How Buying Property Works in the Czech Republic

Reservation Agreement

Most purchases start with a reservation agreement, where the buyer pays a reservation fee to take the property off the market while the purchase contract and financing are arranged. Check what happens to this fee if the deal falls through before signing.

Purchase Contract and Escrow

The purchase price is typically held in escrow (by a lawyer, notary or bank) and released to the seller only once the transfer is registered — this protects both sides against paying or handing over the property too early.

Land Registry Entry

Ownership only transfers once the change is entered in the Land Registry (katastr nemovitostí). The process takes roughly three weeks and, until it's complete, the seller technically remains the legal owner.

Financing and Mortgage

If you're financing the purchase with a mortgage, the bank will usually require its own valuation and will register a lien on the property. Build enough time into the timeline for mortgage approval before committing to a fixed closing date.

Common Mistakes

• •Signing the purchase contract before the reservation fee terms are clear.
• •Skipping a title/encumbrance check on the property before paying anything.
• •Underestimating the timeline for mortgage approval and land registry entry.
• •Not using escrow, leaving one side exposed if the deal falls apart.

When to Contact a Lawyer

Involve a real-estate lawyer before signing the reservation agreement, not after — they'll review the contract, arrange proper escrow, and check the property's title and any encumbrances at the land registry.

Frequently asked questions