Buying and selling real estate and land register

Our extensive and long-standing experience in real estate transactions and close monitoring of legislation, case law and tax policy has shaped our professionalism to the highest degree. Our clients trust us to ensure that their real estate is properly registered in the land cadastre and that their ownership and other rights are correctly registered in the land register.

Buying and selling real estate 

We advise and represent our clients at all stages of the transaction for the purchase or sale of real estate:

  • in negotiations,
  • in obtaining the permits or consents required by law for the transaction,
  • in the drafting of the contract,
  • in entering into the contract of sale,
  • in the preparation of the tax return and in any tax proceedings,
  • in the process of registration of ownership and other rights or legal facts in the land register.

We advise our clients on obtaining financing or a mortgage loan and, in cooperation with the bank of their choice, we ensure that the purchase of the real estate proceeds smoothly and that the mortgages or other securities on the real estate are discharged on time. We also work with a permanent network of surveyors to ensure that the real estate is properly registered in the land cadastre and buildings cadastre.

We work with clients on all types of real estate transactions involving apartments: single or multiple dwellings; houses: detached, semi-detached or terraced; commercial premises: offices, shops, restaurants, warehouses, workshops and other business premises; industrial premises: factories, plants, production halls and other industrial premises; holiday properties: cottages, houses or apartments; building land, residential complexes: entire apartment blocks, neighbourhoods or larger residential units; agricultural land, together with occupied or unoccupied buildings; forest land; agricultural community land.

Valuable practical experience shows that the cornerstone of any real estate transaction is a thorough analysis of the status of the real estate, which not only provides the client with an insight into the actual status of the real estate, but also enables the client to predict the next steps in the sales process and assess the financial implications of the transaction. The due diligence of the real estate determines and identifies:

  • the land register status of the real estate,
  • any limitations of the ownership right, such as registered easements, mortgages and other encumbrances,
  • any risks, encumbrances or deficiencies which may affect the ownership right and value of the real estate,
  • the existence and adequacy of the building permit and the operating permit,
  • any existing and potential disputes relating to real estate which may arise from the status of the real estate,
  • any tax liabilities arising from the transfer of the ownership right,
  • any contracts or agreements relating to the real estate which may affect the transfer of the ownership right or its exploitation,
  • environmental and other permits and consents required for a successful sale and transfer of the ownership right,
  • limitations of public law nature that limit the use of the real estate (e.g. for the protection of cultural heritage, nature conservation and the environment).

Power of attorney for the sale 

We enable our clients to complete the transaction by means of a special power of attorney for the sale of real estate, which must be drafted in detail and contain the elements required by law. In this way, we enable our clients to complete the real estate transaction in a way that minimises their involvement in the process. Clients use this option to buy or sell real estate usually due to:

  • living abroad,
  • illness or other restraint,
  • the complexity of the transaction.

We usually carry out the sale or purchase of real estate on the basis of a special power of attorney when the real estate is co-owned, as this guarantees the successful completion of the transaction within the agreed timeframe.

The client can also grant a special power of attorney for the sale of real estate in the event of death, which means that we protect the client’s interest in the sale of the real estate to a specific person even if the party selling the real estate dies during the sale process.

Agricultural land and forests 

We have extensive experience in the sale and purchase of agricultural land and forests at all stages of the process before administrative authorities and courts, including:

  • Offer for sale: Before the sale is launched, it is essential to define the strategy for the sale and set clear terms and conditions for the sale to minimise speculative acceptance of offers and potential disputes.
  • Accepting the offer: The buyer who wishes to accept the offer must make a timely acceptance of the offer and exercise any rights of pre-emption provided for by law. The key at this stage is to accept the offer in a timely manner, to be aware of the legislation and case law on rights of pre-emption and to provide the relevant evidence to ensure that the right of pre-emption is properly exercised.
  • Approval of the transaction: This is the final stage and it is essential that the application for approval of the transaction is made in good time. In practice, this stage can also be the start of a dispute if there are several interested parties. In our law firm, we first try to resolve any complications through negotiations between the parties and reach an amicable settlement.
  • Appeal and judicial proceedings: If an agreement cannot be reached, we represent our clients in further appeal proceedings before the relevant ministry and in administrative or civil disputes before the courts to protect their interests.
  • Tax assessment: After the final decision approving the transaction, we file our clients’ tax returns and represent them in tax proceedings. When assessing tax liabilities, we pay particular attention to capital gains on the sale of real estate (“capital gains”) and organise the necessary property valuations that prove necessary for the proper and correct assessment of taxes.
  • Land registration: We prepare and organise the necessary activities for our clients to register their property rights in the land register.

Land register and cadastre 

The complexity of the land register proceedings requires a thorough knowledge of the relevant regulations, which we use to guide our clients through the potential risks of the real estate transfer process and to represent them in any disputes arising from the land register status.

We are aware that the consistency and accuracy of cadastral data and land register rights relating to real estate is of fundamental importance to our clients and we pay particular attention to the de facto and de iure regulation of their real estate. We advise and represent our clients in land register proceedings relating to the registration of the:

  • ownership right,
  • lien,
  • easement,
  • right of encumbrance,
  • right of prohibition of the disposal of ownership or encumbrance, and
  • other rights and facts to be registered in the land register.

Agreement on the reconciliation of entries in the land register with facts

We also pay particular attention to clients who wish to reconcile the entries in the land register with facts. These are differences that may arise for various reasons, such as changes of ownership that have not been properly registered in the land register, land allotments, mergers of parcels, irregularities in the land register, etc. The purpose of an agreement on reconciliation of entries in the land register with facts is to resolve differences and ensure consistency between the entries in the land register and the true, fair and actual status of the real estate. Such an agreement establishes the actual situation on the ground and then makes the appropriate corrections or amendments to the cadastre and land register to ensure that the ownership and other rights over the real estate are accurately and correctly registered.

Adequate and comprehensive knowledge of the legal status of the real estate, proper negotiation, a well-drafted contract and the correct completion of all accompanying procedures and cadastral and land registrations are key to the successful completion of the sale or purchase transaction and to the protection of the client’s rights and interests. Our expertise ensures that the entire transaction leaves no room for ambiguity or potential risk.

Krištof & Brečko Advokatura