Legal Q&A · Construction & Development

The bank requires a building under construction to be registered. How does this work?

Law as at 10 September 2026

Short answer

A building under construction is recorded in connection with the creation, change or termination of a right to it, typically for bank security or a transfer. Under § 46(3), the expert report must clearly establish the structural and functional layout of the first above-ground storey. The relevant permitting document under the new or transitional building-law regime must also be submitted. The building’s initial entry must be distinguished from constitutive registration of a contractual mortgage; waiting for occupancy approval is not itself a prerequisite.

The question usually comes from the bank rather than the person building. The loan is approved, drawdown depends on creating a mortgage, and the building under construction has not yet been recorded in the Land Register. Registering the building under construction provides a solution.

Why a building under construction is registered

The Cadastral Act records several categories of buildings attached to the ground by solid foundations. Buildings under construction are included, but with a condition governing the entire process: they are recorded in connection with the creation, change or termination of rights to them (§ 6(1)(c), point 3 of the Cadastral Act).

A building under construction therefore cannot be registered merely because it stands. Registration occurs when a right is to attach to it, in practice in two situations: a bank creates a mortgage over it, or it is transferred. The same applies to flats and non-residential premises under construction, which the descriptive information file treats as a separate category (§ 7(b) of Decree No. 461/2009 Z. z.).

What the Land Register records about it

The data for a building under construction include the parcel number of the land on which it will be built, the building-type code or description, location code, title-sheet number and further identifying details (§ 11 of the Decree).

Notice what is absent: a building number. That belongs to a completed building (§ 10 of the Decree). A building under construction is therefore identified differently in documents and contracts. Using a template for a completed building causes submissions to be returned.

How the authority assesses the stage of construction

The decisive requirement is set directly by § 46(3) of the Cadastral Act: the expert report must clearly establish the structural and functional layout of the first above-ground storey. This is therefore neither a discretionary estimate by the authority nor merely a percentage of completion.

The Act requires a final decision on the building project and an expert report on the stage of construction. For buildings permitted under the earlier legislation, the transitional regime and the corresponding building permit must be applied. The person undertaking the building named in the relevant document is recorded as owner unless another public or other document proves a different owner. The supporting documents and stage of construction should therefore be checked before the loan drawdown arrangements are set.

How registration proceeds

The building itself is entered by declaratory rather than constitutive registration. Rights arising by statute or a state authority’s decision are recorded declaratorily on the basis of public and other documents (§ 34(1)), either without an application or on an application by the owner or another entitled person, accompanied by a document confirming the property right (§ 35). A mortgage, by contrast, is established by agreement and constitutive registration. These are two linked proceedings, and their order matters.

The Decree lists documents suitable for declaratory registration on application (§ 28). The list is open-ended, using “in particular”, but no longer includes the decision assigning a building number that used to appear there. For buildings, relying on what worked years ago is therefore insufficient.

Where the process stalls in practice

  • The owner differs from the person named as undertaking the building. The difference must be explained by documents under § 46; a documented change of ownership or joint marital property need not mean that the original permit is defective. We explain this in our answer on a building that the Land Register has not recorded.
  • Identification in the mortgage agreement. A building under construction has no building number, so it is identified by parcel, type or description. The contract must identify the subject as required by § 42(2).
  • Order of proceedings. The documents for the building’s initial entry must be coordinated with the application for constitutive registration of the mortgage; the absence of an entry does not itself mean that the building does not exist as a thing. The delivery of documents affects the priority of the related entries under § 41(2).
  • Suspension and deadlines. If the authority requests additional material and the deadline passes without compliance, proceedings are discontinued (§ 31b(1)(f)), and the whole sequence starts again.
  • Occupancy approval is not the end. Registering the completed building with its building number requires further proceedings, and the encumbrance wording on the title sheet must be aligned with the new position.

How we can help

For development projects, we arrange the sequence so that registration of the building under construction, mortgage registration and loan drawdown follow each other; see development project finance. We prepare documents and applications through contract preparation and registration applications; for contractors and construction companies, this forms part of legal services for construction companies.

If the bank has made drawdown conditional on registering a building under construction, contact us before the mortgage agreement is signed. The order of proceedings is set at the start and is difficult to repair retrospectively.

This answer provides general information on the law as at 10 September 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.

More legal questions

All questions and answers
  1. We built exactly to the employer’s design and the works are defective. Are we liable? Yes, if you failed to warn that the design or instructions were unsuitable although professional care would have revealed this. The defence “we followed the design” is not enough: the Commercial Code exempts a contractor only where it warned the employer, who then insisted in writing on using the items or instructions. Work must be suspended as necessary until the employer decides. A provable warning and the employer’s written insistence are therefore crucial; the site diary is the natural place to record them.
  2. Do we have to arrange supervision by the designer during construction? And what about the architect’s author’s supervision? Yes. The Building Act obliges the builder to arrange design supervision by the designer while the building is being constructed, and continuous supervision in the case of reserved buildings. Alongside it, the author of the architectural work has its own entitlement to carry out author’s supervision, even where the building design is prepared by another designer. The Act does not, however, say to what extent and for what fee the supervision is carried out; that must be set out in the contract with the designer and with the architect.
  3. The architect has delivered a study that does not match our brief. Do we have to pay for it? It depends on whether there is a defect within the meaning of the Act. A study is defective if it does not match the result specified in the contract, for example the capacity, the intended use or the number of variants in the brief. In that case you have remedies for defects and the defects must be notified without undue delay. If the architect kept to the brief and you simply dislike the solution, that is no defect and as a rule you must pay the price.
  4. Who is to arrange the surveying, the ground surveys and the network statements for the design: we, or the designer? Unless the contract provides otherwise, they are arranged by the builder. The Building Act requires it to arrange the surveying data, engineering-geological and other surveys, statements of the consulted legal persons and cooperation with the designer. The designer is, however, responsible for determining the scope of the surveys and measurements that the design requires. The contract with the designer should therefore say expressly who procures what, who pays for it and how this affects the deadlines.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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