In addition to purchasing state-owned properties, Czechia nationals may purchase any kind of property here. Presenting their passport as proof of identity enables EU residents to buy property in the Czech Republic. Before, non-EU residents in the Czech Republic could only acquire property through marriage to a citizen or with a permanent stay visa. Now, all property types are open for foreign buyers, allowing anyone to purchase land or homes without limitations.
Czechia notaries and real estate agents
A realtor’s involvement is optional, but the notary is essential, as they ensure the transaction’s integrity and serve as a guarantee for the process. They will verify the validity of each signed document, examine the buyer’s ownership information, and ensure that the appropriate entry is made in the real estate cadaster. A notary public may be used to settle the transaction. The funds are sent in this instance to the notary’s bank account.
How to purchase a real estate property in the Czech Republic
Here is the guide to purchasing a property in Czechia:
Reservation
In actuality, oral reservations often last a few days, not more than two weeks. The buyer and their representative investigate the object’s legal standing during that period. They specifically need an excerpt from the Real Estate Cadaster. The deed includes owner details, ownership dates, purchase-sale agreement specifics, and mortgage status. The Czech-signed reserve deposit agreement involves a buyer paying up to 5% of the property’s value. Foreigners can send funds from their home country; later, a local account might be necessary for rent and utilities, a straightforward process taking under an hour. You may apply at any Czech bank if you are a foreigner.
The contract for the selling and purchase
It is not essential to reach a preliminary understanding unless the buyer so desires. After the purchaser pays the reservation fee, the preliminary contract is signed. Notarization isn’t required. The document outlines parties, payments, deadlines, and responsibilities. A deposit agreement for money safekeeping is made upon signing an item reservation or preliminary agreement. The order of money transfers is decided by it. The money will be maintained in a separate trust or escrow account, and it won’t be possible to transfer it to the seller’s account until after the ownership has been renewed. A bank, real estate company, notary public, or lawyer are all examples of potential custodians for deposits. The purchaser deposits funds into the deposit account after the completion of this Agreement.
The payment exchange
Real estate is often paid in Czech crowns (99% of the time). In the Czechia, bank transfers from personal or trust accounts are the acceptable payment option. Cash may be imported into the Czech Republic for a minor sum (for a deposit and ongoing expenditures). Remember that there are limits on how much money may be used for export.
The registration of ownership
After the primary contract of sale is completed, the agent creates an application for the transfer of ownership. The Real Estate Cadaster receives both papers. On the Cadaster website, you may determine the object’s status. Funds from the trust account are released to the seller upon receipt of a cadaster-stamped purchase and sale agreement and registration confirmation by the new owner. Utility contracts are then issued in the new owner’s name. Additionally, his agent may support the buyer in this.
Whether a property is bought outright or with a mortgage determines the transaction duration. In the first instance, the process takes 3–4 days, not including the time needed to check the items before the purchase and for state registration after it. Since the bank must review the application, buying a property with a mortgage takes longer (up to 1.5 months).
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