Persons interested in purchasing a property in Czech Republic are required to register the property at the Czech State Administration of Land Surveying and Cadastre. The registration process of a Czech property is comprised of several compulsory steps. The future owner can verify various details on the property he/she is interested in buying, which are available for public use. After the ownership transfer is completed, the owner will have to register the new ownership, as stipulated by Czech law. Natural persons and foreign businessmen interested in the process of land registration in Czech Republic can receive legal assistance on this matter from our team of lawyers.
Purchasing a property in Czech Republic
Persons who want to purchase a property in Czech Republic are required to verify if the property presents any type of problems. This action can be performed at the local Land Registry which is required to provide such information. It is important to know that the problems of the property being sold have to be stated in the sale agreement; in order to avoid the purchase of a flawed property, it is highly recommended to performdue diligence procedures, on which our lawyers can provide their expertise.
After the individual has agreed upon a certain property, it is recommended to certify the signatures of the ownership transfer documents, a procedure which is performed by a public notary; our lawyers in Prague can offer legal assistance if you want to buy land in Czech Republic.
Land registration in Czech Republic
In order to register a property in Czech Republic, a person should apply (with a full set of documents) at the local Cadastral Office; the approval of the Cadastral Office can take up to 60 days, according to the Czech legislation, but common practice shows that the procedure lasts approximately 20 days.
Registering at the local Cadastre is done in the following situations:
- owner of material rights;
- lease agreement;
- tenancy contract.
The registration can be performed on-line or it can be intermediated by postal services or by going personally to the local office. Talk to us if you want to buy land in Prague.
Real estate due diligence – is it necessary?
Of course, before buying a property or land it is good to do some checks and make sure that everything is fine from this point of view. Here is broadly what real estate due diligence entails:
- The property or land is inspected by experts. Such a process is recommended before any kind of transaction.
- Land registry in the Czech Republic holds information about all lands and dwellings, and documents can be verified with the help of this institution.
- Real estate due diligence is not just about discovering irregularities in terms of documents. An expert in the field can make an analysis by surroundings, the average value of prices for sale or rent, crime rates, and even median household income levels.
- Taxes imposed on land are checked, if they were paid on time or if their owner has debts.
- The physical inspection in the case of the buildings implies the verification of the structure, of the utilities and more. If there are any issues when purchasing land, then real estate due diligence will involve flood zone certification and a complete environmental report.
Whether you want to buy land in Czech Republic or a property, it is recommended to consider the importance of a real estate due diligence process. Our experts are at your disposal with specialized help so do not hesitate to discuss all these aspects. In addition, our Czech lawyers can draft the documents required for an acquisition.
Why it is important to check the properties with the Czech Land Registry
Checking a property before buying it is normal and even recommended. The Real Estate Cadastre, part of the Land Registry in the Czech Republic provides information about properties and land, the names of the owners, the cadastral area, if there are restrictions or if they were involved in illicit business.
But this type of information costs money, so you should consider a fee in this regard. Moreover, we remind you that our Czech lawyers have experience in this field and can handle the formalities imposed by the Land Registry.
So, if you want to buy land in Czech Republic, do not hesitate to talk to us.
What else can you find out with the help of the Land Registry in Czech Republic?
Real Estate Cadastre can also provide details about the constructions designed on certain lands, if certain houses were built respecting the documentation or if they did not have the necessary approvals. Such issues are important in making the decision to buy land or property in Czech Republic, either as a resident of this country or a Czech citizen.
Verification of the sale-purchase contract with the help of a lawyer
Although the transaction of acquiring land or real estate in the Czech Republic may seem simple, in reality, it is necessary to have legal advice from a lawyer. Because he/she has experience in the field, he/she will know what kind of checks to make, what documents to analyze, and if all the papers are prepared for that transaction.
Normally, there should be no hidden issues or undeclared commissions. However, it is recommended that you leave the purchase contract in the hands of our experienced Czech lawyer.
Payment of land or property in the Czech Republic
Once all the details are established, the transaction will take place and the property will be paid. Foreign citizens who want to buy land in Czech Republic or even real estate are obliged to pay by bank transfer, especially if the transaction exceeds EUR 10,000.
So, if you want to know more about the transaction of real estate or land, do not hesitate to get in touch with our team of specialized lawyers. We can supervise the whole process and we can facilitate the formalities with the Land Registry in the Czech Republic.
Buying land through a loan in Czech Republic
Those interested in buying land in Czech Republic with the help of a bank loan can do so, but there are some formalities that the financial institution imposes. Without a doubt, real estate due diligence is needed to discover if there are legal problems regarding the respective land and its owners.
The loan obligation can be secured with the claims for property mortgage made by the bank. Moreover, if the respective land was also bought with the help of a loan, then supporting documents and the payment of the respective remaining loan are needed to be able to proceed to the new transaction.
Even in cases of land acquisition with the help of a bank loan, specialized legal advice is needed, therefore, we remind you that you can benefit from the support of our Czech lawyers at any time.
A short guide for those who want to buy land in Czech Republic
Below we present a short guide intended to help those who want to buy land in Czech Republic and understand the respective acquisition steps. The advice of a specialist in the field is at hand for those interested in buying land in Prague.
- Choose the property you want to purchase – The first step is to identify the land you want to buy, and a local agency can be useful. If you want to buy land in Prague, get in touch with our experts.
- Checking the zoning plan – with the help of the Real Estate Cadastre in Czech Republic you can check the documentation for the land you want to buy. This institution can provide you with the necessary information and documents, and make sure that you will not have problems, you can be represented by a Czech lawyer.
- Ask if the land is joint property – There are cases in which properties purchased before marriage remain in this status or are not registered with the Czech Land Registry. Such situations can slow down the real estate transaction, which is why specialist advice is needed.
- Request real estate due diligence – Real estate due diligence procedures are also included in the area of necessary checks before the purchase of a plot of land. This type of verification allows the identification of legal problems in which the owners and third parties may be involved. Do not hesitate to ask for this type of service.
- Review the sale and purchase agreement – If you want to buy land in Prague, you must know that the transaction takes place only if a sale-purchase agreement is prepared. This document must contain all the history of the land, how it was purchased before and in whose possession it was and can be checked by a Czech lawyer before signing.
- Payment for the chosen land follows – Payment for land in Czech Republic can be made by bank transfer, especially if the price exceeds EUR 10,000. Once the documents are signed and the respective payment made, the new owner takes possession of the land.
Considering the guide above, you can thus get an idea of how to buy land in Prague, the capital of the Czech Republic. We also emphasize the importance of requesting the services of a Czech lawyer to ensure that the real estate transaction you are interested in will be free of complexities.
Why choose our Czech property lawyers?
We have a team of lawyers who are specialized in real estate issues in the Czech Republic, so you can call on us. Experience in this field is a plus, and we are committed to providing complete and correct legal services for those who want to buy land in Czech Republic and to ensure that they will not encounter legal problems with such a purchase.
The Czech Republic, a good investment option
The Czech Republic is a good business destination in areas such as real estate, technology, engineering, and tourism. The incentives offered by the government, the ease with which a company can register, the experienced workforce, and the possibilities for development in the sectors and industries of interest are some of the strengths that the Czech Republic makes available to foreign investors. Here are some statistics about the Czech economy:
- The estimated GDP for the Czech Republic in 2021 is over USD 276 billion.
- Over 60% of the active population works in the field of services in the Czech Republic.
- Czech exports amounted to around USD 199 billion in 2019.
If you need further information on how to register a property or buy land in Czech Republic, please contact our team of Czech attorneys, who can provide you with assistance on this matter.