How the Legal Rules, Implementing the Principle of Confidence in the Land Register, Protect Fair, Bona Fide Acquirer

The principle of confidence in the land register states that those who in the legal traffic handle fairly and rely on the information on the rights, which are entered in the land register, may not suffer adverse consequences. The principle protects bona fide acquirer in all business acquisitions, regardless of whether prerequisite for the acquisition is a legal transaction (permit for land registry entry) of the (registered) owner or legal transaction concluded independently of the will of the owner in the case of forced sale. In answering the question whether an acquirer shall, with the entry of ownership right on his behalf (i.e. when he becomes the registered owner) (also) acquire a real property right (also becomes the real owner), we need to distinguish between the two situations. If the transferor (registered owner) is the true holder of the ownership right (true owner) and therefore entitled to dispose of this right, with the entry of ownership right on behalf of an acquirer in the land register the acquirer becomes (true) owner on the basis of (valid) legal transaction of the (real) owner (seller). For this situation, we also use the term business acquisition of a right in rem pursuant to a disposition of the owner. If the transferor (registered owner) is not the true (real) owner, with the entry of the ownership right on behalf of an acquirer in the land register (on the basis of permit for land registry entry issued by the registered owner) the acquirer becomes the true owner only if an additional prerequisite is fulfilled, namely, that the acquirer acted in bona fide, i.e. the acquirer relied in bona fide that the registered owner is also true owner and was not aware that a real owner is another person. This legal consequence arises on the basis of legal rules implementing the principle of confidence in the land registry. For this situation we also use the term business acquisition of a right in rem from a non-owner on the basis of confidence in the land register.