Notice of a property affected by an insolvency proceeding

1. Does your national system admit such restriction?

This land register system envisages this kind of notice or includes the possibility of registering a notice as such.

2. In your system, once registered this restriction, does it block or freeze subsequent registrations (mostly the ones promoted by the owner of the property) until being removed?

Once registered this restriction, it implies a warning to third parties but does not block or freeze subsequent registrations.
Subsequent registration may come pending, but the registration application shall be left in abeyance to wait the final decision of the court, real estate administrator or the authority acting in the case (bailiff).

3. In your system, in principle, will the registration of this restriction be temporary (under a deadline) or indefinitely (it will be in force until being removed)?

Removal of this registration demands the notice from the authority (the bailiff) or from the estate administrator.

4. Indicate the national legal sources about this judicial restriction

Bankruptcy

• According to Bankruptcy Act 120/2004 and Regulation of Ministry of Justice 502/2004 section 2 : the estate administrator must send information about bankruptcy to registrar if the debtor owns real estate or housing company share.

Foreclosure and seizure:

• Enforcement Code 705/2007 Chapter 4 (foreclosure)
• Code of Judicial Procedure 4/1734 Chapter 7 (precautionary measures) and Enforcement Code 705/2007 Chapter 8 (Enforcement of a decision on precautionary measures)
• The bailiff shall immediately give notice to the registrar of the attachment of real estate, a registered special right as well as other mortgageable property and housing company share

Restructing of Enterprises

• According to the Act on Restructuring of Enterprises 47/1993 and the Regulation on Restructing of Enterprises 55/1993 8§ the court or the estate administrator must send notice to land registrar concerning this insolvency proceeding when the debtor owns real estate or housing company share

5. Please, give us an idea about the characteristics of the registration of this restriction in your system

• The court makes decisions concerning foreclosure, seizure, proceedings of bankruptcy and restricting the enterprises. The bailiff can also make decisions concerning the foreclosure. The court or bailiff sends the notice of restriction to the land register. In bankruptcy and restructing of enterprise the notice must be sent to the land register by the estate administrator after the court has made it’s decision of opening the proceedings.
• Nowadays the bailiff can make registration of restriction (foreclosure) directly to the land register and also remove the registration directly from the land register.
• The court and the estate administrator must send a separate notice to the registrar. Registrar must enter the restriction to register at the same day the notice has arrived. The removal of restriction demands also a separate notice to the registrar from the court or the estate administrator.