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  • POSSIBILITY TO REGISTER MACHINES IN THE LAND REGISTRY, SO-CALLED RESERVATION FOR MACHINES

    30. 05. 2014

    One of the areas regulated by the New Civil Code (Act 89/2012 Coll.) are issues surrounding the notion of an object and its components, i.e. whether you can dispose of some items separately or only together with the object they are an indivisible part of. The definition itself of an object and its components contained in the New Civil Code has been adopted verbatim from the previous version, and according to it components of an object are such items which are by their nature an integral part of an object and cannot be separated from it without reducing the value of it. However, significant changes have been introduced to the follow-up provisions.

    The above definition gives rise to a series of questions in cases when a movable item is firmly attached to another object (typically immovable, such as a building or a parcel of land). We can think of equipment or machines in factory halls which cannot be easily de-installed, but also of certain types of elevators, parts of AC systems, boilers, transformers, etc. This may create problems in situations when the owner of the machine is different from the owner of the immovable propertywhere the machine is located. To prevent future disputes about the ownership of the machine, the legislator has made it possible for parties to register in the Land Registry the fact that a particular object (machine) is not a part of the immovable property. If the owner of the machine and the owner of the real estate take advantage of this possibility and register the machine (so-called reservation for machines), there are going to be no disputes in the future about whether or not a particular machine is a part of the immovable property. The entry stays in the registry regardless of whether the ownership title is transferred, or a lien or other third party´s right is created over the property. The reservation remains effective vis a vis any future owner.

    When registering the machine, the Land Registry does not review whether the machine meets the general definition of a component of an object. In other words, to avoid future disputes, the reservation may be registered with respect to items where doubts may arise whether or not the object is a part of the immovable property (building or land). It is recommended to all those who own machines or equipment attached to a third party´s building or land to consider the possibility to register the reservation in the Land Registry.

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