Notice of freezing and confiscation orders in accordance with the Regulation (UE) 2018/1805

Part 1. Registry requirements

1. What is the procedure to lodge or present these judicial orders in the Land Register? Particularly electronic.

Court orders are contained in the decision of the competent county court, which determines a temporary measure prohibiting the alienation or encumbrance of real estate, or confiscation of real estate.

In order to ensure the confiscation of property benefits achieved by an illegal act, the authorized prosecutor may, before and after the initiation of criminal proceedings, propose insurance with any temporary measure that achieves this purpose, and in particular:

by prohibiting the alienation and encumbrance of real estate or real rights registered on the real estate, with the recording of the ban in the land register, confiscation of the real estate and its entrustment to the state body responsible for the management of state property.

The court’s decision is delivered to the municipal court that maintains the land register directly or by post, and it can be delivered electronically. When submitting a decision containing an order, the decision should be signed with an advanced electronic signature. Also, the decision can be converted into an electronic form (scanned) and signed with an advanced electronic signature.

2. Possibility of registering these orders in the event that who appears as the owner of a property according to the land registry («A») is a different person from the defendant (or person «B») who is issued a freezing or confiscation order against

2.1 The judgment should not be registered if the owner according to the land register is “A” and the judicial measure is concerning to “B”

2.2 Land registers would refuse entry because entry in the land register is only allowed against a person who, at the time of submission of the proposal for entry in the land register, is registered as the owner of the land or the holder of the right, in respect of which the entry is required, or who is at least registered as such at the same time, or pre-registered.

2.3. The registry owner (“A”) has other legal guarantees in this legal system, such as:
− He should be called or taken to the procedure
− He should be at least notified or called for a hearing within the procedure
− The judgment should indicate that there is a relationship between A and B

3. Type and duration of the registration of these orders

• A freezing order and a confiscation order are considered different; each one of them leads to a different registration or notice.
• In these cases, the judicial orders corresponding to opening procedures lead to a provisional or temporary registration or a registration for an indefinite period of time, depending on the judicial decision.
• In these cases, the judicial orders corresponding to opening procedures lead to a provisional or temporary registration or a registration for an indefinite period of time, in accordance with the criteria of the land register system.

Part 2. Registry effects

1. Effects of the freezing order once registered

• A warning to third parties
• Prohibition of disposal: the owner is not allowed to sell, mortgage or carry out any other act of disposal on the property. The order blocks any possible registration.
• Other effects: The legal transaction by which the defendant or another person to whom the property benefit has been transferred after the entry of a temporary measure in the public register disposes of the thing or right that is the subject of insurance, has no legal effect.

2. Effects of the confiscation order once registered

• A warning to third parties
• Prohibition of disposal: the owner is not allowed to sell, mortgage or carry out any other act of disposal on the property. The order blocks any possible registration.
• It involves the possibility of a forced sale of the property.
• It involves the possibility of auctioning the property.

3. What is the registry proceeding and moment in which the opening procedures of freezing or confiscation are applied for registration?

The freezing order or confiscation order is entered in the form of record of encumbrance and alienation of real estate. A recording is an entry that makes visible the relevant circumstances for which it is determined by law that they can be recorded in the land registers.

4. What are the executing authorities of these orders in this national system and what is the role of the land registers?

The county court ex officio submits the decision determining a temporary measure prohibiting the alienation or encumbrance of the real estate to the municipal court where the real estate is located. The municipal court will allow registration only on the basis of documents drawn up in the form prescribed for their validity and on the basis of documents that do not have obvious defects that cast doubt on their authenticity.

Part 3. National land registry experience

Court orders to freeze or seize real estate are common.