The New Civil Code and the Acquisition of Ownership Rights to Real Property
Effective July 1, 2027, the new Civil Code will strengthen the protection of purchasers who rely on entries in the real estate cadastre. However, this protection will not be automatic, as good faith will be a key factor in determining protection, and under the new Civil Code, good faith requires due diligence. Due diligence can be understood as the level of caution that a reasonable and prudent buyer would exercise when purchasing real estate. If you are unaware of a material fact simply because you failed to exercise this due diligence, the law will treat you as if you were required to know about it.
What's changing?
The new legislation establishes a presumption of the accuracy of the registration—that is, the assumption that the information in the real estate cadastre is consistent with the actual legal status. If the status recorded in the land registry does not correspond to the actual status, this works in favor of the person who, for consideration and in good faith, acquired a real right from a person who, according to the recorded status, was authorized to make such a transfer, even if that person was not, in fact, the owner of the real property. In other words, if you purchase real property from a person who is registered in the land registry as the owner and you acted with due diligence, the law will protect you even if it later turns out that the seller was not, in fact, the owner.
When won't this protection help you?
Protection of the purchaser shall not apply, and the status recorded in the real estate cadastre shall not work in the purchaser’s favor, for example, if:
- acquired the real property without consideration—for example, as a gift,
- failed to exercise the due diligence normally required in such cases (e.g., he did not verify the title deed),
- learned of the doubts before filing the application for registration, because good faith is assessed as of that very moment,
- if the original owner or another authorized person asserts their rights in court and subsequently obtains the entry of a note of dispute, etc.
What should you watch out for?
Regularly monitor your properties in the land registry and check the current entries on the title deeds, including any seals and notes. When purchasing real estate, verify the seller’s identity and authority, as well as whether the documents match the actual condition of the property. Unexplained rapid transfers or an unreasonably low purchase price may be warning signs.
Leave it to the experts
When buying or selling real estate, it’s worth paying just as much attention to legal issues as to the purchase price or the property’s physical condition. A thorough review of the property will help you identify risks early on and avoid unnecessary complications, additional costs, or protracted disputes.
We will help you verify the information in the real estate registry, ownership relationships, registered encumbrances, and related documents. We’ll point out any discrepancies and suggest ways to resolve them before you sign the contract. We’ll prepare the contract documentation to protect your interests and set the terms for the secure payment of the purchase price and the transfer of the property.
