[BUYING AND SELLING REAL ESTATE IN CZECH REPUBLIC]
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purchasers are residents or non- residents, or which country they come from. However, it is important that the Czech Land Registry recognizes the legal personality of any foreign company or individual. c) Recently many international sanctions were and are still being imposed by the USA and European Union on various entities and individuals. Property transactions with most people and entities subject to sanctions are not allowed in the Czech Republic. Therefore, counterparties must be checked diligently from this perspective and appropriate approach chosen case by case. VII. Acquisitions a) Properties can be acquired by way of an asset deal or a share deal. The legal entities involved in a share deal are mostly organized as limited liability companies or joint stock companies. A. Residential Property Residential property is most often owned by natural persons. Most frequent forms of ownership of residential property by natural persons are: 1. Sole ownership: The owner is
which comprise the community property, but neither is entitled to dispose of the assets independently, i.e., without the consent of the other spouse. Legal entities, however, often own residential property as well. B. Commercial Property Commercial property is usually owned by private legal entities. Joint-stock companies (a.s.) and limited liability companies (s.r.o.) are the most common forms of legal entities used for the purpose of owning real estate (or for any entrepreneurial aim, for that matter) in the Czech Republic. 1. Limited Liability Company – s.r.o. a. Most widely used legal form for corporations. b. Highly flexible, with relatively few obligations. a) Legal Entity a. A legal entity acts autonomously, represented by
executive director(s). Subject to taxation independently of its members (shareholders). and obligations of an s.r.o. exist autonomously from those of the shareholders and the executive directors. rights
the only person authorized to control and dispose of the property in question. 2. Co-ownership: More than one person owns an undivided share of property. Each co-owner is entitled to dispose of their share. 3. Community property: Each of the spouses is entitled to the assets
b. The
b) Formation
a. An s.r.o. is founded by
ILN Real Estate Group – Buying and Selling Real Estate Series
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