Buying a house or an apartment is one of the biggest decisions in life. Find out what to watch out for most — from verifying your financing and the title deed to the handover protocol — and how to prevent losses in the hundreds of thousands.

Buying a house or an apartment is one of the most significant legal and financial decisions in life. However, the transfer of real estate involves a number of documents, checks and official formalities that you should not underestimate. A small mistake or an oversight at some stage of the process can lead not only to unnecessary delays, but in extreme cases also to financial losses in the order of hundreds of thousands of Czech crowns.

First, Verify Your Financing

If you are purchasing the property through a mortgage loan, we strongly recommend that you verify your financing options even before signing the reservation agreement.

Many buyers find themselves in a very difficult situation: they enthusiastically pay the reservation fee and then find out that the bank will not approve their mortgage. Although certain risks can be addressed contractually, the return of the reservation fee upon mortgage rejection is far from automatic. It is always safer to have the loan at least pre-approved.

Before signing the purchase contract, it is essential to verify:

  • ownership relations,
  • mortgages (zástavní práva),
  • easements (věcná břemena),
  • enforcement proceedings (exekuce),
  • other encumbrances on the property.

A thorough check of this information can prevent future disputes and unpleasant surprises.

Watch Out for Land and Building Plot Specifications

Are you buying a building plot? The mere entry of the type of land in the land register does not yet mean that you will be able to carry out the intended construction on it without problems. In addition to the cadastral data, it is therefore necessary to examine in detail the valid municipal spatial plan, the existence of protective zones, any other building restrictions and, of course, the actual availability of utility networks.

Don't Forget the Access Road

A common and very painful problem is access to the property. The fact that you can physically reach the land via a worn path across a neighbouring parcel does not yet mean that you have a legally secured right of access.

Although Czech law knows the institute of the so-called "necessary path" (nezbytná cesta), its establishment is by no means automatic. Each case is assessed by the court individually and very strictly; your petition may ultimately not be granted. Access to the property must be unconditionally resolved before the purchase (for example by an easement or a co-ownership share in the access road).

Review of the Purchase Contract and the Purchase Price Escrow

Once your financing has been approved and the factual and legal status has been verified, you will usually sign the purchase contract, the escrow agreement and, if applicable, the mortgage documentation for the financing bank.

In the purchase contract itself, pay particular attention to:

  • the exact identification of the properties being transferred,
  • the definition of components and accessories,
  • the purchase price and the method of its payment,
  • the handover of the property,
  • liability for defects.

The Handover Protocol Is Not a Formality

When physically taking over the property, we recommend paying maximum attention to the handover protocol. It is not an unnecessary formality. This document often decides whether you will be able to prove the actual condition of the property at handover. All identified defects, damage, exact meter readings (water, electricity, gas) and other important facts must be recorded in the protocol.

When Is a Power of Attorney Needed?

It is not always possible for the buyer or seller to attend in person for the signing of all documents. This often happens when:

  • one of the parties resides abroad for a long time,
  • the signing date clashes with urgent work duties,
  • a participant cannot attend for health reasons,
  • the client is not familiar with legal terminology and wants to entrust the negotiations to his or her lawyer or another trustworthy person.

A power of attorney can be used in these cases to sign the purchase contract, mortgage contracts, to file an application for entry of ownership in the land register, to negotiate with the bank or to receive related documents.

Important Notice

In these cases, an officially verified signature of the principal is usually strictly required for the validity of the acts and a smooth registration in the land register. An improperly or inaccurately drafted power of attorney can cause serious complications during the property transfer or even lead to the rejection of the application by the cadastral office.

📄 Power of Attorney Template for Property Transfer

If you cannot attend the signing of the purchase contract or the filing of the land register application in person, use our ready-made power of attorney template. The signature on the power of attorney must be officially verified.

Download Template (DOCX) All Templates

Frequently Asked Questions (FAQ)

What happens to the paid reservation fee if the bank does not approve my mortgage?

Non-approval of a mortgage does not automatically mean that the reservation fee will be refunded. If this situation is not explicitly and correctly addressed in the reservation agreement, you may lose this money. We therefore strongly recommend verifying your financing options before signing the reservation agreement.

Where and how do I find out that the property I am buying is free of debts or enforcement proceedings?

All essential information about the legal status of the property, including mortgages (e.g. old mortgages), easements and enforcement proceedings, can be found in the title deed (extract from the land register). A thorough review of it before signing the contracts is an absolute must.

The land is registered as building land in the cadastre. Does that mean I can start building on it right away?

Unfortunately, not always. The mere entry of the type of land in the cadastre is not enough. Before buying, it is essential to check the valid municipal spatial plan, the existence of any protective zones and the actual availability of utility networks.

The driveway to the house of my choice only leads across the neighbour's land. Is that a problem?

Yes, it can be a very serious problem. The fact that you actually use the road does not give you a legal title to it. Relying on the court subsequently establishing a so-called "necessary path" does not pay off. Access must be resolved before the purchase, for example by an easement or a co-ownership share in the road.

How can I safely pay hundreds of thousands or millions for a property?

You should never send the purchase price directly to the seller's account before the ownership right has been transferred in the land register. To protect both parties, we always recommend using an independent lawyer's, notary's or bank escrow.

Why is the handover protocol so important when taking over a property?

It is not just a formality. The handover protocol is a key piece of evidence of the actual condition of the property at the time you took it over. Exact meter readings (water, electricity, gas) must be recorded, as well as any defects and damage found, in order to avoid future disputes with the seller.

I cannot attend the signing of the purchase contract in person. How can I solve this?

You can authorise a lawyer or another trustworthy person to sign the purchase and mortgage contracts, file the application for entry in the land register, or negotiate with the bank. You will need a properly executed power of attorney. However, please bear in mind that the signature on this power of attorney must be officially verified, otherwise the cadastral office may reject the application.