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Debt Follows the Apartment – What This Means for Property Owners

Rīgas namu pārvaldnieka pārvaldītas ēkas fasāde 2025-06-20

The Latvian Parliament has adopted amendments to the Law on Apartment Ownership, introducing a new principle effective from January 1, 2026: “Debt follows the apartment.”

This means that when an apartment with outstanding debts is sold, the new owner will be informed of the debt and will assume responsibility for settling it.

What Kind of Debt Will Transfer?

This rule applies only to relatively recent debts—specifically, those incurred within the three years prior to the change of ownership. Any older debts will remain the responsibility of the previous apartment owner.

The debt transfer applies not only to purchased apartments, but also to those acquired through other means, such as gifts. In the case of inherited apartments, the debt has always transferred with the property and will continue to do so.

However, if an apartment is seized forcibly, such as due to unpaid debts, the original owner will remain liable for those obligations.

What Debts Will the New Owner Be Required to Pay?

The new apartment owner must cover debts from the past three years related to:

  • Property management fees
  • Utility services
  • Contributions to the building’s reserve fund
  • Land lease payments, if the land beneath the building is not owned by the apartment owners

Additionally, the new owner will be responsible for any late payment interest or penalties associated with those debts.

Under the new law, these payments must be made immediately after the apartment is acquired.

How to Find Out If an Apartment Has Outstanding Debt

The law requires that the current apartment owner disclose any unpaid debts to a potential buyer.

To make this easier, we’ve prepared a convenient payment status report that sellers can easily generate and share with interested buyers. This report is available via the portal www.e-parvaldnieks.lv under the “My Contracts” section by selecting:

Ekrānuzņēmums no portāla e-parvaldnieks.lv. Teksts attēlā: Jaunums - pieprasīt izziņu par maksājumu saistību izpildi.

Alternatively, the current owner or an authorized representative can request this report in person at any of our customer service centers.

Buyers must obtain this information from the seller, as the building management company is legally allowed to share it only with the property owner.

Can the New Owner Recover the Debt from the Previous Owner?

Yes. Although the new owner must pay the outstanding debts, the law allows them to seek reimbursement from the former owner through legal action.

An exception applies when both parties agree beforehand, for example, if the seller reduces the apartment’s price to reflect the amount of debt.

What If the Debt Itself Is Disputed?

If the new owner believes that the debt was incorrectly calculated or unjustified, they also inherit the right to dispute the debt. This means they can file a legal claim explaining why the payment was not valid and should not be enforced.

If the previous owner had already initiated legal proceedings, the new owner can take over and continue the case.