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PROPERTY LAW
Types of ownership
Freehold
Ownership
• Civil Code of the Republic of Lithuania defines ownership
right as the right to: possess, use and dispose of an object of
ownership right at one’s will, without violating the laws and
the rights and interests of other person.
• Ownership right must be registered on the Real Estate
Register.
Co-Ownership
• According to the Civil Code co-ownership right is the right
of two or several owners to possess, use, and dispose of the
object of the right of ownership held by them as common.
• The object subject to common partial ownership is possessed,
used and disposed of by a common agreement of co-owners.
• Co-owners enjoy the right to buy the share in sale of the
commonly owned property at a price at which it is sold, and
under the same conditions.
• Expenses related to property maintenance and preservation,
taxes, dues and other payments are paid by each of the co-
owners in proportion to their respective shares.
Leasehold
Lease of buildings, construction works and installations
• A contract of lease of buildings, construction works and
installations shall have to be formed in written form.
• It may be invoked against third persons only if it is registered
in the Real Estate Register.
• Lease may be fixed-term or concluded for an indefinite
period, but in all cases the period of lease may not exceed one
hundred years.
• The payment of lease shall be determined upon the
agreement between the parties.
Lease of land
• The subject matter is a plot of land (or a part thereof) in the
state or private ownership formed in accordance with the
project of land-use planning or any other detailed document
of territorial planning, and registered with the Real Estate
Register within the procedure established by laws.
• A land lease contract shall have to be formed in written form;
• It may be invoked by the parties against third persons only if it
is registered with the Real Estate Register.
• The duration of lease of land in private ownership shall be
established upon the agreement between the lessor and the
lessee.
• The duration of lease of public land shall be established
upon the agreement between the lessor and the lessee;
nevertheless, the term may not exceed ninety-nine years.
• A shorter maximum duration of a land lease contract may be
stipulated by laws.
Long-term lease (emphyteusis)
• Is a right to use the plot of land or other immovable of another
provided the emphyteutic lessee does not aggravate its
quality, does not undertake to build construction works, to
plant perennial plants and perform other works thereon that
durably increase its value both of the land used or any other
immovable thing except upon the permission of the owner of
the land.
• May be established for a fixed or an indefinite period; the
term of emphyteusis may not be less than ten years.
• Is established by agreement between the owner of an
immovable thing and the emphyteutic lessee or by will.
• Remains due despite the fact that the owner or the
emphyteutic lessee changes.
• The emphyteutic lessee is bound to preserve and repair the
immovable at his own expense.
Rights affecting ownership
Easement (servitude)
• Is a right in respect of an immovable thing of another that
is granted for the use of that thing (the servient thing) or a
restriction of the right of the owner of that thing in order to
ensure a proper utilisation of the thing in favour of which the
servitude is established (the dominant thing).
• Remains due despite the fact that subject of the right of
ownership of the servient or dominant thing changed.
• May be established by laws, transactions and by a court
judgement while in cases stipulated by laws – by an
administrative act.
• Rights granted by servitude shall be exercised in accordance
to their intended destination in order to cause the least
inconvenience to the owner of the servient thing.
Usufruct
• Is the right (the right of the usufructuary) of use and
enjoyment, granted for a period of a person’s life or for a
certain period that may not be longer than a lifetime of a
person, of a thing of another and of its fruits, products and
revenues.
• May be established by laws, court judgements – in the cases
prescribed by laws, and by transactions.
• Remains due despite the fact that the owner of the thing in
respect of which the usufruct was established changed.
Mortgage
• Mortgage should be understood as the pledge of an
immovable thing to secure the performance of a present
or future debt obligation, when the mortgaged thing is not
transferred to the creditor.
• The object of a mortgage may be individual immovable things
(real property), registered with the Real Estate Register and
not withdrawn from the civil turnover that may be submitted
for a public forced auction.
• With the transfer of the mortgaged thing for the ownership of
another person, the mortgage follows the thing.
Pledge
• Pledge should be understood as a pledging of a movable thing
or real rights securing the discharge of an existing or future
debt obligation when the object of the pledge is transferred to
the creditor, a third person or remains with the pledge.
• Pursuant to the pledge, the creditor (the pledgee) has the
right to satisfy his claim from the value of the collateral
prior to other creditors, if the debtor fails to discharge the
obligation secured by the pledge (in the event of default).
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Investors Guide to Europe 2015