A lien can become time-barred. How do you know when it has? A lien does not become time-barred any earlier than the debt it secures. In other words, if the secured debt has not become time-barred, neither can the lien. So the secured debt has to become time-barred first (the limitation period is generally three years, with certain exceptions).

The limitation period for a lien starts to run on the day the right could first be exercised. That is the day on which the lienholder's right to have the secured debt satisfied from the collateral arose. In other words, the day on which the lienholder is entitled to demand that the secured debt be paid out of the proceeds of selling the collateral (because the debtor failed to pay the secured debt properly and on time). The limitation period is three years.

How to delete a time-barred lien

The first option is for the owner and the lienholder to agree on deleting the lien from the Land Registry. That is the simplest route. Lienholders, however, often resist it. If the lienholder does not agree, the procedure is as follows.

File a declaratory action with the court.

Watch the wording of your claim; the exact words matter. "The lien has lapsed" is not the same as "the lien does not exist", or "the property is not encumbered by a lien". The Supreme Court draws this distinction (perhaps even too) strictly. There is a difference between (1) accepting that the lien did arise but later became time-barred, and (2) disputing the existence of the lien from the outset. Choose the first: the time-barring of a lien corresponds to the wording of Section 618 (§ 985) of the Civil Code, so the claim should seek a declaration that "the lien is time-barred".

By contrast, the case law makes clear that the relief "the lien does not exist" relates to a defect in the legal grounds for acquiring the lien. It would correspond to the wording of Section 986 of the Civil Code, which the Supreme Court regards as wrong (where what is really at issue is the lien becoming time-barred).

File an application to have the time-barred lien deleted from the Land Registry.

Once you have a final and binding court decision declaring that the lien has lapsed by becoming time-barred, you can turn to the cadastre. The cadastral office "deletes" the lien on the application of a person who has a legal interest in its deletion, above all the owner. You have to file an application to delete the lien with the relevant Land Registry and pay the administrative fee (2,000 CZK).

Do you have doubts about whether a lien on your property might be time-barred? We would be glad to help you have it deleted.