[BUYING AND SELLING REAL ESTATE IN SLOVAKIA]
220
the land and the building built upon it may be owned by different persons. • Where the real property is jointly owned by several owners, the ownership title expressed as a fraction of the total (e.g., 1/2) must be stated; • Specific required contents in respect to a contract for transfer of a flat, such as accession to the Agreement on management of blocks of flats. b. Recommended Content • Specific payment terms reflecting, e.g., loan, involvement of a bank, etc.; Note: To ensure that the purchase price is transferred to the transferor, the parties mostly use a deposit of the purchase price at a notary, attorney-at-law, or bank (escrow account). The parties thus conclude a separate escrow agreement with the bank, notary, or attorney-at-law. According to the escrow agreement the bank/notary/attorney-at-law is obliged to transfer the purchase price upon the fulfilment of the condition precedent(s) for the release of the purchase price detailed in the escrow agreement. These usually include submission of an official extract from the land register evidencing the registration of the transferee in the land register as the owner of the transferred real property (and additional content, e.g., that the real property is free from any mortgage and/or easement). • Handover procedure details; • Liability for defects – from extended liability (compared to statutory standard) to limited liability (excluded defects etc.); • Declarations, if necessary, regarding the required municipal decisions such as, for
instance, permit determining the purpose of the use of the real property; the occupancy • Detailed representations and warranties regarding the current ownership and substantial characteristics of the real property such as: access, connectivity to supplies (gas, electricity, etc.); • Determination of the technical condition of the flat based on expert appraisal with specification of the repairs to be carried out within the next 12 months; Note : Collateral provisions may be agreed in the conveyance agreement dealing with specific requirements of the parties, such as (i) reservation of the ownership right (e.g., until full payment of the purchase price), (ii) repurchase clause, (iii) pre-emption right, (iv) trial purchase. A detailed description of these institutes exceeds the scope of this overview however they could be useful in some cases. We will gladly provide more detailed information upon request. IV. Legal Title & Due Diligence Legal Title The legal systems that have historically governed the ownership of real property in the territory of the Slovak Republic have resulted in a situation characterized by fractioned ownership of lands and legal uncertainty due to the fact that the same lands can sometimes be concurrently recorded in different registers and even in the name of different owners. The records of ownership recorded in the land registry do not represent definitive proof of ownership as these records are considered veracious until proven otherwise. Thus, a review of the land register is of major importance where ownership status is
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook - professional solution for displaying marketing and sales documents online