Theapplication for registration must be accompanied by the so-called legal title – most often the purchase contract or a certified copy of the contract with officially certified signatures. In some specific cases, other documents, if their necessity arises from the law in the specific case.
Documents drawn up in a foreign language (with the exception of Slovak) must be submitted in the original text and at the same time in an officially certified translation into Czech.
The most frequent problems are errors in either the purchase contract or the application for registration. The transcription can cost a lot of money. Sometimes even a small mistake in the address or designation of the property can lead to failure in the entire transfer. Often the error does not even occur with the parties to the transfer. For example, we have dealt with a case where an official at the Czech embassy in Switzerland missed the stamp on the transfer label when verifying the signature and the land registry refused to accept the verification. It took quite a lot of effort to correct the mistake.
Tip: The Land Registry is a public register that contains all kinds of information about the properties registered in it. The creation, change or termination of rights to these properties is then effective only after it is registered in the cadastral register by the competent cadastral authority. This topic is dealt with in a separate article.
During one mass transfer of real estate (it was a transfer of flats into personal ownership) we encountered a funny situation. One client had accidentally printed and submitted a draft contract to the Land Registry with all the comments and revisions and even some errors. The contents were otherwise a perfect contract. Unfortunately, however, only a contact address was included in the document, not a permanent address, and the client’s name was changed. The correct details were given only in the comments. Fortunately, in this case everything could be resolved by corrections directly with the officials. Nevertheless, it is advisable to avoid similar mistakes, as one may run into them elsewhere. It is better to prevent everything than to have to deal with the consequences.
Also beware of all kinds of templates that are freely downloadable on the Internet. We dealt with the case of a pensioner from Prague, Mr Karl. He had downloaded a contract for the transfer of his flat and thought that he would fill it in himself, submit it to the Land Registry and transfer the flat to his son. But the Land Registry returned the contract to him. The transfer was stopped. Moreover, it was not at all clear to Mr Karl why this had happened. It was then discovered that he had filled in the “size” box in the model document with the size of the flat. However, the size of the share in the common parts of the house should have been filled in. This was where the dog was buried. This cost Mr. Karl an unnecessary CZK 1,000 in fees to the Land Registry. The damage could have been much higher if the transfer had not taken place at all due to a minor mistake in the contract.
Before buying a property, check whether the seller is in foreclosure. This is very important, because the principle of prohibition of disposal of property is connected with the foreclosure proceedings. The transfer might not take place at all and the whole situation could get “stuck”. The seller should preferably assure the buyer directly in the contract of sale that he is not in any execution proceedings, nor, as far as he knows, is there any pending.
Tip: Selling a house is a process that involves a number of legal actions. Even a small mistake can cost you a lot – at best it will cost you a lot of time, at worst it will cost you money. How to sell a property to avoid unpleasant consequences?
Proposal for entry into the Land Registry
Measure twice, cut once. That goes for official filings as well. Enrolment in the Land Registry is a formality, but a very important formality that is not to be underestimated. Do you need to register an easement in the Land Registry? Or a lien so you don’t lose the money you borrowed?
The same applies if the seller is in insolvency proceedings. This can be easily verified in the insolvency register on the website of the Ministry of Justice.
The fact that sellers or buyers fully rely on real estate agents or brokers, “blindly” trusting them and not verifying the information they receive from them, often contributes to problems when buying a property. In practice, this situation leads to an unnecessarily high commission paid by the buyer, the risk of the seller not getting paid for the property and a number of other problems that can be relatively easily avoided. Ideally, you should contact a lawyer who understands the issues involved.
This article was prepared for the Lidové noviny series “Law & Housing”. See also other articles from the series:
- What to look out for when buying a property
- How to get a mortgage
- What to check before buying a property
- Who pays the property transfer tax and how?
- What should be included in the property purchase contract
- The most common mistakes when drafting a proposal to the Land Registry
- Buying a property from a developer
- Keeping the purchase price when buying a property
- The difference between a condominium and a freehold
- What is an annuity?
- How to properly gift a property
- What is the purpose of an easement or servitude?
- Making a will and settling an estate
- What is a collation
- What shouldn’t be missing in a lease agreement
- When rent increases can be made
- Termination of the lease
- Agreement to end the tenancy
- How to draw up a work contract with a tradesman
- Hidden defects and cancellation of a works contract
- When do you need planning permission to renovate a property?
- Home Rules
- What does serving on a condominium board entail?
- Why not underestimate the bylaws in a condominium
- Common areas in a block of flats
- What is involved in refurbishing a block of flats
- Can a condominium or housing association go into debt?
- How to renovate a house or cottage
- What to watch out for when dealing with a construction “company”?
- Building a house on a “green field”
- How to remove land from the agricultural fund
Tip: You have a purchase contract in your hand, but you are still not the owner. You are about to file a petition for registration of the property in the Land Registry. The usual deeds of title or easement are seemingly not very tricky, but there are a few basic rules you should know to make sure everything goes smoothly. We’ve broken it down in a separate article.