The buyer checks for encumbrances on the property
Agency: Cadastral office for Prague-city
In practice, the buyer, or a lawyer on behalf of the buyer, verifies whether the property has any encumbrances on it. Encumbrances are usually checked on-line.
Time and cost: Less than one day (online), CZK 100
A notary certifies the signatures of the transfer agreement
Agency: Notary, cadastral office, matrika, or one of the Czech Point service centers
By law, the transfer agreement does not have to be executed in the form of notarial deed and the signatures of the contractual parties on the transfer agreement do not have to be certified. However, the Cadastral Office must verify (as specified by law) the identity of the parties and manifestation of their will. Therefore, it is useful and common practice to have the signatures certified by a notary. But this can also be done by a civil servant—at a cadastral office, a registrar’s office (matrika), or in one of the Czech Point service centers. The notarization takes place without delay and costs CZK 30 per each signature + 21% VAT.
Time and cost: 1 day, CZK 60 (CZK 30 / signature – 2 signatures needed)
Apply for registration at the Cadastral Office
Agency: Cadastral office for Prague-city
Parties apply for registration at the Cadastral Office either in person or electronically. There is a CZK 1000 lump sum fee payable for the registration into the cadastre. Upon receipt of the application for title registration, the Cadastral Office has 48 hours to issue a seal on the property and inform all the relevant parties. A 20-day stay period starts upon the issuance of the seal. During this 20-day period nothing can be done with the application and no registration can be performed.
Time and cost: 25 days, CZK 1,000 (Registration Fee)
Pay the Real Estate Transfer Tax
Agency: Tax Authority
The Cadastre is responsible for informing the tax authority about the transfer so that they record it and can collect the tax. Registration of the transfer is not conditional upon payment of the tax. The tax rate is 4 % of the higher of the purchase price and the value (as estimated by an expert to be paid by the parties to the transfer agreement). The Tax on Real Estate Acquisition can be paid at the Tax authority, at a commercial bank, or even online. The Tax on Real Estate Acquisition must be paid to the tax authority within 3 months following the month of the registration.
Time and cost: 1 day, CZK 945,123.71 (4% of the property price as Real Estate Transfer Tax)
