The Civil Chamber of the Supreme Court adopted a resolution on invalidating a mortgage entry in the land and mortgage register. It is an important ruling for the entire real estate market.
In its resolution dated 8 September 2021, III CZP 28/21, the Supreme Court stated that the presumption that the content of an entry in the land and mortgage register is consistent with the actual legal state may be rebutted in any proceedings. It is therefore not necessary to institute a case for reconciliation of the land and mortgage register with the actual legal state.
This resolution also applies to a mortgage entry.
Therefore, in the course of proceedings, a plea of inconsistency may be effectively raised. In turn, the court has the possibility to determine this issue on its own, as long as it is a premise for the final decision.
However, in such situations the court’s decision does not change the entry in the Land and Mortgage Register and has effect only between the parties to the proceedings.
Thus, for example, in payment cases, it may be examined whether the security had been created at all, or whether the security had not fallen prior to the commencement of the proceedings.
This is important information for practically everyone who secures any debt with a mortgage.