CHANGES TO THE CADASTRE IN THE CZECH REPUBLIC: A SAFER SYSTEM FOR THE FUTURE

The Czech Republic is preparing to implement significant changes to its cadastral system, introducing new restrictions on data access to combat real estate fraud and enhance security for property owners. These changes are part of a broader effort to protect sensitive information on real estate, while maintaining the necessary transparency in real estate transactions.

The structure of the new cadastral system

The draft amendment to the cadastral law will introduce a multi-level access system that will require identity verification for viewing sensitive data on real estate, including details of ownership and values of real estate. The reform will subdivide cadastral data into four distinct levels. Basic information, such as address and cadastral identification, will remain public to ensure transparency in the transactions.

However, in order to access more sensitive details such as the names of owners or the value of real estate, identity verification will be required. Only authorised persons, such as notaries or banks, will be able to see financial data, while highly confidential information, such as the complete transaction history, will only be accessible to the competent authorities.

This system makes it harder for scammers to obtain data for real estate fraud and ensures more privacy for owners without sacrificing the transparency needed for real estate transactions.

Need for protection against fraud

The changes to the cadastral law in the Czech Republic are due to the need to combat real estate fraud, which has become increasingly sophisticated in recent years.

Currently, when a change to the land register is requested, such as a transfer of ownership, there is a waiting period of 20 days. During this time, the people involved (such as the seller or buyer) may receive a notice and challenge the change if they feel there is something suspicious.

However, scammers have found ways to circumvent this protection. For example, they can falsify sales documents and even the signatures of owners. They can also redirect the owner’s mail to another address, making sure that the notification of the land register never reaches the real owner. In this way, the victim discovers too late that his house has been sold without their knowledge.

The new changes aim to make this process more secure by introducing stricter controls on the identity of those requesting changes and more secure notification systems, to prevent fraudsters from evading official communications.

Monitoring and control of access

A significant improvement in the new system will be the ability for landlords to monitor who has access to their cadastral data. This feature is a crucial step towards greater transparency and security in real estate management. Owners will have better control over their assets and will be able to detect potential unauthorized actions in their properties early.

The Czech cadastral system already offers some protective measures through the Electronic Information service to Participants. Owners can subscribe to notifications about any changes to their cadastral data through various channels, including digital mailboxes, emails or SMS messages. This service, which costs CZK 200 to monitor up to 20 properties, provides an additional layer of security for owners.

The digitization

These changes reflect the evolution of property rights protection in the digital age. While the Czech Republic has traditionally maintained an open cadastral system, with the possibility for any individual or legal entity to buy and sell property regardless of nationality, the new restrictions aim to balance this openness with enhanced security measures.

The reform comes at a time when real estate transactions increasingly involve digital processes, including the electronic submission of documents in PDF format and the use of recognized electronic signatures. These technological adaptations, combined with the new access restrictions, aim to create a more secure and efficient real estate registration system while maintaining the necessary transparency for legitimate real estate transactions.

Impact on the real estate sector

For property owners and professionals, these changes represent a significant step forward in protecting property rights while maintaining the functionality of the Czech real estate market. The new system will continue to support the role of legal professionals and real estate agents in real estate transactions, adding crucial security measures to prevent fraud and unauthorised access to sensitive information on real estate.

In conclusion, the reform of the Czech cadastral system represents an important step forward in the modernization of the national real estate sector. The new system offers a concrete response to contemporary real estate protection challenges and with a low investment, owners can now effectively monitor their properties, preventing potential fraud. These innovations, balanced with the maintenance of necessary market transparency, lay the foundations for a more secure and efficient cadastral system, adapted to the needs of the 21st century.

Sources: https://www.idnes.cz/ , https://www.studiopraga.com/ , https://reality-konopka.cz/