Security agreement is one of the options for the creditor how to secure a claim against the debtor. Security can be a real estate, a movable property or other property rights.

There is special legislation of the security right in the cases in which subjects of the security are real estates not registered in the Land Register (for instance a cellar), a collective thing (a company), a set of things (a collection) or a movable thing (e.g. a car) which will not be put in the possession of the creditor on making the security agreement. The security agreement must be written as a notarial deed and in this case the security interest is created by the entry into the Register of Securities kept by the Chamber of Notaries of the Czech Republic, which will be provided by the notary.

The notary can write for you a security agreement for the creation of a security interest to the real property registered in the Cadastre as well. The security interest then is created by the entry in the Cadastre.

Register of securities serves not only for obligatory entries of security interests but it is also possible to search it. You can find out at any notary´s office whether the thing in question is or is not put into pledge for the benefit of a creditor and thus avoid the risk of buying pledged things. A creditor can claim his security interest even on a new proprietor and cannot protect himself by claiming that he did not know about the security interest. Such carefulness can pay particularly when purchasing a an expensive thing, for instance a used car.