Buying Property in Czechia

In this article, our colleague from Gurcan Partners Czech Republic, Att. Matěj Grödl will mention Buying Property in Czechia. Which steps must be taken? What are the differences in the process for foreigners? Property Investment in Czech Republic

Buying Property in Czechia

The process of buying a property in the Czech Republic is relatively simple in terms of its administration before the Land Register and it lasts usually around one month to process it from the day of filing an application to the Cadastral Office.

However, prior to buying property in Czechia, it is always advisable to perform legal due diligence of the property, in order to avoid any unexpected defects that could be associated with it.

Since real estate has usually high monetary value, it is important to be aware of some crucial aspects that may save you from many troubles – provided you are well informed. With a new Civil Code effective in the Czech Republic as of 1 January 2014, all buildings are now considered to be an inseparable part of land and therefore buildings are no longer transferred in the Land Register individually (as separate pieces of property), but only as part of the land at which they are built.

Due Diligence of the property is quite important to proceed to buy property in Czechia. Gurcan Partners International Law Firm’s professional team is ready to assist you during all process to property purchase in the Czech Republic.

Please contact us.

We will back to you within 24 hours.

@: info@gurcanpartners.com

Or Call Us

+420 2 347 17 54 (English)

Purchase of Real Estate in the Czech Republic

Pursuant to the Czech Civil Code, the acquisition title (e.g. a purchase agreement) for the transfer of real estate requires a written form. Furthermore, in order for the transfer of ownership to be successfully carried out, it is necessary to dully register the change in the Land Register.

Registration of the transfer of ownership in the Land Register is performed on the basis of filing an application to the relevant Cadastral Office and paying an administrative fee.

In addition to the aforementioned written form requirement, the acquisition title (such as the purchase agreement) must also comply with other statutory requirements. The agreement must, among others, encompass a correct identification of the transferred property, as well as the transferor’s explicit obligation to hand over the property to the transferee and to allow him to acquire its ownership.

Furthermore, the agreement must also encompass an explicit obligation of the transferee to accept the ownership and to pay the agreed-upon purchase price – unless the property is being donated free of charge.

The proceedings before the Cadastral Office usually last for approximately 1 month, mainly because the authorities must inform the current owners that the property is affected by an ownership change prior to performing the transfer and provide for a sufficient period of time before the transfer can be performed. This statutory period is set by the law for 21 days.

Proceedings Before the Cadastral Office

The application for the real-estate transfer into the Land Register has to be filed using a standard form, to which the relevant acquisition title is attached in a written form with officially certified signatures. The application, which is filed to the Cadastral Office must meet all of the requirements prescribed Cadastral Act.

If all of the conditions necessary for the transfer of the ownership right to the Land Register are fulfilled, the Cadastral Office shall perform the transfer backward – as to the day of filing the application to the Cadastral Office. As already mentioned above, the proceedings before the Cadastral Office are covered by the official fee.

Gurcan Consultancy provides tax advising and accounting services in the Czech Republic. To get to know about property taxes in the Czech Republic, please contact us via mail.

We will back to you within 24 hours.

@: info@gurcanpartners.com

Or Call Us

+420 2 347 17 54 (English)

Before transferring or buying property in Czechia, it is always crucial to make sure that the transferor is the rightful owner of the property and is therefore capable of dully transferring the ownership to the new owner.

It is also important to thoroughly verify that the transferred property is free of any easement or collateral, whether the owner of the property is not subject to any insolvency or enforcement proceedings etc.

These aspects should always be thoroughly verified by way of performing legal due diligence of the property prior to its purchase, in order to avoid any undesirable surprises. After a successful transfer of the ownership to the property in the Land Register, it is also necessary to pay tax from the acquisition of the property unless it is being transferred for free.

Conclusion

Real estate transfers in the Czech Republic are relatively straight forward and usually do not require a substantial amount time and money, even though it is always advisable to perform a due diligence of the property and use an experienced attorney for the preparation of the relevant transfer agreement, in order to minimize any potential risks and threats associated with the transfer and make the whole process as smooth as possible. Especially in case, the property is highly valuable and any defect in the process could result in substantial losses.

Especially second-hand houses may have several hidden legal problems. One other point is the preparation of the purchase contract. Having a lawyer during the procedure of buying property in Czechia is the safest way. Our professional team is ready to help you during all procedure of buying real estate in Czech Republic. Please contact us.

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To read our other articles:

1. Company Formation in the Czech Republic
2. Mergers and Acquisition in the Czech Republic
3. Doing Business in Czech Republic
4. Company Formation in Germany
5. Buying Property in Hungary
6. Buying Property in Turkey
7. Buying Property in Estonia
8. Real Estate Investments in Germany

Buying Property in Czechia

Mgr. BSc. Matěj Grödl /Attorney

Gurcan Partners Prague Office

Address: Stroupeznickeho 2324/150 00 Prague 5. Prague / Czech Republic

Phone:

P: + 420 2 347 17 54

@: info@gurcanpartners.com

All rights reserved. All rights of Buying Property in Czechia article belong to Gurcan Partners. The author has no responsibilities from the information in this article. This article is prepared just to inform.

Property Investment in Czech Republic

Buying Propety in Czechia

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