How to buy a property in Prague?

Are you thrilled to buy real estate in the Czech Republic, but you are worried about the Czech bureaucracy? This article should help you to get oriented in the process.
1) Find the property you want

For most people, this is the most difficult part, especially in Prague. There are many real estate sites on the internet where you can search for real estate, such as https://www.sreality.cz/ or https://www.reality.cz/. On these sites, real estate agents have their offering, which comes with the provision to the agent.

If you want to avoid paying the provision, try https://www.bezrealitky.cz/, where owners offer directly their properties.

A good property check is recommended. If there is something you miss, Czech law gives a buyer 5 years to raise the claim towards the seller about hidden issues with the real estate (such as leaking walls, rotten roof, etc.).

2) Reservation contract

After you find the perfect real estate, the seller or real estate agent will probably ask you to pay a reservation fee and sign a reservation contract. The fee and the contract shall ensure that you are serious with the deal. In the contract be careful what happens with the fee if a purchase contract is not concluded without your fault.

If you are planning to take a mortgage loan to buy the property, you should precheck with the bank before signing the reservation contract.

3) Purchase contract

Finally, you are signing the purchase contract and you are soon to be the owner. The documentation usually handles attorney or public notary (watch out for real estate price custody – they are not mandatory insured). If the seller proposes the contacts, hiring your own attorney is recommended.

Together with purchase price are usually concluded:
- contract on the price custody,
- application form to the cadastre,
- power of attorney if you are represented by your attorney.

4) Paying the price

Usually, the process of paying the purchase price is as follows:
- attorney or notary public state into the contract on price custody number of his/her special account set up only for this purpose,
- the price is paid to the custody account,
- the application to the cadastre is filed,
- the ownership is transferred,
- attorney or notary public pays the purchase price to the seller.

5) Enjoy your new property!

Don´t forget to sign the handover protocol with the seller with photos of the property.

____
Please be aware that this is only a summary of the process. It might be different in your case depending on the specific circumstances.

If you are thinking about hiring an attorney for buying or selling property, check out my services or write me an e-mail.

Contact me
Mgr. Michaela Garguláková, Czech attorney-in-law
ev. č. ČAK 19584, IČO 09930051
Dukelských hrdinů 567/52, 170 00 Praha 7