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Real Estate Due Diligence in Czech Republic

Real Estate Due Diligence in Czech Republic

Updated on Wednesday 17th February 2016

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Real-Estate-Due-Diligence-in-Czech-Republic.jpgCzech Republic represents an attractive destination for the purchase of a real estate property. Persons interested in buying an apartment or a house in Czech Republic are advised to perform due real estate diligence procedures on the property, to verify if the settlement is sold in good faith. Due diligence on a real estate property is performed by a team of specialists, who can check the integrity of the building, in the sense that they can verify if the property respects all the regulations imposed by the local authorities. If you want to buy a property in Czech Republic, our team of Czech lawyers can offer you assistance on this process and can help you perform due diligence procedures
 

Due diligence in Czech Republic 

 
If you have found a property in Czech Republic that meets your standards and budget, you should perform due diligence procedures before signing any contracts with the seller. Our lawyers can provide you with assistance on this matter, as the procedure requires the professional help of various specialists, such as attorneys, tax advisors or accountants. 
 
As a general rule, real estate due diligence is carried out for the following: 
 
the legal aspects referring to the property are verified by lawyers in Czech Republic, who can attest if the documents respect the applicable law. Information registered at the Land Registry after 1st of January 1993 is considered to be in good faith; for entries before this date, it is recommended to perform in-depth legal due diligence if you buy a property on land, as the information on the real estate may not be complete. 
the taxation aspects are verified by the local tax advisors;
the technical and environmental aspects of the property are checked by technical advisors. 
 
Real estate due diligence refers to the general state of the building, but also to possible developments that may be carried out on the property, as stipulated by the Czech legislation; our law firm in Czech Republic can provide you with an in-depth presentation on this subject. 

 

Czech legislation for the sale of a property 

 
Any person interested in buying a property can request to perform real estate due diligence procedures on that certain property, but you should know that the Czech legislation stipulates that the seller is obliged to disclose information on the negative aspects of the building. This may refer to any aspect that would decrease the selling price of the property, such as the lack of an adequate construction permit for the building or technical defects. 
 
If the seller does not disclose this information, the buyer can request compensation claims or the annulment of the ownership transfer agreement. 
 
If you need further information on the due diligence in Czech Republic, please contact our Czech law firm for assistance or representation in this matter. 
 

Comments

  • Ivona 2016-02-16

    It is very important to perform due diligence procedures, even if the Czech legislation requires sellers to present the negative aspects of the buildings/apartments. It's always better to be informed by specialists on various aspects related to the sale of a property, as they can provide more reliable information.

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