A Bill to Amend and Supplement the Cadastre and Property Register Act (the “Bill”) has been submitted to the National Assembly, aiming to achieve greater security in real estate transactions and digitalisation of the services provided by the Property Register.

First, it is proposed to expand the information that must be recorded in the property profiles in the register. Additional data will now also be entered, such as the tax valuation of the property, where specified in the deed, the legal grounds for transferring ownership, the number and date of court judgments on registered statements of claim, etc. The purpose of this change is to provide the most comprehensive information possible about a particular property, accessible to all third parties through a simple online search using a qualified electronic signature.

As an additional security mechanism, the Property Register will electronically notify property owners of changes to the profiles of their properties. Consideration is being given to allowing such notifications to be sent by SMS at the owners’ request. For certain more significant entries, notifications will also be sent in paper form by post or courier, where current address details are available.

Disputes frequently arise in practice when a person is issued a so-called declaratory notarial deed of ownership based on a circumstantial inquiry. In such cases, the person does not possess a proper title document and relies on acquisitive prescription, with the notary conducting an inquiry by examining several witnesses. The Bill provides that at least one of these witnesses must live in the locality where the property is situated or own a neighbouring property. For the purposes of the circumstantial inquiry, notaries will have free access to the National Population Database and other public registers.

To facilitate traceability, the Bill provides for the introduction of a separate section in each property profile, in which relevant circumstances relating to the above procedure will be recorded, including witnesses’ details, their testimony, the documents submitted, etc.

According to the explanatory memorandum to the Bill, another objective is to remove the requirement to submit cadastral sketches and other documents where the facts and circumstances certified by them are available in electronic registers and systems and can be retrieved ex officio. By doing so, the Cadastre and Property Register Act will be brought into line with the principle of increasing digitalisation.

At present, applications for certificates of encumbrances issued by the Registry Offices are submitted electronically, but the certificates themselves are often not issued in the same manner. The Bill proposes that certificates of encumbrances, as well as other references and certification documents, also be issued electronically, signed with a qualified electronic signature by the relevant official. This would significantly expedite the procedure.

The amendments to the Cadastre and Property Register Act should represent a first decisive step towards the much-needed digitalisation and simplification of the operation of these public registers, particularly in the context of the highly dynamic real estate market.

This article has been prepared for and is part of the Legal Digest issued by Penkov, Markov & Partners. The publications therein do not constitute legal advice and are not binding. Penkov, Markov & Partners reserves all rights to this material, and any distribution thereof is subject to the prior written consent of the law firm.