Real Estate 2024

LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Mantas Lideika, WALLESS

6.20 Registration Requirements There is no obligation to register lease agree - ments in the public register. However, only registered lease agreements may be invoked against third parties (eg, the new owner of the real estate). The costs for registering the lease agreement with the Real Estate Register are minor, amount - ing to EUR7.33. Higher fees may apply for expe - dited registration. 6.21 Forced Eviction Generally, a landlord seeking the eviction of their tenant is required to apply to court. If the tenant fails or refuses to vacate the premises after the adoption of the final decision in favour of the landlord, the latter will need to apply to a bailiff for the enforcement of the court decision. The length of an eviction proceeding depends on a number of circumstances, such as the availa - bility of written evidence, the tenant’s objections, etc. In the best-case scenario, the first-instance court’s decision (which may be appealed) could be expected in approximately two to three months after application to the court. Although there is no extensive case law sur - rounding the landlord’s rights to exercise self- defence, commercial leases usually contain a right for the landlord to cut off the supply of electricity and other public utilities, lock the doors, make an inventory of, and remove, the tenant’s property and invoke other similar meas - ures against a tenant who refuses to vacate the leased premises. 6.22 Termination by a Third Party Termination of a lease by a third party is not common, and can only occur in specific cir - cumstances (defence of public interest, land

expropriation, etc). Usually, this process is time- consuming, as it may involve legal proceedings to contest the termination in court. 6.23 Remedies/Damages for Breach In the event of a tenant breach leading to lease termination, the damages are usually limited to direct expenses suffered by the landlord. These expenses are covered either by stipulating a fixed sum (either as an exact amount or as a percent - age of the lease fee) of liquidated damages in the agreement or by requesting the tenant to cover the amount of damages through documented evidence. In some cases, the parties agree that the tenant is also responsible for any non-direct damages suffered by the landlord (such as the difference between the existing lease fee and the potential fee obtainable from third parties under market conditions). However, this practice is not widely adopted due to the prevailing conditions of the lease market, where tenants typically hold a stronger negotiating position. Landlords typically hold security deposits post - ed by tenants. These security deposits are usu - ally kept in cash. 7. Construction 7.1 Common Structures Used to Price Construction Projects Private developers use their own forms of con - tracts, and the various wording is settled dif - ferently in every project. When it comes to the public sector, Red and Yellow forms of FIDIC 1999/2017 are used most frequently. Develop - ers with Scandinavian capital prefer to use a YSE form, which is also used in the market. Construction projects are usually priced using a fixed-price model, especially when it comes

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