Are you buying or selling real estate and unsure what to expect?

Buying or selling a property isn’t an everyday event—it’s one of the biggest investments many people make in their lives. This process can be full of emotions, expectations, and also legal and practical pitfalls.

Maybe you’re deciding whether to sell your apartment, buy your dream home, or invest in real estate. You might be wondering: What should I watch out for to ensure the transaction goes smoothly?

How Does the Process Work?

At first glance, it seems simple: find a buyer or seller, agree on the price, sign a contract, exchange money and keys, and that’s it. But reality is often more complex. Even seemingly straightforward deals can face delays, financial losses, or legal challenges that may jeopardize the whole transaction.

Trust, But Verify

For buyers, the process starts when you find a property you like. Your initial excitement should give way to careful consideration. Don’t rely solely on listings or what the seller or agent says. It’s essential to verify the legal and technical condition of the property.

• Legal check: Review the land registry (katastr nemovitostí) to confirm the owner and see if there are liens, easements, executions, or pre-emptive rights attached to the property.
• Be cautious of entries that “should have been removed” but still appear legally binding until officially deleted.
• Technical check: Especially for older homes or apartments, inspect for hidden defects, illegal extensions, electrical issues, or structural problems, all of which affect the value and your decision.

What Does the Seller Do?

While the buyer conducts checks, the seller usually prepares contractual documents. If using a real estate agency, the first step is often signing a reservation agreement to take the property off the market during the ongoing checks.

This reservation agreement may also outline how any identified issues (e.g., unresolved registry entries) will be addressed, typically requiring the seller to resolve them before the purchase contract is signed.

From Agreement to Purchase Contract

Once the terms are agreed, they are formalized in the purchase contract. This document must detail the property description, price, payment terms, handover date, liability for defects, escrow arrangements, and more.

It must also be legally flawless since it’s submitted to the land registry. Any formal errors can delay or block the registration of the new owner, prolonging the process significantly.

Typically, the buyer’s funds are placed in a professional escrow (attorney, notary, or bank) to protect both parties. The seller receives the money only after the buyer is registered as the new owner.

Moving Into Your New Home

After signing and depositing the purchase price in escrow, the buyer submits a registration request to the land registry, which usually processes it within 30 days if there are no issues.

Ownership is officially transferred upon registration, after which the property and utility accounts are handed over. Parties can agree on a different handover timing, for example, if the seller needs to coordinate moving out with another property purchase.

Key Takeaways: What to Watch Out For

• Incomplete or unclear contracts: These can be invalid or risk your rights.
• Legal defects: Easements, liens, or pre-emptive rights can complicate the deal.
• Risks of template contracts: Generic contracts may favor one party and miss crucial specifics.
• Lack of escrow: Direct payment without protection is risky for both buyer and seller.

Why Involve a Lawyer?

A lawyer can:

• Draft or review all contracts (reservation, purchase, escrow agreements).
• Verify the legal status of the property in the land registry.
• Secure the safe handling of the purchase price.
• File and monitor the land registry application.
• Protect you from risks and legal disputes.

Our law firm has extensive experience with real estate transactions. We ensure the process runs smoothly, safely, and in compliance with the law.