This article deals with the law of the Slovak Republic and its application by Slovak courts and authorities.
Buying a property is one of the biggest investments in life, yet the price and condition of a house or land are not everything. Properties often carry so-called easements and encumbrances, which pass on to you as the new owner together with the land or building. These may include, for example, a right of way across the land, a lifelong right of residence for another person, or a bank's lien. Such facts can significantly limit your use of the property as well as its future value.
The first and most important step is to check the current title deed. It is precisely in its sections that you will find registered encumbrances, liens, easements, and various notes about ongoing proceedings. We recommend not relying solely on the extract shown to you by the seller, but obtaining a fresh extract directly from the land registry just before signing the contract. The situation may have changed in the meantime.
Pay particular attention to easements, which may not always be obvious at first glance. Some rights, such as a right of way or the routing of utility lines across the land, may also arise from circumstances outside the title deed. It is therefore advisable to inspect the property physically, to notice access roads, poles, pipes, or neighbours' use, and possibly to ask directly at the municipality or with the neighbours.
Liens and enforcement notes form a special category. If a lien in favour of a bank is registered on the property or if enforcement proceedings are underway, buying without proper treatment in the contract may mean that you take over someone else's debt or that the transfer does not happen at all. In such cases it is essential to set up precisely the procedure for paying the purchase price and removing the encumbrances, ideally through a notarial or attorney escrow.
Discovered encumbrances do not automatically mean you should abandon the purchase. Many of them can be resolved, for example by an agreement on removal, the consent of the entitled person, or an adjustment of the purchase price. The key is to know about them before you commit and to have it clearly stipulated in the contract who will take care of the removal and by when. This is where thorough legal review pays off the most.
If you are considering buying a property and want to be sure that no hidden encumbrances surprise you, we are happy to help. Our office will review the title deed, point out the risks, and propose a safe wording of the contract — for a pre-agreed fixed price and with an answer to your question within 24 hours. Do not hesitate to contact us before signing.