You Might Be Thinking…

“Why so many formalities? Isn’t it enough to agree, pay, and hand over the keys?”
Not quite. Transferring real estate is not like buying bread. Without a written contract, precise specification, and registration in the Land Register, ownership does not transfer. And worse – if you pay too early without security, you could lose both the money and the property.

Clients Often Ask Me…

• Does the contract always have to be in writing?

• When should I pay the purchase price?

• Is lawyer’s or notary’s escrow mandatory?

• How long does the Land Register process take?

• What happens if the Land Register rejects the filing?

Step 1: Agreement on Price and Terms

Before drafting anything, clarify:

• the purchase price, method, and deadline for payment,

• exactly what is being sold (house, apartment, plots, garage, co-ownership shares),

• who pays costs of the Land Register filing, property tax, and fees,

• the date of handover.

Step 2: Drafting the Purchase Agreement

Under the Civil Code, a written contract is mandatory for real estate transfers. The contract must contain:

• exact identification of the parties,

• precise description of the property according to the Land Register (parcel numbers, unit number, cadastral area),

• purchase price and method of payment,

• provisions on handover and transfer of ownership.

A single wrong parcel number may cause the Land Register to reject the filing.

Step 3: Lawyer’s or Notary’s Escrow

Never pay the full purchase price upfront without security. Escrow protects both parties:

• the buyer knows the money will only be released after registration,

• the seller knows the buyer has actually deposited the funds.

Escrow can be handled by a lawyer, notary, or bank. Lawyer’s escrow is most common due to lower costs and faster processing.

Step 4: Filing with the Land Register

Together with the purchase agreement, a filing application is submitted. The administrative fee is CZK 2,000.
The Land Register has 30 days to decide, or 60 in complex cases. If the filing contains errors, proceedings are delayed or even terminated.

Step 5: Handover of the Property and Transfer of Ownership

Ownership transfers only upon registration in the Land Register. Only then are funds from escrow released to the seller.
Afterwards comes the physical handover of the property – handover protocol, keys, and transfer of utilities.

Common Mistakes

• Wrong parcel number – Land Register rejects the filing.

• Payment without escrow – the buyer loses the money.

• Unresolved easement – the buyer acquires a property burdened by third-party rights.

• Non-verified signatures – the Land Register will not accept the contract.

Examples from Practice

• A client paid a deposit of CZK 500,000 directly to the seller’s account. The seller ended up in enforcement proceedings and the money was seized – the buyer lost everything.

• Another client used lawyer’s escrow – the Land Register extended the process due to a document error, but the money was safely held until the issue was resolved.

Why Be Careful with DIY Templates

“Real estate purchase agreement template free” may save you a few minutes but could cost you hundreds of thousands. Templates often lack mandatory elements, don’t reflect specifics of the property, and are rarely up to date with current case law.

Lawyer’s Recommendation

• Never sign a contract without review.

• Always use escrow.

• Double-check the exact property identification.

• Ensure a proper handover protocol.

Checklist for a Safe Transfer

✔ written contract
✔ correct identification of parties and property
✔ clear price and payment terms
✔ lawyer’s/notary’s escrow
✔ filing with the Land Register
✔ handover protocol

FAQ

How much is the Land Register fee?
CZK 2,000.

Do signatures have to be verified?
Yes, the Land Register won’t accept the contract otherwise.

What if the Land Register rejects the filing?
You can submit a new filing or remedies, but the process is delayed and may cause financial loss.