What Is Seizure of Property: Reasons and Consequences • DSA GROUP

Seizure (arrest) of property is a temporary restriction of your right of ownership under which you cannot sell, give away or pledge the property. Such a restriction is applied on the basis of a decision of a court or an authorised body in cases provided for by law, and it is used to secure the enforcement of decisions, the repayment of debts, or as a preventive tool in criminal proceedings.

The purpose of seizure is to prevent the asset from being disposed of in a way that could harm the interests of the state or third parties (for example, creditors or victims). Seizure can be applied in both civil and criminal cases, depending on the circumstances and the legal grounds.

Why is property seized?

If a debt is not repaid, the creditor applies to the court for compulsory recovery and a restriction on the debtor’s right to dispose of the property. The decision is then implemented by a state or private enforcement officer within enforcement proceedings. Separately, in criminal cases, seizure is initiated to preserve evidence, to enable confiscation or to compensate for damage.

If the owner disagrees with the seizure or believes that the procedure was breached, there are mechanisms for appealing against and lifting the seizure of property under the procedure established by law.

Who imposes seizure?

The grounds are always defined by law. In “debt” cases, seizure is imposed by the enforcement service in execution of a court decision. In criminal proceedings, the decision is made by the court (or an investigating judge) at the request of the investigator or prosecutor. In each case, the seizure has a legal basis and is subject to judicial control.

What property can be seized?

The following may be seized:

real estate (including property received by inheritance or as a gift),
movable property (cars, valuables, except awards/prizes),
money in any form (cash or non-cash),
securities and other assets.

In criminal cases, seizure is possible in respect of property considered to be an instrument of crime, proceeds of crime or necessary to secure a civil claim; in civil cases — to guarantee the enforcement of a court decision.

What happens to seized property

In “debt” cases, seized property may be sold to repay the debt, and the proceeds are transferred to the creditor. If a sale is impracticable or loss-making, a separate decision is made. An owner who is not the debtor can defend their rights in court and demand that the seizure be lifted.

Procedure for imposing seizure: key steps

Initiation (by the creditor, the pre-trial investigation body or the enforcement officer) and an application to the court.
The court assesses the grounds, the risk of alienation and whether the restriction of the right is justified.
After the ruling, the seizure is entered in the registers, and the property is placed under guard or under the actual control of an authorised person.
The seizure remains in force until a final decision. If the restriction is found to be unjustified, the property is returned to the owner and the register entries are cancelled.

Criminal proceedings: when and why property is seized

In criminal cases, seizure is used to preserve evidence and to secure confiscation or compensation for damage to victims. Procedural safeguards for the parties and the involvement of a defence lawyer in the criminal proceedings play an important role here, in particular during motions for seizure and their review.

Civil proceedings: preventing the alienation of assets

In civil cases, seizure serves as an interim measure to prevent the defendant from alienating property before the dispute is resolved on the merits. If the risk disappears or the grounds are not confirmed, the seizure may be reviewed and lifted.

Consequences of seizure for the owner

Once property is seized, the owner can no longer carry out any transactions with the asset; state registers block legally significant actions. This creates financial risks for debtors and legal risks for potential buyers of encumbered property.

How to check whether property has been seized

Before entering into transactions, it is advisable to check for encumbrances in:

the State Register of Real Property Rights;
the Unified Register of Debtors (for cases within enforcement proceedings);
the Register of Encumbrances of Movable Property.

How to lift a seizure and what to look out for

A seizure can be lifted by a court decision: a reasoned application is filed explaining why the seizure is excessive or unjustified, or why the circumstances have changed. The registrar then makes the changes, and full ownership rights are restored. In criminal cases, it is important to respond promptly to motions by the prosecution, to initiate a review of the interim measures and, if necessary, to use search and seizure tools when proving the position of the defence or the victim.

Representation by DSA GROUP

Our team supports clients at all stages — from the initial consultation and preparation of procedural documents to participation in hearings and the full trial of a criminal case, as well as in debt cases and cases involving restrictions on property rights. We prepare motions to lift the seizure of property, take part in hearings on imposing or extending restrictions, and defend our clients’ interests in dealings with enforcement officers.

Has your property been seized? Call us right now!