LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Vygintas Kuprys, WALLESS
subject to a general limitation period for filing a claim with the court (which in most cases is ten years). The buyer cannot rely on the encumbrances over real estate and invoke remedy measures against the seller if the seller has notified the buyer of those encumbrances or if the buyer could have learned of them from the public registers. 2.6 Important Areas of Law for Investors Depending on the type of investment, it is important for an investor to consider planning and zoning, environmental law, competition law, etc. Merger clearance (required by the Law on Competition) is necessary when: • the total gross income of the companies participating in the merger (concentration) in Lithuania during the last financial year before the merger is more than EUR20 million; and • the total gross income of each of at least two companies participating in the merger dur - ing the last financial year before the merger is more than EUR2 million. 2.7 Soil Pollution or Environmental Contamination In the case of pollution or contamination, Lithu - ania implements the “polluter pays” rule. This means the buyer of a real estate asset will be held responsible for soil pollution or environ - mental contamination if they cannot identify the person responsible for the damage. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law Permitted uses of a parcel of real estate are asserted according to a master plan, or the detailed plan if one has been prepared. However, for certain developments, construction opportu - nities may be assured only after the construction
permit is issued. Until the issuing of the permits, the rights to develop the land plot are in danger due to the vague requirements of the Law on Architecture. The Law on Architecture also introduces region - al councils of architects, which may decide on the aesthetics of future developments and any developments that do not satisfy subjective cri - teria may be stopped. The Law on Spatial Plan - ning provides for the possibility of concluding an agreement on the implementation of the solu - tions of the detailed plan. However, in practice, these agreements are rarely concluded and they only regulate infrastructure development issues. 2.9 Condemnation, Expropriation or Compulsory Purchase Land expropriation procedures can only be initi - ated if the land is required for public needs and upon relevant compensation being provided to the owner. Land expropriation is initiated by the Lithuanian Land Service. The owners are duly informed about any initiated procedure and can participate in the evaluation of the compensa - tion. The State has a priority right to purchase private agricultural or forest land for sale within certain areas. Agricultural or forest land may also be compul - sorily purchased by the State where it appears that it was acquired by a buyer who infringed the rules and restrictions for the acquisition of the land. 2.10 Taxes Applicable to a Transaction A real estate acquisition transaction is subject to notarisation. The notary fee for the acquisition of real estate is equal to 0.37% of the transaction value and cannot exceed the established cap of
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