Registry and Ownership — Hidden Risks

The acquisition of real estate is one of the most important financial decisions. An apartment, a land plot, a commercial space — each such transaction is associated with a significant investment. Therefore, an acceptable price alone or the seller’s verbal promises are not sufficient. Prior to acquiring property, a thorough verification of the legal status of the registry and ownership is essential, as this is often where serious risks are concealed.

Registration in the public registry is important; however, reviewing the extract alone is never sufficient. In practice, there are frequent cases where property that appears “in order” at first glance is accompanied by legal issues that may later result in disputes, invalidation of the transaction, financial loss, or restrictions on the use of ownership.

What does verification of a registry record actually mean?

Reviewing an extract from the public registry is only the first step. The extract indicates the owner, mortgage, seizure, right of use, and other registered encumbrances; however, it does not provide a complete picture.

In legal practice, verification of the registry includes:

• Analysis of the history of the origin of ownership;
• Assessment of the legality of prior transactions;
• Verification of co-ownership matters;
• Examination of the existence of court disputes;
• Identification of registered and unregistered rights;
• Comparison of technical and cadastral data with the actual condition.

If these stages are omitted, the buyer often places their capital at risk.

The owner is formally one, but in reality other persons also assert claims

In some cases, the property is sold by a person who is registered as the owner in the registry, but their right may have a disputable basis.

For example:

• The issue of inheritance has not been fully resolved;
• A prior sale agreement may be contested;
• The property was transferred through deception or coercion;
• The representative did not have sufficient authority.

In such cases, the buyer may act in good faith, yet a dispute may still arise. Therefore, it is necessary to verify not only the current owner but also the entire chain of ownership.

Mortgage, seizure, and other restrictions

Buyers often check only the name of the owner and do not pay attention to other records. However, the registry may include:

• A bank mortgage;
• A tax seizure;
• A prohibition imposed by a court;
• A usufruct;
• A long-term lease agreement.

This means that after acquiring the property, the buyer may not be able to fully use their ownership or may be obliged to respect the rights of third parties.

The actual area does not correspond to the registry

It is quite common for the actual size of an apartment or land plot to differ from the registered data. For example:

• The registry indicates 80 sq.m., whereas in fact the area is 72 sq.m.;
• The land boundaries extend onto a neighboring plot;
• An extension is not reflected in the registry;
• A floor or auxiliary space is unauthorized.

Co-ownership disputes

If the property belongs to several persons, the sale by one co-owner is not always straightforward. It is possible that:

• The consent of another co-owner is required;
• A dispute over the division of the property is ongoing;
• A pre-emptive right of purchase exists;
• One co-owner’s share is linked to the interests of a minor.

Under such conditions, an imprudent transaction often turns into a prolonged court dispute.

Risks related to newly constructed properties are even more diverse. Buyers often rely solely on the developer’s promises, without verifying construction permits, commissioning status, compliance with the project, or the ownership status of the land. As a result, it may turn out that the acquired apartment formally exists, but the building is not fully legally regulated. In such cases, problems become particularly acute during registration, mortgage lending, or subsequent resale.

Another common mistake is paying an advance without prior verification. People lose time, become emotionally attached to the desired apartment, and are ready to pay quickly so that “someone else does not take it first.” It is at this stage that the most costly mistakes are made. Before paying an advance, it is essential to assess the legal status of the property, analyze the terms of the contract, and properly structure the payment mechanism.

In the real estate market, the most prudent step is not a quick decision, but an informed decision. Preliminary legal verification of the property costs significantly less than a subsequent dispute, an invalidated transaction, or a lost investment. Professional analysis includes the assessment of registry records, verification of the owner’s authority, examination of potential disputes, legally secure contractual terms, and a safe payment structure.

If you are facing an important decision related to real estate, the KH&PARTNERS team will assist you in conducting the process correctly and securely from a legal perspective. We ensure a detailed examination of the property, identification of potential risks, full legal structuring of documents, and protection of your interests at every stage of the transaction.

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