Mortgages

A mortgage is a specific kind of loan enabling you to purchase real property and to renew or improve the quality of your current housing. This loan is secured by a lien on real property and in most cases a long term loan with a maturity of more than 5 years. In some cases, the bank may provide loans with a maturity of 30 years and so you should pay increased attention to all the formalities pertaining to the loan. The growing number of fraudulent real estate transfers entailed the amendment of the Act on Notaries and Notary Activities. If you use the services of a notary, the property transfer will be not only safer, but also simpler and cheaper.

If the agreement on real property transfer is drawn up in the form of a notarial protocol or authorised by an attorney, the cadastre administration will evaluate it only from the aspect of compliance with the cadastral operate and the process-conditions for the approval of the registration, what will significantly speed up the proceeding. If the cadastre administration finds no discrepancy with the cadastral operate and states the compliance with the process conditions, the cadastre administration will decide on the registration request within 20 days. In the case of contracts on real estate transfers drawn up in the form of a notarial protocol or authorised by an attorney - no certified signatures of the parties (or their possible representatives) will be required.

Another advantage of using notary services is that when combining the electronic announcement on the intended registration-request in the real-estate cadastre and an electronic way of filing by a notary - is the lower administrative fee of just 18 € (the standard fee being 66 €).

 

Rely on the notary

Since 2004, some banks offer a mortgage without the need of a notarial protocol. This is substituted by a blank bill-of-exchange issued by the bank. However, you still may draw up the contract into a notarial protocol – the advantage being the protection offered and guaranteed by the notary. If you suffer any damage due to the property transfer due an errancy of the notary, the entity liable for it is the state (since the damage was caused in the exercise of public authority). You can regressively claim indemnification from the notary (this is also the reason, why every notary is compulsorily insured).

The notary performs his/her activity impartially and independently, equally ensuring the rights and interests of the justified interests of all the parties to the legal act. There is the historical rule distinguishing the position of various legal professions - i.e. the judge is above the parties, the notary - is between the parties, providing all participating parties the same position and protection and the attorney, promoting the interests of the party being his client.

With every transfer of real estate with contracts not drawn up by a notary in the form of a notarial protocol (or not authorised by an attorney) - a compulsory appurtenance of each party is a certified signature. With contracts draw up in the form of a notarial protocol, no certified signatures are required, since the identification of the parties of the notarial protocol will be conducted by the notary himself when drawing it up.

The act of drawing-up a notarial protocol needs to be agreed in advance, while for an attestation of signature, you simply need to visit the notary in his business hours.

The notary's compensation for the performed notarial activity and his cash expenses depends on the real property's price, the number of certified signatures and pages of the protocol. Everyone can simply determine the fee of a notary for a notarial act, since this fee will be the same with every single notary in the Slovak Republic, because this fee is prescribed by the Ordinance of the Justice Ministry on the Compensations and Expenses of Notaries.

 

The institution of notarial deposit

For increasing the security with real property transfers - people often use notarial deposits. The buyer can pay the purchasing price for the real property (or a part thereof) to the notary's account dedicated to notarial deposits. The money can be deposited directly to the deposit account (by direct deposition or bank transfer). A deposition in cash at the notary office (into the notary's hands) is not possible. The notary will draw up a protocol on that deposition, specifying the agreed conditions, under which, in the case of proper performance - the money can be handed over. So the buyer and the seller need not fear to become a victim to fraud.