ILN: Buying and Selling Real Estate - An International Guide

[BUYING AND SELLING REAL ESTATE IN CZECH REPUBLIC]

110

EUR 100. X. Examinations before closing

a) The buyer is advised to check the title to the property for any potential or actual deficiencies and the financial condition of the seller as well. b) Commercial buyers should also check if there are any planning restrictions imposed upon the property, since a construction or alteration as well as change in use or the demolition of a building requires a building permit. The building project has to comply with the content of the local (or regional, as the case may be) development plans. Therefore, with regard to prospective plans of construction, the development and land use should be reviewed very carefully before the closing of the contract. c) In addition to this, environmental issues should be checked before closing too. d) A thorough check of the counterparty background has become necessary recently due to proliferation of various sanctions imposed by mainly the USA and EU. Note: It is highly recommended to undertake a due diligence review before the closing of the contract.

ILN Real Estate Group – Buying and Selling Real Estate Series

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