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Tip: The Real Estate Cadastre is a public registry that contains a wide variety of information about the properties listed in it. The creation, modification, or termination of rights to these properties becomes effective only after the relevant cadastral office has entered the information into the cadastre. We cover this topic in a separate article.
During a mass transfer of real estate (specifically, the transfer of apartments into private ownership), we encountered an amusing situation. One client accidentally printed out and submitted to the Land Registry a draft contract that included all comments and revisions—and even some errors. Otherwise, the contract was perfect in terms of content. Unfortunately, however, the document listed only a contact address, not a permanent residence address, and also included the client’s name with a typo. The correct information was provided only in the comments. Fortunately, in this case, it was possible to resolve everything by making corrections directly with the officials. Nevertheless, it’s best to avoid such mistakes, as they can cause problems elsewhere. It’s always better to prevent issues than to deal with the complicated consequences later.
Also, be careful with all sorts of templates that are freely available for download on the internet. We handled a case involving a retiree from Prague, Mr. Karel. He downloaded an apartment transfer agreement and thought he could fill it out himself, submit it to the land registry, and easily transfer the apartment to his son. However, the Land Registry returned the contract to him. The transfer was halted. Moreover, it wasn’t at all clear to Mr. Karel why this had happened. It later turned out that in the “size” field of the template document, he had entered the apartment’s floor area. However, he was supposed to have entered the size of his share in the common areas of the building. That was the crux of the matter. At the time, this mistake cost Mr. Karel the entire administrative fee for the application for registration. Today, the fee for accepting a standard application to initiate registration proceedings is 2,000 CZK. The loss could have been much higher if the transfer had ultimately failed to go through due to a minor error in the contract.
An application for registration can fail even if it is formally flawless. Therefore, before the transfer, verify that the seller is not restricted in disposing of the property—for example, due to enforcement proceedings. This is very important because enforcement proceedings are subject to the principle prohibiting the disposal of assets. As a result, the transfer might not take place at all, and the entire situation could come to a standstill. Ideally, the seller should assure the buyer directly in the purchase agreement that the seller is not subject to any enforcement proceedings and, to the best of the seller’s knowledge, no such proceedings are pending.
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Tip: Selling a single-family home is a process that involves a whole series of legal steps. Even a minor mistake can cost you dearly—at best, it will cost you a lot of time; at worst, it could cost you money. How can you sell your property while avoiding unpleasant consequences?
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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?
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The same applies if the seller is in insolvency proceedings. This can be easily verified in the insolvency registry on the Ministry of Justice’s website.
Problems when purchasing real estate often arise because the seller or buyer relies entirely on a real estate agency or broker, trusts them “blindly,” and fails to verify the information they receive. In practice, this situation leads to an unnecessarily high commission paid by the buyer, the risk that the seller will not be paid for the property, and a number of other problems that can be relatively easily prevented. The best course of action is to consult an attorney who understands these issues.
Summary
An application for registration in the real estate cadastre must correspond to the attached contract, the information in the cadastre, and legal requirements. Errors in identifying the parties or the property, a defective contract, missing documents, or restrictions on the owner’s ability to dispose of the property can complicate the entire process and sometimes even result in the registration being denied. Therefore, it is worth reviewing not only the form itself but the entire transfer before submitting it to the land registry.
We prepared this article for the Lidové noviny series “Law & Housing.” Be sure to check out other articles in the series:
- What to Watch Out for When Buying Real Estate
- How to Get a Mortgage
- What to Check Before Buying Real Estate
- Who Pays Real Estate Transfer Tax and How?
- What a real estate purchase agreement should include
- Common Mistakes When Drafting an Application for Land Registry Registration
- Buying a Property from a Developer
- Escrow of the Purchase Price When Buying Real Estate
- The difference between a cooperative apartment and a privately owned apartment
- What Is an Annuity?
- How to Properly Donate Real Estate
- What is the purpose of an easement?
- Drafting a Will and Settling an Estate
- What Is a Collation?
- What Should Be Included in a Lease Agreement
- When Can Rent Be Increased
- Termination of a lease
- Agreement to Terminate a Lease
- How to Draft a Contract for Work with a Tradesperson
- Hidden Defects and Withdrawal from a Contract for Work
- When Do You Need a Building Permit for Property Renovation?
- House Rules
- What Does a Position on an Apartment Building Committee Entail?
- Why You Shouldn’t Underestimate the Bylaws of an Apartment Building
- Common Areas in an Apartment Building
- What Is Involved in Renovating an Apartment Building?
- Can a homeowners’ association or housing cooperative go into debt?
- How to Approach the Renovation of a House or Cottage
- What to Watch Out for When Dealing with a Construction “Company”?
- Building a house on a “greenfield site”
- How to Remove Land from the Agricultural Land Fund
Tip for article
Tip: You have a purchase agreement in hand, but you’re not yet the owner. You now need to file an application to register the property in the land registry. Standard registrations of ownership rights or easements may not seem particularly complicated at first glance, but there are a few basic rules you should know to ensure everything goes smoothly. We’ve broken it down in a separate article.
Frequently Asked Questions
Can an error in an application for registration be corrected after it has been filed?
It depends on the type of error. Some deficiencies can be corrected during the proceedings, or the missing documentation can be provided; others may result in the registration being denied. Therefore, it is best to review both the application and the registration document before filing them.
Can only the new owner file an application for registration?
No. The parties to a contribution proceeding are persons whose rights are created, modified, or expanded as a result of the contribution, as well as persons whose rights are extinguished, modified, or restricted.
Does the application for registration have to be signed by all parties to the transfer?
The Cadastral Act requires the applicant’s signature. It is therefore important to distinguish between the parties to the registration proceedings and the person who actually files the application.
What happens to the administrative fee if the Land Registry does not approve the registration?
Failure in the application process alone does not automatically mean that the administrative fee paid will be refunded. Resubmitting the application may therefore result in additional costs.
Is it possible to file an application for registration without a lawyer?
Yes. Representation by an attorney is not a general requirement for filing a petition. However, in the case of more complex transfers, having a lawyer review the contract and the petition can prevent errors that would complicate the registration process.