Abstract

The situation in which the legal status of a property disclosed in the land and mortgage register and its actual legal status are the same is most desired from the viewpoint of the security of legal transactions. The applicable laws provide for a number of solutions whose ratio legis is to ensure that those remain the same; for instance Art. 36.3 of the Land and Mortgage Register Act stipulating the possibility to enter a warning that the legal status in the land and mortgage register is incompatible with the actual legal status, and Art. 10.1 of the Land and Mortgage Register Act providing for the possibility to bring an action requesting removal of such incompatibility. However, common sense makes us consider that it is impossible to eliminate all such cases. One of the reasons of such a state of affairs may be a defective striking out of an entry in the land and mortgage register.

The above mentioned fact conflicts with the interest of third parties which for a variety of reasons may be interested in the legal status of a specific property. In line with Art. 2 of the Land and Mortgage Register Act such persons base their knowledge of that status on the contents of land and mortgage resister entries. Therefore, the Land and Mortgage Register Act provides for a special regulation which is aimed at protecting persons acting in trust of the land and mortgage register and by the same token ensuring security of real estate transactions. It concerns the principle of public credibility of land and mortgage registers which seems to be the most relevant institution of the entire land and mortgage resister system.