Notarial central register

What it means

The Notarial Central Register is a set of registers kept by the Chamber of Notaries of the Slovak Republic. It includes in particular the register of liens, the register of wills, the register of deeds, the register of auctions and other records that provide legal certainty in transactions and inheritance.

The most important for business is the register of liens. Liens over movable assets, receivables, business shares or groups of assets are recorded there, in other words everything except real estate, which is recorded in the land register. A lien over such assets generally arises only upon registration.

Some registers are public and anyone can consult them online, such as the register of liens. Others, like the register of wills, are not public and are accessed only by notaries, for example in probate proceedings to establish whether the deceased left a will.

How it works in practice

Before buying a vehicle, machine or business share, or before an assignment of receivables, it is worth checking the register of liens to see whether the asset is encumbered. In company due diligence, checking the register is a standard part of reviewing assets and liabilities.

Banks and leasing companies register liens over financed assets. A notary makes the entry on the basis of the lien agreement. After the loan is repaid, the entry must be deleted; otherwise the lien remains in the register and complicates any sale of the asset.

The register of auctions publishes notices of voluntary auctions, for example when a lien is enforced. The register of deeds holds selected documents, such as contracts or declarations, that their authors want to store securely. Each register has its own access rules.

What to watch out for

A lien that is not registered is generally not effective against third parties. A creditor who forgets to arrange registration may lose the advantage of being a secured creditor if the debtor goes bankrupt or sells the asset. Registration should be arranged as soon as the lien agreement is signed.

Register entries depend on identifying the asset and the pledgor. An imprecise description, such as a missing machine serial number, can lead to disputes over what the lien covers. The description of the asset in both the agreement and the register should be unambiguous.