Yes, if the bank is the first-ranking secured creditor and notifies the tax authority in advance of enforcement of its lien. The authority’s consent is then unnecessary. However, the bank may sell by direct sale, without an auction, only if the lien does not secure a consumer loan. If the bank sells in the owner’s name, according to ÚGKK, the Cadastre checks whether the tax authority received the notification before the sale agreement was concluded. If the bank does not rank first, or the owner sells the property themselves, the tax authority’s prior consent is required.
You are buying a flat or house that a bank is selling through enforcement of its lien by direct sale, without an auction. In addition to the bank’s lien, the ownership record shows a tax authority lien and a note stating that the owner may not deal with the property without the tax authority’s consent. Before signing, you need to know whether the Cadastre will permit registration without that consent and what the bank must provide.
A direct sale is possible only if the lien does not secure an obligation under a consumer contract, for example where the loan was made to a company or an entrepreneur. In the case of an individual’s ordinary mortgage loan, the bank may obtain satisfaction only through a sale at auction or under special legislation (Section 53(11) of the Civil Code).
What the prohibition on dealings means
If the tax authority creates a lien to secure tax arrears, its decision must also prohibit dealings with the property subject to the lien without the tax authority’s prior consent (Section 81(2) of the Tax Procedure Code). The Cadastre records this as a note restricting the owner’s right to deal with the property (Section 29(1) of Decree No. 461/2009 Z. z.). We explain the difference between restrictive and merely informative notes in the question on notes on the ownership record. If consent is missing, registration proceedings are suspended because the right to deal with the property is restricted under special legislation (Section 31a, letter f), of the Cadastral Act).
The exception for the first-ranking secured creditor
The Tax Procedure Code provides for cases where the property is sold by the creditor whose lien is registered first.
The following quotation is reproduced in its original language:
Právne úkony týkajúce sa predmetu záložného práva po vydaní rozhodnutia o zriadení záložného práva môže daňový dlžník vykonať len po predchádzajúcom súhlase správcu dane. To neplatí, ak ide o výkon záložného práva prednostným záložným veriteľom podľa osobitného predpisu v mene a na účet záložného dlžníka alebo v mene záložného veriteľa a na účet daňového dlžníka […] túto skutočnosť je prednostný záložný veriteľ povinný vopred oznámiť správcovi dane.
The exception therefore applies only to the first-ranking secured creditor. If the tax lien was registered before the bank’s mortgage, the bank does not rank first and cannot proceed without the tax authority’s consent. Priority is determined by the date of registration, which for immovable property means registration in the Cadastre (Section 151k(1) of the Civil Code and Section 81(8) of the Tax Procedure Code).
What the Cadastre checks
In Cadastral Bulletin 1/2025, the Geodesy, Cartography and Cadastre Authority (ÚGKK) takes the view that, in such a sale, the Cadastre does not check for the tax authority’s consent. It does, however, check whether the first-ranking secured creditor has complied with its notification obligation. The Civil Code provides that, when enforcing a lien, the secured creditor acts in the name of the security provider (Section 151m(6) of the Civil Code). If the bank sells in the owner’s name, according to ÚGKK, it must prove that notification was delivered to the tax authority in advance, meaning before the sale agreement was concluded.
If the secured creditor sells in its own name, according to ÚGKK, compliance with the notification obligation is not checked. In its view, the creditor is then acting in its own name rather than in the name of the tax debtor. ÚGKK also relies on a commentary on the Civil Code, according to which the rules on representation cannot automatically be applied to the relationship between the secured creditor and the security provider.
Which encumbrances remain after the sale?
When the first-ranking secured creditor enforces its lien, the collateral is transferred free of the other creditors’ liens (Section 151ma(3)). The other creditors are paid in order of priority from the proceeds remaining after the bank has been paid and the necessary and reasonably incurred costs of enforcement have been deducted. The Civil Code rules apply to a tax lien unless the Tax Procedure Code provides otherwise (Section 81(12)). Specify in the sale agreement who will arrange removal of the tax lien and the note, and when. The tax authority may cancel its decision creating the lien, for example where the arrears have been paid or the property subject to the lien has ceased to exist (Section 82). We discuss sales through enforcement of a lien generally, and who acts for the seller in such sales, in the question on selling property subject to enforcement proceedings.
How we can help
Before you sign, we will check the priority of the liens, the notes and the bank’s evidence of notification to the tax authority as part of our property due diligence service, and structure the purchase through our property purchase service. If the Cadastre has already suspended registration proceedings, we will handle the matter through our suspended and refused cadastral registration proceedings service.
This answer provides general information on the law as at 3 October 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.
