Notarial Deed as a Basis for Distraint

A notarial deed containing the debtor’s consent to direct enforceability or distraint is the most effective method of securing the repayment of a loan. The notarial deed contains the debtor’s obligation to duly repay their debt to the creditor within the given time under the threat of subsequent distrainment of their assets.

Consent to enforceability agreement is a document that allows a distrainor to directly request distrainment of the debtor’s assets. In the case that a loan is not repaid it is not necessary to prior to distrainment to go through lengthy civil proceedings in which the court first declares the debtor’s obligation to pay, and only after this can distrainment proceedings begin. It may then often be too late to recover the money.

The agreement should preferably be drawn up during the transfer of money at the latest, it can also be entered into for debt that has just come into being. The agreement can be entered into in cases where the repayment of debt is already due and the creditor is willing to provide the debtor with an additional period of time for repaying their debt.

In the Czech Republic, notaries perform a notarial activity, provide legal assistance, perform property administration, and perform other activities for which they are entitled compensation the amount of which, as well as the manner in which it is established, is governed by the provisions of the Decree No. 196/2001 Coll., as amended. The amount of notary's remuneration shall be determined in accordance with the compensation rate per act or total of acts concerning the notary's activity determined by a fixed amount or as a percentage of a tariff rate, whereas the value of the subject of the act serves as the tariff value (e.g. the usual price of a thing, the price of transferred property, the amount of a claim, etc.). Due to a complex calculation of the compensation for the notary's activity, the potential applicants / clients are recommended to address their possible inquiries directly to the notary having the sufficient knowledge of the relevant language.

Notary fee for a notarial record of the agreement on consent to immediate enforceability (notary tariff)