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Valius Ąžuolas, the director of Seimas BFK, claimed that after an increase in the Registration Center fees in July, people were no longer registering inherited property en masse.
“People are massively refusing to register their inheritance, because when they hear that it used to cost between 80 and 100 euros, now 500 euros, people refuse to register, which creates legal chaos. If the residents refuse to register the property due to lack of finances, we will have many legal disputes, ”said V.Ąžuolas at the committee meeting.
Photo by Luke April / 15min / Valius Oak
After the Registry Center changed its fees, the Chamber of Notaries announced that the services provided by the Registry Center have risen in price two to five times since October, especially among notarial clients handling probate matters and individuals that transfer real estate.
Marius Stračkaitis, chairman of the Lithuanian Chamber of Notaries, stated at the committee meeting that some fees have been multiplied by ten, showing that a data comparison on how much notaries paid to the Registration Center in August, September and October .
He gave a specific example: a notary from the Vilkaviškis district paid 2000 euros to the Registration Center, collected from clients, and in October, almost 11 thousand. euros.
Photo from personal archive / Marius Stračkaitis
Will request to recalculate rates
V.Ąžuolas pointed out that the property left without the owner will demand more funds from the state, because it will have to be maintained and tried to sell it.
“So we try to save money in one place, but we spend it in another,” said the committee chairman.
It is true that the head of the Registry Center, Saulius Urbanavičius, objected that the number of cases in which residents do not recover inherited property has increased. According to him, there were 479 such cases in October, 100 more cases in July, and 150 more cases in January.
He argued that the new registration methodology was based on cost and that most services were cheaper. However, he agreed that there are situations where inheriting a small property costs less than registering it.
Sigismund Gedvila / 15min photo / Saulius Urbanavičius
After listening to all parties, the Seimas BFK decided to submit a request to the Government to review the increase in fees for the Registry Center.
“The fees of the Registry Center may be based on costs, but there are services that are the most sensitive and could be subsidized by the income collected by other services,” agreed Mykolas Majauskas, a conservative member of the commission.
Photo by Lukas Balandis / 15min / Mykolas Majauskas
The Ministry of Justice also proposes to reduce rates
The Registry Center offers around 290 different services. At the meeting, the head of the Records Center, Saulius Urbanavičius, assured that only a small part of the service fees had increased and the majority had decreased.
According to S.Urbanavičius, the methodology for calculating the fees was adopted following the recommendations of several auditing companies, whose main idea is that the price of the service should depend on the cost price.
It is true that he agreed that inheritance rates have increased.
“We are talking about inheritance, which is important, but for the most part, the part that was extremely relevant to companies, startups and other services, has fallen drastically dozens of times, because prices are based on the principle that the service more expensive requires human intervention. ” said the head of the Records Center.
Photo by Sigismund Gedvila / 15min / Records Center
S. Urbanavičius stated that the Registry Center analyzes the situation and solves the problems, for which he presented to the Ministry of Justice a proposal to apply compensation mechanisms in such cases, excluding the most sensitive groups of the population.
The Justice Ministry issued a press release on Tuesday indicating that it would also make proposals to the government a week later on how to reduce the high rates of inheritance or property donations. The new procedure would establish “maximum” or lower fees when registering ownership of multiple properties.
According to the Minister of Justice, E. Jankevičius, if the tariff methodology is faulty, it should be corrected.
Photo by Lukas Balandis / 15min / Elininas Jankevičius
The Ministry of Justice gave an example, when as of October 14, 4.7 thousand. The re-registration of real estate property worth 40 thousand euros, from October 1 – already 154 euros, and from October 15 to 5.3 thousand euros. 46 euros and 258 euros for objects for another person.
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