I signed a purchase agreement under duress or by mistake. Will the Land Registry stop registration if I notify it?

You signed a purchase agreement under pressure from a creditor or relatives, or signed something other than what you thought you were signing, and the registration application has already been filed with the Land Registry. The first impulse is often to write to the Land Registry asking it not to approve registration. The effect of such a letter depends primarily on the form in which the agreement was concluded.

What the Land Registry examines in an agreement

For an ordinary agreement, the cadastral department of the district office examines, among other things, whether the agreement contravenes the law and whether the declarations of intent are sufficiently definite. It also takes account of circumstances that could affect approval of registration (Section 31(1) of the Cadastral Act). The scope of review differs for agreements authorised by a lawyer and for notarial deeds.

The following quotation is reproduced in its original language:

Ak ide o zmluvu o prevode nehnuteľnosti, ktorá bola vyhotovená vo forme notárskej zápisnice alebo autorizovaná advokátom, okresný úrad posudzuje zmluvu iba z pohľadu, či je súladná s katastrálnym operátom a či sú splnené procesné podmienky na povolenie vkladu.

§ 31 ods. 2 katastrálneho zákona

In Cadastral Bulletin 2/2022, the Geodesy, Cartography and Cadastre Authority of the Slovak Republic (ÚGKK) concluded from this that, for such agreements, the Land Registry does not consider a party’s allegation of duress, mistake or a declaration made without serious intent, because it does not assess the validity of the agreement.

Ordinary agreements with certified signatures

For other agreements, ÚGKK states that the Land Registry must address the objection because its decision must be based on reliably established facts (Section 3(5) of the Administrative Procedure Code). Notification alone is not enough, however. The person alleging duress or mistake must identify evidence supporting that allegation (Section 34(3)); according to ÚGKK, if they do not submit it themselves, the Land Registry will ask them to do so. If the evidence establishes that the agreement is invalid, the Land Registry will refuse the registration application (Section 31(3) of the Cadastral Act) and, according to ÚGKK, must give detailed reasons for that refusal. If the evidence does not establish invalidity, the objection does not prevent registration from being approved.

The outcome also depends on the nature of the defect in consent.

• Duress and lack of serious intent. A legal act must be performed freely and with serious intent; otherwise, it is invalid (Section 37(1) of the Civil Code). Whether the pressure under which you signed actually deprived you of free will is assessed in light of the circumstances.
• Mistake. An agreement is invalid if the mistake concerned a fact decisive to its conclusion and the other party caused the mistake or must have known of it, and also if the other party caused it intentionally. A mistake as to motive is not sufficient (Section 49a). You must also invoke that invalidity against the other party; otherwise, the agreement is treated as valid (Section 40a).
• Distress. A person who concluded an agreement in distress on manifestly disadvantageous terms may withdraw from it (Section 49). If they withdraw before the decision on registration, the Land Registry will discontinue the proceedings (Section 31b(1), letter (b) of the Cadastral Act). If the other party disputes the validity of the withdrawal, the court will decide that issue.

If the agreement was authorised by a lawyer or drawn up as a notarial deed

In this case, the objection must be dealt with in court. The Land Registry must suspend the registration proceedings if a court has issued an interim injunction prohibiting a party from dealing with the property (Section 31a, letter (e) of the Cadastral Act). A prohibition on dealing with an asset is among the measures a court may impose (Section 325(2) of the Code of Civil Contentious Procedure). Whether the court grants it depends on the circumstances. It affects registration only if the Land Registry learns of it before deciding on registration. For a transfer agreement authorised by a lawyer that is consistent with the cadastral records and meets the procedural requirements, the Land Registry decides on registration within 20 days; otherwise, it decides within 30 days. If either party has requested expedited proceedings, it may decide within 15 days (Section 32).

If registration is approved in the meantime, the agreement’s invalidity is addressed in litigation, for example in proceedings for a declaration of ownership. We discuss the liability of the lawyer who authorised the agreement in the question on a lawyer’s liability for an authorised agreement. If you did not sign the agreement at all and someone forged your signature, a different procedure applies. We discuss it in the question on a fraudulent property transfer.

What to do immediately

Preserve messages, record the circumstances in which you signed and identify witnesses while the evidence is still available. In the case of mistake, invoke invalidity against the other party in writing. For an ordinary agreement, send the Land Registry a statement together with a proposal identifying the evidence to be taken; for an agreement authorised by a lawyer or a notarial deed, apply to the court. In every case, time matters because the Land Registry decides on registration within statutory time limits.

How we can help

We will assess whether you have grounds to claim invalidity or withdraw from the agreement and prepare a statement for the Land Registry as part of our suspended Land Registry proceedings and refused applications service. We will prepare an application for an interim injunction and a statement of claim, and represent you in court proceedings, including proceedings for a declaration of ownership after registration.