Hidden charges and overriding interests

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1. Are there any such hidden charges in your system? If so, please list them, and explain how a buyer can discover them. Explain if there is any simple way that the property can be freed from them.

2. Do any of these, or any other similar matters, have priority over a mortgage, where the lender was acting in good faith and was unaware of them? Explain if there is any simple way that the property can be freed from them.

According to the Land Register Law only property rights, not obligation rights are corroborated in Land Register.

Also, in accordance with Civil Law, any alienation of immovable property, and in general also any change in the owners thereof, must be registered in the Land Register.

Similarly, each immovable property, which is not an appurtenance to another such property, must be registered in the name of the new owner as a new mortgageable parcel. Only such persons shall be recognised to be the owners of immovable property, as are registered in the Land Register as such owners.

Until registration in the Land Register, acquirers of immovable property shall not have any rights against third parties, they may not use any of the priority rights associated with ownership, and they must recognise as valid any acts pertaining to such immovable property by the person who is indicated, pursuant to the Land Register, as the owner of such property. However, they have the right, not only to request compensation for all acts done in bad faith by the earlier owner pertaining to the immovable property, but also to request that the latter take all the appropriate steps to register the passing of the immovable property in the Land Register.

In practice this means, that any hidden charges or overriding interests are hard to come by, because what is corroborated in Land Register always has priority over other rights to an immovable property.

However there is a problem regarding lease/rental agreements which are hardly detectable and remain in force even if the property rights are transferred.

Also one must always account for the possibility that the immovable property can be transferred if a public need arises. This can happen via an agreement on a voluntary alienation or with a special law.

If the property is owned jointly, then in a case of a sale, it has to be primarily offered to the co-owners. If this is not done, the co-owners then have the right to challenge the deal in court.

Judge of a Land Register department examines corroboration requests in the sequence in which tehy have been entered into corroboration journal, taking into account the priority rights to fulfilments of the applications. In practice it means, that for example, if in one day there are firstly a request for a mortgage submitted and only then a request for the bringing of attachment proceedings against an immovable property, then the latter will be examined first.