How to read the property certificate

Most buyers look at the property certificate to confirm one thing: that the seller really is the owner. That is necessary, but far from sufficient.

What is registered

The register of rights to immovable property does not only record ownership. It also records mortgages, easements, leases and rights of use, prohibitions, and other restrictions and encumbrances created in accordance with the law.

This means a property can have a perfectly regular owner and at the same time be unsellable without resolving something else.

Mortgage

Mortgages are registered in the encumbrances section. The entry includes the details of the debtor and the creditor, a description of the pledged property, the amount of the debt and the repayment term.

If the property is mortgaged, its release requires a document proving that the debt has been paid. Don't accept the promise that "the bank will remove it after payment" as a solution without seeing in writing how and when.

Easement

An easement is someone else's right over your property — for example, right of way. It is registered on both sides, for the property that serves and the one that benefits, and when it affects only part, that part is identified.

Prohibitions and restrictions

Prohibitions are registered with their date of creation, nature and duration. A registered prohibition can come from a court dispute or a security measure. A property with a prohibition cannot be transferred.

What to do in practice

Ask for a recent certificate, not an old copy — encumbrances can be registered at any time. Read the encumbrances section, not just the name. If something is unclear, ask the MCO or the notary before you sign, not after you have paid the deposit.