The Czech flat purchase contract: the clauses that decide the deal

A Czech purchase contract is two documents in one. For the parties it is the deal. For the land registry it is the legal title that justifies putting a new name in the register. A clause that works between buyer and seller can still fail the second test, and a contract that fails it is, for practical purposes, not yet a sale.

That double life explains most of the advice that follows. Anything a registry clerk will read has to be exact, complete and in the right form. Anything the parties care about but the registry does not need, such as the date of the handover, has to be written clearly enough to enforce between themselves.

Form and parties

A contract for the sale of real estate (kupní smlouva) must be in writing and signed by both sides. Signatures are normally officially verified, which a notary or a Czech POINT desk can do. A contract that misses the required form is invalid, however clearly the parties agreed.

It names buyer and seller with full names, dates of birth or company numbers, and addresses. If there are several buyers it should state their shares. If the seller is married and the flat belongs to both spouses, check that the right people sign. A spouse's missing signature is the sort of defect nobody notices until the registry does.

Describing the property

This is the most mechanical part and the most important. A flat in an apartment block is a unit (jednotka), registered as a separate object, and it carries a share of the land under the building and of the common parts such as the stairwell, the roof and the structure. The contract must give the unit number, the building, the cadastral area, the parcel numbers and the size of the share. Copy these from the current cadastre record, not from an old advert, and certainly not from the broker's brochure.

Say what goes with the flat if it is not part of it: a cellar, a garage space, a parking place. Sometimes these are separate units, and then they need their own description. A buyer who assumes the cellar comes with the flat, when it is a separate unit owned by someone else, finds out the hard way.

Price and payment

State the price as an exact sum and say how and when it is paid. This is where the escrow arrangement is written in, commonly with the price paid into escrow and released after registration, though the mechanics are for the parties to agree. The price in the contract should be the price actually paid. A lower figure on paper creates problems for both sides, from the buyer's later resale to the seller's own tax position, and it can put the whole contract in doubt.

The seller's statements

A seller usually declares that they are the owner, that the property is free of debts, liens and third-party rights except those named, and that nobody lives there unknown to the buyer. If a mortgage is to be repaid from the price, the contract should say how and when the lender releases its claim.

These statements are the buyer's main route to a remedy if something proves wrong. They sit beside the checks and do not replace them. A seller can declare anything; the ownership sheet shows what is true. Compare them before you sign.

Condition and known defects

The parties can describe the condition of the flat in detail, and it is common to record what the buyer was shown and accepts, including known defects. A buyer who wants a repair done before handover should write it in with a date. Verbal promises do not travel with the file, and a broker who is no longer on the case cannot confirm what was said at the viewing.

Handover and costs

The contract fixes the handover date and deals with utilities, keys and any furnishings. It should say who pays the registry fee and the broker's commission. Custom varies, so do not rely on it. If furniture or a kitchen is included, list it, because "the kitchen" means different things to different people.

Registration clauses

Contracts for real estate nearly always include a clause in which the parties agree to file for registration and cooperate, often naming who files and who pays the fee. Check that it matches the escrow terms, particularly any deadline. A common slip is a release condition that depends on a registry decision, together with a deadline shorter than the registry usually needs.

Language

If you do not read Czech, the temptation is to rely on a friendly translation from the broker. A translation is helpful, but it is not what is filed, and the broker usually acts for the seller. Ask a lawyer who is working for you to compare both texts line by line, and keep a copy of the signed Czech original.

Reading a draft

Go through it in this order: names, property description, price and payment, the seller's statements, handover date, costs, registration clause. If it is a broker's template, ask what has been changed for your case, and why. A template is made to work for many deals, and yours is only one.

Frequently asked questions

Does the contract have to be in writing?

Yes. A contract for the sale of real estate must be in writing and signed by both sides. Signatures are normally officially verified.

Can the contract be bilingual?

Yes, but the Czech text is what the registry reads, and the contract should say which version prevails if they differ.

What happens if the unit is described wrongly?

A wrong parcel number or unit number can stall the filing, so copy every identifier from the current cadastre record.

Who pays the registry fee and the broker?

The contract should say so. Custom varies, so do not rely on it.

The seven-minute test

A reader with no legal training can still run a useful check in a short sitting. Take the draft and the current ownership sheet side by side. Tick off each identifier in the contract against the sheet: the cadastral area, the parcel numbers, the unit number, the size of the share. Then read the price and payment clause and ask who touches the money and when. Then read the seller's statements and ask which of them you could verify from a public record. If any of these steps produces a mismatch or a blank, you have your list of questions for the lawyer, and you have it before paying anything.

What a lawyer adds

It is fair to ask why a careful buyer needs a lawyer if the checks are mechanical. The answer is judgement. A lawyer knows which defects the cadastral office tolerates and which it does not, which wording on escrow release works in practice, and which of the seller's statements deserve a penalty clause behind them. A lawyer can also say no to a broker's template on your behalf, which is harder to do yourself in a room where everyone else wants to finish. The fee buys speed and a second pair of eyes, and the contract is the document where both matter most.

A first step

Ask for the draft several days before signing and compare every number in it with the current ownership record from the Cadastre. Take the marked-up copy to a Czech lawyer and ask whether the registry will accept it.

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