
A structured process, proper understanding, and professional guidance help avoid risks that otherwise only become visible after the transaction is completed.
👉 Planning to buy property in Latvia?
Apply for an individual consultation and receive a clear, structured purchase process without unnecessary risks.
🤝 THANK YOU FOR YOUR TIME!
Article Authors:
- Aivita OšaReal estate agent
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