May 20 2025

Represented a client in a dispute over a misleading entry in the Real Estate Register

Incorrect debt record in the real estate register – how the court confirmed there was no debt

A client turned to us after discovering a record in the Real Estate Register indicating a debt for an apartment she had fully paid for back in 1993. Although the property was lawfully acquired and paid for, the entry remained and caused concern among potential buyers. Our legal team successfully represented the client in court, and the inaccurate debt record was removed.

How did the problem arise?

The client purchased an apartment from the municipality in 1993 under the Housing Privatization Law. The property was fully paid for according to the payment schedule. However, a record stating an outstanding debt remained in the Real Estate Register for decades.

This entry came to light only when the client began preparing to sell the property. While the record did not legally prevent the transaction, it raised questions among buyers, affected the property’s credibility, and could have influenced its market value.

What steps did the client take before seeking legal assistance?

Before reaching out to us, the client took several steps on her own:

  • She submitted original payment receipts to the Centre of Registers, but they were rejected due to the absence of an official confirmation from the original seller (the municipality).

  • She contacted municipal authorities and archives, but was informed that records of such payments are only retained for 10 years, and no additional verification could be provided.

Despite having proof of payment, the client had no way to officially correct the register through administrative means.

Our legal approach

Our legal team prepared a lawsuit based on the following key arguments:

  • The property was lawfully acquired under the Housing Privatization Law;

  • The client presented original, authentic payment receipts;

  • The municipality had no record of outstanding debt and raised no objections to the claim;

  • The record in the Real Estate Register did not reflect the actual situation and harmed the property’s reputation and buyer confidence.

The court ruled in our client’s favor. It confirmed that the property had been fully paid for, and the remaining debt record had no legal basis. This decision became the legal foundation for removing the entry from the Real Estate Register.

Even though the lawsuit was successful, the court did not order the opposing party to compensate legal expenses. The reason:

  • The client had nearly 30 years to verify her property records;

  • Had she done so earlier—while the municipality’s documentation was still available—the issue could have been resolved without going to court;

  • As a result, the court held that the client had to bear the cost of legal assistance.

What every real estate owner should know

✔️ Even if your property has been fully paid for, outdated or inaccurate entries may still remain in public records.
✔️ Such entries may raise red flags for buyers, decrease trust, and affect the sale price.
✔️ As a property owner, you are responsible for ensuring your public records are accurate.
✔️ Periodically reviewing your real estate register data can help you avoid disputes and unnecessary expenses.

Final takeaway

This case serves as a reminder: along with ownership rights come responsibilities.
When you acquire property, you must also monitor and protect your rights actively. Failure to do so may lead to unnecessary complications and costs, as it did in our client’s case.

🤝 Need help with real estate documentation or registry issues?

We assist in evaluating documents, representing clients in disputes, and ensuring your real estate records are clear and accurate.

📩 info@prevence.legal
📞 +370 664 42822

Project team
Gabrielė Šinkonė
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