Ownership and rights connected with real property are registered in land registries ("Kataster Nehnutel Urad") which are kept by the designated land registry office ("Katastralny Urad").Abstracts and other information relating to ownership are provided by the registry office upon request.
Association of Real Estate Offices of Slovakia
address: Nevadzova 5
821 01 Bratislova
Slovak Republic
phone/fax: 421-7-2907223
Union of Real Estate Offices of the Slovak Republic
address: Hlavna 33
080 01 Presov
Slovak republic
phone/fax: 421-91-725169
Real property owned by one spouse before marriage remains their individual property. Property obtained during the marriage is classified as joint property. Property which is not acquired by any heir escheats to the estate.
A company with foreign participation (either joint venture or a wholly owned subsidiary)which is incorporated and registered in the Slovak Republic may acquire real estate.According to Decree 465/1991 of the Treasury Department, the price of property purchasedby a foreign company must be determined by using professional appraisal techniques consistent with western standards. The price is only valid if approved by the Ministry of Finance. The approved price is the basis for determining the tax levied upon the transfer of real estate.
A foreign individual may acquire real property located in the territory of the Slovak Republic under only very limited circumstances:
(1) by inheritance,
(2) for diplomatic representation of a foreign state,
(3) if real property is exchanged for other real property already owned by the foreigner,
(4) if the foreigner has a preemption right because of coownership of the real estate,
(5) if stipulated by special laws such as restitution or privatization.
Real estate can be expropriated for purposes stipulated by law, such as the public interest or the building of infrastructure, provided there is no alternative. The expropriation procedure is regulated by Act No. 50/1976 and is carried out by the state construction authority. The act dictates that foreign parties shall receive foreign currency without undue delay in exchange for their property.
Severalty: Real property in Slovak Republic may be owned in severalty or concurrence.
Concurrence - tenancy in common:
Concurrence - joint tenancy (survivorship)(entirety)(community property):
Concurrence - partnerships, J.V., corps., trusts:
Concurrent forms of ownership include General Partnerships (Verejna Obchodni Spolecnost); Limited Partnerships (Kommanditni Spolecnost); Limited Liability Companies (Spolecnost s Rucenim Omezenym) and Joint Stock Companies (Akcioua Spolecnost).
Title & Contracts in Slovakia
"According to the Slovak civil code, the estate of any deceased person, including their real property, passes to their heirs upon death. Real property can be conveyed by a will or by intestate succession. Ownership of real property is transferred upon the recordation of a duly executed contract in the appropriate real estate register." Martindale-Hubbel (1997)
According to Act No. 162/1996 rights connected with real estate are acquired at time of relevant entry of such right in the land registry. If the right connected with relevant real estate is acquired on the basis of a written agreement or the foundation deed of a company, the land registry will review the validity of such document, particularly the right of the paricipants to dispose of the real property.
The civil code sets forth the general conditions for contractual relations, ownership rights, and the performance of legal relationships. If the performance of an obligation becomes impossible, the liable party’s duty to render performance shall be discharged, however, performance of discharged, however, performance of obligation shall not be considered impossible if it can be performed under more difficult conditions, with greater expenditure, or after an agreed upon time limit." Martindale-Hubbel (1997) According to ZMPSP ( Act on International Private and Procedural Law) foreign parties may choose any law in property and commercial matters as governing law of the agreement provided such agreement comprises a "foreign element". A foreign entity which is party to the agreement qualifies as a "foreign element". Therefore the choice of foreign law to govern a real estate contract would likely be recognized as valid according to Slovak law. Courts generally uphold parties choice of law and decide the case in compliance with the relevant rules of governing law. However, the choice of foreign law can make the resolution of some disputes unnecessarily difficult and time consuming.
Property Taxes:
A tax on real estate is computed annually and is payable by owners or occupiers of both buildings and land. Municipalities are entitled to change the tax rate within limits stipulated by law. A tax on the transfer of ownership is governed by Act No. 318/1992. This tax is levied on any transfer of real estate for consideration. The tax rate depends on the value of the transferred assets and also on the relationship of the transferor and the transferee For example, a lower rate applies to transfers between family members." Martindale-Hubbel (1997)
Land Use & Control
Act No. 50/1976 Coll., outlines the basic principles and obligations concerning construction of buildings and connected activities. For purposes of further development of a particular region, territorial plans are created by local state authorities. Further development of a particular territory must comply with these plans. Furthermore for any construction activity (excluding small buildings) special permission is necessary, which is issued by the local state authority following application by the proposed builder. Certain items in Section 8 have been drawn from Martindale Hubbell International Law Digest, Reed Elsevier, Inc.
Real property can be mortgaged as security for a debt in the Slovak Republic. Registration with a regionally competent land registry office is necessary for a mortgage to be effective. The land registry approves registration upon written application with all necessary enclosures including proof of title of mortgagor. The approval process is usually completed within thirty days. The instrument creating the mortgage must be specific concerning the subject of the mortgage and the receivable to be secured. If two or more mortgages must be ranked, the principle of "first in time, first in right" applies with priority given to the oldest registered mortgage, unless a specific law, such as the Banking Act, states otherwise. For example, The Banking Act states that mortgages securing mortgage loans rank higher than any other mortgage or lien.
Administaror