[BUYING AND SELLING REAL ESTATE IN SLOVAKIA]
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concerned. In particular, in major transactions a detailed review of title records for the past 10 years is highly recommended. Due Diligence In addition, depending on the location and nature of the real property, the seller should conduct a detailed due diligence review focussed on specific issues (as applicable): - unrestricted right to transfer the real property, pre-emption rights, long-term lease of arable lands, existence of mortgage over the real property; - specific historical forms of ownership, e.g., “Urbarium” and ramifications on the transaction or intended use; - (non)existence of unresolved ownership restitution claims raised by entitled persons persecuted by the fascist/communist regimes; - construction planning aspects/restrictions; Note : Construction, alteration as well as a change in use or the demolition of a building in most cases require a territorial and (building) permit issued by the local building authorities. The building project has to comply with the local (or zoning, as the case may be) development plans. Therefore, with regard to the prospective plans of construction, the development and land use should be reviewed very carefully before the closing of the contract. - environmental burdens and issues; - access to utilities networks; - public law limitations (civil defence structures, inundation area, etc.); - sufficient access to the real property (e.g., public road connection).
V. Transfer of Ownership The transfer of ownership to real property in each case requires initiating a procedure before the local District Office (land registry department) on the basis of paper documents and/or documents in electronic form. The proceedings for the entry of the ownership right in the land registry are instituted by means of an application filed by any party; the deadline for a decision on entry is 30 days, in “accelerated” proceedings 15 days. A frequent instrument used in the conveyance of real property in Slovakia is a “geometrical plan” which is a set of descriptive data and geodetic layouts used for outlining the new boundaries of separated lands or a corridor of a possible easement, etc. Note: Since a recent amendment to Slovak law, any errors in writing, calculation or other obvious errors can be rectified only through an amendment to the agreement. The ownership is transferred to the transferee upon a decision of the land registry department (as of the date of application for entry in the case of flats). Recently (2014-2019), sale of agricultural land was subject to several procedural and material restrictions following from Act on the Acquisition of Ownership of Agricultural Land which were aimed at establishing preferential right of local agricultural operators to acquire the offered land (mandatory public notification of the offered agricultural land, preferential right to acquire). The restrictions placed on the prospective seller of agricultural land as well as on the eligible preferential buyers have been eventually considered contrary to constitutional right to own property (Constitutional Court Decision PL. ÚS 20/2014). Hence, since February 2019 the restrictions no longer apply. Nonetheless, a similar, less
ILN Real Estate Group – Buying and Selling Real Estate Series
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