Then pay close attention to any discrepancies as regards its owner in the vehicle registration certificate. The Czech Civil Code protects the buyer and will acknowledge their ownership rights even if it turns out that the seller was not in fact the owner. This is not automatic though. To get this protection, statutory requirements must be met (see Section 1109 et seq. of the Czech Civil Code). One of them is the buyer's good faith.

Recently, the Czech Supreme Court rejected the claim of a Czech company that bought a tractor from an agricultural company even though the agricultural company admitted (and declared in the purchase agreement) that it was the owner, but for administrative reason, was not registered as the owner in the vehicle registration certificate. Some time later, a previous owner appeared and claimed that he was in fact the owner. Although he had sold the tractor in the past, he claimed that he had never been paid and that he had withdrawn from the purchase agreement.

According to the Czech Supreme Court, not being registered as the owner in the vehicle registration certificate does not necessarily mean a lack of ownership. However, if the buyer knows about such a discrepancy, it should put them on red alert when it comes to ownership. If they nevertheless proceed with the transaction relying merely on the seller's declaration, the buyer is not in good faith and will not become the owner.

(Supreme Court judgment of 26 July 2022, Case No. 23 Cdo 1837/2022)

Author: Tomáš Král