13.11.2019 14:52:27

When in doubt, cadastral register records need to be verified, one cannot rely on good faith

The Supreme Court has recently decided under what conditions can a pledgee acquire the right of pledge ownership from pledger who is contrary to reality registered as the real owner in the cadastral register. Although common caution does not fundamentally include an obligation to take action to verify correctness of the record in the cadastral register, in this case the pledgee was aware of the circumstances that should have raised doubts about the correctness of the record. If such information is known to the acquiring person, one cannot invoke good faith in the cadastral register without verifying those circumstances. Those circumstances may include a notice of dispute, ongoing legal proceedings to determine property rights or other material facts, for instance material facts ascertained in the course of legal due diligence.

(Judgement of the Supreme Court 21 Cdo 4540/2018 of 25th June 2019)