A buyer’s money is protected from all discreditable practices in any real estate transaction under the Czech law. A fraud is not possible.
Having selected real estate, having checked out the photos of this new property or having inspected the property in person, the buyer and seller sign a sales agreement. The agreement is then registered in the Czech Real Estate Cadaster. The buyer transfers money to any savings account of any Czech bank and waits for the entry in the Real Estate Cadaster to be made; after the entry has been made, the buyer becomes the owner of that property. Throughout this period, the buyer still has an opportunity to point out any fault he/she has found with the property or with the contract itself.
Only with the full consent of the buyer for the purchase of real estate, the Czech Cadaster will legalize the transaction and, in addition, send him/her the certified confirmation of the fact that the buyer has taken the possession of real estate and also initiate the transfer of money from the buyer’s savings account to the seller’s account.
From the moment the sales contract is signed until the entry in the Real Estate Cadaster is made and all ownership rights are transferred to the new owner, 14 days pass.
Before buying real estate in the Czech Republic no matter whether it is a flat, a house, or a commercial property, it is important to remember that the buyer can get real estate not only as a private owner, but also can buy it with friends and family (each contributes a share). The shares of the buyers of the property will be specified in the sales contract and included in the Real Estate Cadaster entry.
Having bought the property, the owner can make it his/her legitimate residence. In this case, when selling the property in two years, the owner will not to pay an income tax. A tax exemption can also happen if the owner decides not to make this property his/her legal residence and sells the property in 5 years.