Investor Guide to Europe 2014
| 85
TYPES of oWnERSHIP
Î
freehold
ownership
•
The Slovak Civil Code defines ownership as the right to hold,
use, enjoy the fruits and benefits of, and dispose of a property
in the most absolute manner, subject only to statutory restric-
tions. All owners shall have equal rights and obligations and
shall be provided with equal legal protection.
•
Ownership rights, right of lease of a land plot (if it exceeds or is
expected to exceed at least five years in duration), easements,
mortgages, pre-emptive rights and other rights regarding real
estate are registered in the Slovak Land Registry
(kataster
nehnutel’ností)
.
Co-ownership
•
Pursuant to the Slovak Civil Code a property may be co-owned
by more persons (legal or natural), rights and obligations of
which are determined by the ownership share to the property
(podielové spoluvlastníctvo)
.
•
The ownership shares of co-owners are equal, unless otherwise
provided by:
- statutory provisions (e.g. as a result of heritage); or
- agreement of co-owners.
•
The co-owners decide upon the management of co-owned
property by a majority decision of co-owners based on the size
of their shares.
•
If one of the co-owners wishes to transfer his/her share, the
other co-owners have a statutory pre-emptive right, unless
statutory exceptions apply (e.g. transfer of the share to family
relatives).
•
The co-owners can agree on termination of the co-ownership
and on mutual settlement.
•
Ownership of buildings with apartments and/or non-residen-
tial premises is accompanied with a specific type of statutory
co-ownership. The units in the building (flats, non-residential
premises) are owned by the owners of such units (either solely
or as a co-ownership) and then all owners of the units in such
building share a co-ownership right to the joint parts of the
building (e.g. a roof of the building, stairs and halls), joint equip-
ment of the building (e.g. chimney of the building), accessories
of the building (e.g. garden) and to the land plot (on which is
the building situated and to the adjacent land plot). This kind of
co-ownership cannot be terminated.
Separate ownership of buildings and land plots
•
In Slovakia, buildings do not form legally part of the land plot
they are built upon (the
superficies solo cedit
principle does
not apply). Therefore, it is possible that the building and the
respective land plot are owned by different persons. This also
means that transfer of ownership of building is independent
from transfer of ownership of a land plot it is built upon (i.e. it
is possible to transfer just the building without the land plot as
well as to transfer both together).
Î
Leasehold
•
The owner of the land plot as the landlord and the constructor
of a building may agree on a long term lease of the land plot,
which includes the right of the constructor to build and use the
building on the land plot (this must be specifically agreed, othe-
rwise the tenant is not entitled to build on a leased land plot).
•
If such lease is terminated, the tenant is generally required to
remove the building, unless the parties agree otherwise.
RIGHTS affECTInG oWnERSHIP
Î
Easement
(vecné bremeno)
•
Is a burden imposed upon a property, obliging the owner of
such property to tolerate, to refrain from or to do something in
favour of another person.
•
Benefits either any owner of certain property
(in rem)
or a
particular person
(in personam).
•
As an attribute of ownership right, easements
(in rem)
are
transferred with the ownership of the respective (“entitled”)
property.
Î
Mortgage
(záložné právo k nehnutel’nosti)
•
Is a security encumbering the asset, which entitles the benefi-
ciary to a preferential right over other creditors in the event of
a forced sale of the relevant asset.
•
If the secured claim in not fulfilled duly and timely, it entitles
the beneficiary to sale of property and settle its claims from
the proceeds.
•
Any real estate property in Slovakia can be mortgaged (gene-
rally also with more than one mortgage).
Î
Pre-emption right over real estate
•
Is a right that is created either by virtue of law (e.g. right of co-
owners, apartment buildings) or by an agreement.
•
Pre-emption created by an agreement can be agreed in a form
(i) of an agreement enforceable only between the contractual
parties
(contractual pre-emption right)
that does not pass to
subsequent owners; or (ii) of a right encumbering the property
(in rem pre-emption right)
, which is binding also upon the legal
successors of the obliged person and is created upon its regis-
tration in the Slovak Land Register
•
The consequences of violation of a pre-emption right created
upon an agreement depend on its type: (i) in case of breach
of a
contractual pre-emption
right, the party holding the right
may only claim damages from the party in breach (unless
other sanctions, such as contractual penalty, are agreed); and
(ii) in case of breach of a in rem pre-emption right, the party
holding the right may demand that the property is offered to
it for purchase by the person that acquired it in breach of the
pre-emption right or, if it does not make use of the right to
claim such offer from the new owner, the pre-emption right
remains preserved towards the new owner of the property.
PRoPERTY LaW
