[BUYING AND SELLING REAL ESTATE IN CZECH REPUBLIC]
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KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER CZECH LAW I. Types of Real Property Transactions a) Purchase of an undeveloped plot of land;
the realities of the seller’s title to the property, existing mortgages, and possible ongoing proceedings the property may be subject to. The register also contains records called “notices” which convey important information regarding the registered property or its owners or people holding any other rights to the registered property, for instance – information regarding dispossession, ongoing enforcement proceedings, prohibition of disposition, and prohibition on the establishment of a pledge. c) Description of the necessary repairs or other regulations the seller/buyer has to comply with. d) Date when the property was handed over to the buyer or the agreed upon date of transfer of ownership of the property (N.B. the ownership of the property is transferred on the day of registration in the Land Registry retroactively on the day of the filing of the request). e) The conditions of the change of ownership. f) Potential charges on the property. g) A declaration regarding the mandatory municipal permits, such as, for instance, the occupancy permit determining the permitted purpose of the use of the real estate. h) Detailed representations and warranties regarding the current rights and titles to the property; substantial characteristics of the property such as: access thereto, access to utilities (gas, electricity, etc.) i) The Energy Performance Certificate of the building must be obtained by the
b) Purchase of a developed plot of land; c) Purchase of a building (that is not a part of a plot of land); d) Purchase of an apartment; e) Purchase of a right to build; f) Purchase by way of a share deal through a corporation that owns the real estate. Note: The right to build is a right in rem related to a plot of land consisting in a right to have an above ground or underground structure on that plot of land, regardless of whether such a structure has already been built or is yet to be built. Under Czech law, a right to build is as an immovable asset. II. Essential Contents of the Purchase Agreement a) The contracting parties, as well as the purchase price and the payment terms. b) Exact description of the real estate, i.e., the land, any fixtures and fittings of the building or apartment and existing appurtenances, easements, pledges, etc. Czech law expressly prescribes how the land and buildings ought to be described in order to be successfully included in the Land Registry. The Land Registry contains all of the necessary components of the description required for the registration; it is thus advisable to extract the required information therefrom. Note: A thorough review of the information lodged with the Land Registry is of major importance when gathering information on
ILN Real Estate Group – Buying and Selling Real Estate Series
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