Deletion of a lien (výmaz zástavního práva)
Removal of a lien entry from the title sheet (list vlastnictví) once the lien has ceased to exist, most often because the mortgage has been repaid (§ 1376 of the Civil Code, občanský zákoník), refinanced or released. The cadastral office carries it out under Act No. 256/2013 Coll. on an application accompanied by the bank's confirmation that the secured debt has ceased or its consent to deletion. The administrative fee is CZK 2,000.
Example
The seller of a flat priced at CZK 5,500,000 still owes his bank CZK 3,543,000. His loan is paid off from escrow first, the bank issues consent to deletion and the application for deletion is filed (CZK 2,000). Only then can the buyer register the lien for his new CZK 4,000,000 mortgage at 5.00 % as the only one.
In practice
When a mortgaged property is sold, the buyer's new bank usually accepts that the old lien is deleted only after payment, so the escrow agreement must set out the order of payments and deletion precisely. In refinancing, the old lien is deleted and the new one registered in parallel. After the final repayment, file for deletion yourself rather than waiting for the bank to do it.
How it differs
Deletion follows the kvitance: one is the bank's confirmation, the other the land registry entry. Release of collateral (vyvázání zástavy) is an agreement to free the property before the loan is repaid, but it too ends with deletion.
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