[BUYING AND SELLING REAL ESTATE IN SLOVAKIA]
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intrusive regulation is being prepared and could enter into force in the future. VI. Forms of Ownership In general, all individuals and legal entities can invest into and own real property assets. It is irrelevant if the owners and purchasers are resident or non-resident or which country they come from. It is only crucial that they have legal capacity. The most frequent forms of ownership are: 1. Sole ownership:
lands are, to a large extent, owned by the Catholic church. Finally, owing to the historical developments, especially agricultural/forest lands are quite often co-owned by so- called “unidentified owner s”, i.e., persons who are either not sufficiently identified, deceased, or not known at all. The acquisition of such lands may require tracking down the current successors in ownership (heirs) and/or liaising with the competent authorities (e.g., Slovak Land Fund) that represent such unidentified owners. VII. Agents The buyer or seller can both use the services of a real property agent. Currently there are several renowned firms on the market providing services for the intermediation of retail premises and industrial areas. The agent commission is determined by agreement of the parties without specific limitations. Caution is recommended when using local agents as the legal-technical quality of the documents used by them is generally not at a level ensuring clear distribution of rights and obligations among the seller, buyer, and the agent in case an issue should arise. VIII. Donations Real property can be donated by means of a donation agreement. Please note that given the specific nature of the donation, the return of a gift can be demanded only if the beneficiary commits a gross violation of good morals against the donor or the members of their family. IX. Financing The usual way of financing real property is a bank loan/mortgage for at least a part of the purchase price. A bank thus regularly insists on collateral.
The owner is the only person with ownership right to the real property. More than one person owns an undivided share in the real property. Each co-owner is entitled to dispose with its share. In case of transfer, the other co-owners have pre-emptive right (save for transfers to close persons such as a child, etc.) Each of the spouses is entitled to a share of the joint property, but is not entitled to dispose with it independently, i.e., without the consent of the other joint owner (spouse).
2. Co-ownership:
3. Joint ownership
of spouses:
Residential property is typically owned by individuals (90% of flats in Slovakia are in the ownership of individuals/inhabitants). Owners of commercial property are most frequently legal entities under either private or public law. The most commonly used legal forms are joint- stock companies (a.s.) and limited liability companies (s.r.o.). Also, forests and/or arable
ILN Real Estate Group – Buying and Selling Real Estate Series
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