TIME FOR CHANGE

New land registerlaw introduces new fees and tries to prevent fraud

Beginning with 1.1.2014 new land register law will become effective. It was ratified not long ago and can significantly influence the amount of fees that owners of the property will pay.

 

The law introduces several diverse fees that were not effective in the past.  That way the state seeks to collect more than 300 million CZK. It also expects to improve conditions for financing of the property with mortgage, protection against fraudulent deposits into cadaster and smoother progress of real estate transactions.

 

 

New series of fees is being introduced

Basic fee for statement from the land register which used to be 1000 CZK stays the same. Although there is number of new acts and on the ones that used to be for free, new fees are imposed.

 

For example, owners of the property, who financed it through mortgage loan, will pay 1000 CZK for deleting of the property lien of the bank. This act was in past automatical and also free of charge. Also acts concerning rental of land, forest land or tenure will be now subjects to a charge.

 

Now this law also introduces twenty substantive laws instead of original five,  that are subject to registration to land register. All of these acts will be charged and their number is likely to increase. That is because the people will be gradually getting familiar with everything that needs to be registered.

 

 

Land register is required to inform about changes

This means that at number of cases it will not be done only by way of note, but directly by new deposit to the register.  Compared to notes deposits to land register can be better monitored and therefore transactions with property should become more transparent.

 

Another novelty is registration of buildings that are not linked to an estate. These will be deposited into the register by way of note. Also prices of property will be kept on files. Inspection of all documents connected to a deposit of property into the register will be more strict to avoid fraudulent deposits.

 

Owner will be informed about every change in SMS or via data box or e-mail depending on what preferes. This information will be passed at all cases only by electronic way and a land register is required to do so.