YIT implements a unique strategy in the development of Mārpagalmi

YIT, one of the leading construction companies and urban developers in the region of Northern Europe, is developing Mārpagalmi – a new residential quarter in one of the quietest corners of Āgenskalns, on Zemaišu iela, between Māra Pond Square and St. Albert’s Church. More about the project here. More than 600 apartments are planned to be built in the project.

The property development concept includes, among other things, the construction of a unique park, which will be accessible to all residents of the residential quarter. In order to ensure the ability of all owners of apartment properties in the residential quarter to decide on issues of management and use of the park, the ownership rights of the park will be allocated to the communities for apartment properties in these residential buildings, which will act as independent legal entities.

This is a unique case in Latvian history, because the legal capacity of communities of apartment owners at the regulatory level has been included in the Law on Residential Properties only since April 13, 2022. In particular, the first paragraph of Section 15 of the Law on Residential Properties now makes it clear that a community of apartment owners is a legal entity that can independently acquire property and other rights in rem (we talked about the amendments to the Law on Residential Properties in this webinar https://www.youtube.com/watch?v=jqAV2Pqx4RA). This is so far the first known case in which a community of apartment owners has acquired property rights in its own name.

Our role

We were honoured to assist YIT in developing a legal strategy for the development and disposal of the property, preparing relevant letters of intent, purchase, shared use of joint property and easement agreements, and community decisions; and to assist YIT in providing additional arguments to the land registry to ensure the registration of community property rights.

Our team

The client is represented by partner Jorens Jaunozols, senior associates Natālija Grāvele and assistant lawyer Martina Ķierpe.