Negative pledge in the new Civil Code

10.2.2014

This article was written in 2014. If you are looking for up-to-date information on this topic, please contact us at office@arws.cz or by phone on +420 245 007 740. We will be happy to advise you.

Do you really want to effectively secure a claim in the new Civil Code? The new law introduces the so-called material prohibition of alienation (negative pledge). The parties can therefore agree that the debtor is not entitled to transfer the property to third parties or encumber it for a certain period of time. If this is entered in the public register (Land Registry), the Land Registry will not record any changes.