Buying a flat subject to enforcement proceedings
Enforcement proceedings against a property for sale pose a genuine risk. This can arise if the previous owner had unpaid debts that were not settled before the sale. The owner may be forced to sell due to financial difficulties. Therefore, do not take the risk of enforcement proceedings lightly and thoroughly check both the owner and the property itself. This will help you avoid unexpected surprises and legal issues that can be financially costly.
Thoroughly check ownership records
Check the ownership records in the Land Registry (katastr nemovitostí), but do not stop there. Bear in mind that the information in the register may not be up to date, so it is also necessary to check with the Chamber of Enforcement Officers (Exekutorská komora), enforcement offices and district courts, which hold current information on enforcement proceedings.
The seller is unlikely to be forthcoming about any outstanding liabilities, and may not even be aware that the authorities are initiating enforcement proceedings against them. Creditors, enforcement officers and the court may still be in the preparation stage, which usually lasts 45 days before the debtor receives notification of the enforcement proceedings. The entry of the enforcement proceedings in the Land Registry (katastr nemovitostí) will only take place later.
Use the services of an expert
Do not hesitate to seek help and advice from an expert, such as a lawyer specialising in property and enforcement proceedings. These professionals have the knowledge and experience needed to thoroughly examine the enforcement situation and protect your interests.
If you are selling, be honest
If you are selling and are aware that enforcement proceedings may affect your property, be considerate and disclose this fact to potential buyers. Being honest in this respect can save both you and the buyers time and inconvenience. It does not necessarily mean that the buyer will lose interest; on the contrary, you may be able to find the most suitable solution together.
Do not enter into the contract hastily
Do not rush to sign the purchase agreement. Before deciding to proceed with the transaction, carefully consider all risks and check all relevant information about the property. If you have any doubts, it is better to take time to consider matters and consult experts.
Remember that prevention is always better than cure. Investing in a thorough review and professional advice can save you considerable worry and financial losses in the future.