LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Mantas Lideika, WALLESS
2.2 Laws Applicable to Transfer of Title The transfer of title is governed by the Lithu - anian Civil Code. There are no special laws that would apply to the transfer of any specific types of real estate (eg, residential, industrial, offices, retail, hotels). However, some laws (eg, the Law on Forests, the Law on Agricultural Land) pro - vide some restrictions regarding the transfer of ownership rights to specific types of land (agri - cultural or forest land). These restrictions relate to subjects that have a priority right to acquire land, to the amount of land that can be acquired, etc. Discussions are currently underway as to whether the limitations on the acquisition of agri - cultural land should be lifted. 2.3 Effecting Lawful and Proper Transfer of Title All real estate transactions related to disposal or restraint of disposal should be confirmed by the public notary. The ownership of real estate passes over from the moment it is handed over to the buyer. The handover of real estate is to be documented by a separate handover deed unless the parties agree that the sale and pur - chase agreement itself constitutes a handover deed of real estate, in which case the ownership of the real estate passes over from the moment such an agreement is entered into. The pandemic-related limitations in governmen - tal office functionality and in-person availability for document signing or notarisation did result in new procedures for the documentation and completion of real estate transactions. Most documents, such as sale and purchase agree - ments, and powers of attorney, can now be approved via virtual meetings. All real estate in Lithuania is registered in the Real Estate Register, which provides comprehensive information on a real estate owner (including the
transfers of title), leases, mortgages, seizures and other encumbrances registered in respect of real estate, and also regarding ongoing law - suits, decisions of authorities affecting the real estate (eg, decisions regarding expropriation procedures), etc. Thus, an investor can receive up-to-date data on any real estate at any time. By virtue of law, data recorded in the public reg - ister is deemed accurate and true (prima facie evidence) unless rebutted. As a result, given that the registration system in Lithuania is compre - hensive and reliable, title insurance is not com - mon. 2.4 Real Estate Due Diligence Buyers usually carry out real estate due diligence before entering into a transaction. Typically, the buyer carries out legal, commercial (if the real estate is acquired through an investment vehi - cle rather than directly), financial, technical and environmental due diligence. Any type of due diligence normally includes three parts. • Preparation – this includes the identification of objects, goals and timelines, as well as entering into confidential and non-disclosure agreements. • Investigation – this includes the collection of facts and documents from both the seller and the buyer. The information is mainly gath - ered according to the checklist provided by the buyer team. Typically, all the information requested by the buyer and its consultants is uploaded to virtual data rooms; in today’s world, it is quite rare to have a physical data room. This stage also includes the analysis and evaluation of the information and material provided, and questions or interviews with the management and relevant personnel of the seller.
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