New possibilities for changes to the lien in the Cadaster of Real Estate

Real estate

By: Tomáš Kreisl

Until now, the Czech State Administration of Land Surveying and Cadastre has only allowed the entry of a change in the lien, if the person of the pledgee has changed. No other changes to existing lien could be recorded. The current practice was to enter into an agreement to cancel the original pledge agreement and replace the original one with a completely new pledge agreement.

The change in practice was brought about by the judgment of the Prague Municipal Court, Case No. 92 C 4/2022. The case concerned an increase in secured claims, where the plaintiffs sought to register a change in the lien on real estate in the cadastre of real estate on the basis of an amendment to the pledge agreement. The court agreed with the plaintiffs. Thanks to this court decision, the State Administration of Land Surveying and Cadastre issued an opinion on the change of lien and other rights.

The Office will now allow the entry of changes to already registered rights in cases of principal increases, extensions of the period for the creation of claims, and related adjustments to prohibitions on alienation or encumbrance. New types of legal relationship were also introduced into the cadastre: Change of contractual lien, Change of prohibition of alienation and encumbrance, Change of prohibition of alienation, and Change of prohibition of encumbrance.