July 07, 2024

How to check ownership of a property before buying

Introduction

In Croatia, ownership of real estate is acquired by registration in the land register. The land register is a public register in which information on the legal status of real estate is recorded, including property rights and other rights in rem. The acquisition of ownership and other real rights to real estate is regulated by the Ownership and Other Property Rights Act and the Land Registry Act. Registration in the land register is crucial because only the registered right has legal effect vis-à-vis third parties.

Verification of ownership

Verification of ownership of real estate is carried out by inspecting the land register. You can do this in person at the competent land registry court or through a lawyer who will check all the relevant information for you. It is advisable to hire a lawyer because a professional can thoroughly review all aspects of the ownership status and potential encumbrances on the property.

Composition of the land register

The land register consists of three main parts: the title deed (title deed), the possession deed (census sheet) and the consignment note (encumbrance).

  • Title deed: Contains information about the owner of the property, the basis for acquiring ownership and any notes related to ownership.
  • Possession (Census Sheet): This is where information about the property is listed, including its physical characteristics, area, and purpose. It also lists the rights in rem that exist in favour of that property.
  • Bill of lading (bill of lading): This sheet contains information about all the encumbrances that encumber the property, such as mortgages, foreclosure notes, records of dispute, easements, and other legal actions that affect the property.

What to look for when inspecting the land register

When inspecting the land register, you should pay attention to the following:

  • Mortgages: Check if there is a registered mortgage on the property, which means that the property is insurance for some debt.
  • Enforcement Notes: Enforcement notes indicate that enforcement proceedings have been initiated against the owner of the property.
  • Dispute Notes: They indicate that there is a legal dispute related to the property, which can make it difficult or impossible to acquire ownership.
  • Active Seals: Active seals indicate that some process is underway that may affect the rights registered in the land register. This can be a change of ownership, a bug fix, or some other process.

What to do when the situation in the land register is not in line with the actual situation

If it is found that the situation in the land register is not in line with the actual situation, for example when the seller is not registered as the owner, it is important to consult a lawyer. A lawyer will check the legal basis for the acquisition of ownership and can assist in the process of correcting the data in the land register. Also, he can advise on further steps to ensure the legal acquisition of ownership.

Conclusion

Checking the ownership of the property before buying is a crucial step that can prevent future legal problems. It is always advisable to hire a lawyer to carry out a detailed check of the land registry status of the property. This way, you can be sure that you are acquiring a property without hidden encumbrances and legal obstacles.

If you need a real estate lawyer, please contact us at:

info@odvjetnik-bistrovic.hr

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