Buying a new-build flat in Prague: how developer sales work

In a resale, you buy what you can see. In a developer sale, you often buy a floor plan, a price list and a promise. The building may be at the permit stage, a hole in the ground or half-finished. Czech practice has developed a standard sequence for this, and understanding it is the best defence against the expensive surprises.

This guide explains the sequence, the documents, and the questions to put to the developer and your own lawyer. It does not describe any particular project or developer, and it is not an assessment of anyone's reliability.

The sequence in outline

Most developer sales follow the same four stages, with variations.

1. Choice and reservation. You choose a unit from the price list and sign a reservation agreement with a deposit.
2. Contract on a future contract. You sign a smlouva o smlouvě budoucí kupní, in which both sides commit to conclude the final purchase contract once the building is complete.
3. Construction and staged payments. You pay in instalments, according to the schedule in the contract. Our explainer on developer payment schedules goes into detail.
4. Completion, final contract and registration. After the building is approved for use, you sign the final purchase contract, pay the balance, and the transfer is registered in the cadastre.

Some developers skip the middle document and sign a purchase contract straight away, with the transfer timed for completion. The logic for the buyer is the same: money goes out before ownership comes in.

Reservation

A reservation takes the unit off the market for a short period. The deposit is usually modest in comparison with the price, and the agreement should say when it is refunded, when it is kept and what happens if your mortgage is refused. Read the refund clause first. A reservation tied to the approval of your loan is far safer than one that is not. Our article on reservation agreements and escrow lists the main terms.

Ask for the whole contract package at the reservation stage, not only the reservation form, so that you can have it reviewed before you commit.

The contract on a future contract

This is the central document. It binds the developer to sell and you to buy a defined unit at a stated price once the building is ready. It should specify:

• the unit, its floor area, its share of common parts and the parking or storage included;
• the price and how it is paid, in what stages and into which account;
• the planned completion and handover dates, and what counts as a delay;
• the technical specification and finishes, referring to attached plans;
• the penalties and the right to withdraw for either side;
• how the developer will handle the unit declaration and the owners' association.

Do not accept a vague "standard specification". Ask for the list of materials, appliances and finishes as a schedule to the contract. What the brochure shows and what the contract promises can differ, and the contract is what counts.

Where the money sits

Because you pay before you own, the arrangement for the money matters. Common structures include:

• Escrow with a notary, a lawyer or a bank, released when the developer reaches defined stages or when the registry acts;
• Payment directly to the developer's account against milestones such as the foundation, the roof, the facade and completion;
• a mix, with a smaller sum direct and the balance in escrow.

Escrow does not remove all risk, but it separates your money from the developer's day-to-day cash. Ask who the escrow agent is, what conditions release each payment and who decides when a condition is met. Our piece on notaries, lawyers and escrow describes the roles.

Czechia has no dedicated law protecting buyers' advance payments to developers, of the kind Poland has adopted; protection rests on the Civil Code and on what the contract says (as of 2026; check the Ministry for Regional Development for any bill). Ask your lawyer which protections your contract actually gives you.

Checks on the developer and the project

Before you sign, a lawyer can check public sources:

• the cadastre, to see who owns the land, whether it carries mortgages or other burdens, and what the lender over the project requires;
• the commercial register, for the developer's company, its owners and its accounts, which public registers make available;
• the building permit and the status of the planning, to see whether the project can go ahead as described;
• the unit declaration (prohlášení vlastníka) once it is registered, because it defines your unit.

If the developer's finance depends on a bank loan, the bank may have a lien on the land and will release it unit by unit when buyers pay. Ask how that works in your contract, because the release should be linked to your payment. Our piece on Czech property legal checks lists these searches.

Our overview of where Prague's main new developments are shows the districts. You can browse property developers active in Prague (in Czech) for a list of names to research, and new-build flats for sale in Prague (in Czech) to see what is on the market. A directory is a starting point, not a recommendation or a check.

Approval and the final contract

When the building is finished, it must be approved for use (kolaudace). The new Building Act (zákon č. 283/2021 Sb.) took effect in stages during 2024 and has been amended several times since, with digital permitting still being phased in, so which procedure applies depends on when the project was permitted (as of 2026; check the Ministry for Regional Development). Only then can the units be handed over and the final purchase contract concluded.

The final contract completes the sale. Its content should follow the earlier contract. If it differs in price, area or finish, ask why before you sign. The measured floor area can differ slightly from the planned one, and the price clause should explain whether and how that changes what you pay.

The application for entry is filed with the cadastre, and the transfer takes effect on entry, from the day the application arrived. The balance of the price is normally released from escrow once that has happened.

Handover

The handover is a formal inspection and a protocol. Do not sign it until you have walked through the flat with a checklist, noted the defects and read the meters. The five-year period for raising hidden defects runs from taking over the flat, so the date matters. Our guide to new-build handover covers the checklist, and the explainer on new-build warranty covers your rights afterwards.

What to ask before you sign

A short list for your lawyer and the developer:

• What exactly is the unit, and where is it described?
• What stages are the payments linked to, and who certifies them?
• What if the building is late, or the project stops?
• What happens to my payments if the developer becomes insolvent?
• What is the warranty, and who gives it?
• If I cannot get my mortgage, what do I get back?

Insist on written answers. A developer with a good project will not mind.

Frequently asked questions

Frequently asked questions

What is a contract on a future contract?

A smlouva o smlouvě budoucí kupní is an agreement to conclude the final purchase contract once the building is complete. It fixes the unit, the price and the payment terms in advance.

When do I become the owner?

When the cadastre enters the transfer, effective from the day the application arrived.

Can I withdraw if I do not get a mortgage?

Only if the contract says so. Make sure the reservation and the contract give a clear exit if the loan is refused.

Who should check the contract?

A lawyer who acts for you, not for the developer.

Last step

Print the draft contract, circle every date and every sum, and give the copy to a lawyer who does not work for the developer. Ask them to explain each circled item in plain English before you sign anything but the reservation.

This is a general explainer, not legal, tax or mortgage advice.