Act No. 304/2009 amending the Law of the Slovak National Council No. 323/1992 Coll. On the Notaries and Notarial Activity (Notarial Code) as amended and amending some laws (Act on the Legal Profession, Trade Act, the Cadastral Act and the Law on Administrative Fees), has brought into the legal system of the Slovak Republic a new institute of the authorization of contracts by attorney with a primary view to enhance legal certainty for contractual parties in real estate contracts.
The authorization of real estate contract means all the legal acts, consisting of attorney´s drafting the contract, the identification of the parties to this contract and their representatives, in assessing whether a contract is not contrary to law, does not circumvent the law, is not against good manners and a determination of whether the conclusion of the contract could lead to a damage. The authorization of the contract on the transfer of real estate shall be confirmed by attorney in a form of an authorization clause forming part of the executed contract.
Authorizations of contracts on the transfer of real estate ensure both greater legal protection against fraudulent action of the second party and, secondly, the advantage of the waiver of an obligation of the parties to notarize their signatures (authorization of such contract by an attorney replaces notarial certificate signing). It means that the whole process of concluding such a contract , from its drafting to the signing by the parties will be held in one place, the law firm, and the client, a party to that the contract, will save time and, least but not last, also a considerable amount of money.
Another advantage of the authorization of the transfer of real estate contract by attorney is that the cadastre does not consider legal points of the contract, and in the event of compliance with procedural requirements there is a statutory obligation to decide on the proposal allowing registration within 20 days of the receipt of the motion, and without the paying an increased fee for the registration like in the past.
The attorney is obliged to inform the party to the contract on the transfer of real estate about the insurer and the insurance coverage amount against damages in connection with the authorization of the contract on the transfer of real estate.
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