Purchase on Approval of Real Estate – How the One-Year Trial Works
Imagine buying a family house for several million. You worry that once you move in, problems may appear – poor heating, damp walls, or an inconvenient layout. The Czech Civil Code recognizes purchase on approval, which also applies to real estate. The buyer may use the property for a certain period and only then confirm whether to accept it.
This article is part of the Main Purchase Agreement Hub, where you’ll find all core articles on this topic.
You Might Be Thinking…
“This doesn’t sound realistic – who would buy a house with a one-year trial?”
True, in practice this institute is rare for real estate. But legally it is possible, and in some cases it may make sense – for example, in a developer project where the buyer wants assurance that the property will meet parameters and be habitable.
Clients Often Ask Me…
How long can I try out a house or apartment?
Do I have to pay the purchase price immediately, or only after approval?
How is this different from a warranty for defects?
What if problems appear during the trial period?
How do you legally handle the return of the property?
Legal Framework in Brief
Section 2150 Civil Code: The purchase agreement is subject to the condition that the buyer approves the property.
Section 2151 Civil Code: If the parties do not set a trial period, it is 1 year for real estate.
Suspensive condition: If the buyer does not take possession, the contract becomes effective only upon approval.
Resolutive condition: If the buyer takes possession, the contract is immediately effective but may be canceled by rejecting the property within the period.
How It Would Work in Practice
1. Taking Possession of the Property
If the buyer takes possession, the contract is valid immediately.
But the buyer may still reject the property during the trial period, canceling the contract.
2. Trial Period
The statutory period is 1 year, unless the parties agree otherwise.
This gives enough time to verify the technical condition and living comfort.
3. Financial Settlement
Typically, the purchase price is placed in escrow.
If the buyer approves, the price is released to the seller.
If the buyer rejects, the money returns to the buyer and the property to the seller.
Risks and Common Mistakes
Unclear rules of use → who pays utilities and running costs during the trial?
Unresolved financing → what happens to a mortgage if the buyer rejects?
No handover protocol → disputes about whether the buyer damaged the property.
Confusion with warranty → this is not about defects, but the right to reject even a defect-free property.
Lawyer’s Checklist
✔ Draft a handover protocol recording the property’s condition.
✔ Specify who covers costs during the trial.
✔ Arrange how the purchase price will be handled (escrow recommended).
✔ Define conditions for returning the property if rejected.
FAQ
Can I rent the property out during the trial?
Only if explicitly agreed; otherwise, you risk breaching the contract.
Do I pay property tax during the trial?
No, only once you become the owner – after final approval.
Is this used in practice?
Rarely. But it is legally possible and may be useful in specific situations (developer projects, unusual properties).
How I Can Help
Draft a purchase-on-approval agreement even for real estate.
Set conditions for financing and escrow.
Protect both sides from legal disputes.
- Publikováno:
- Naposledy aktualizováno: 08/09/2025
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Purchase on Approval of Real Estate – How the One-Year Trial Works
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