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How to conveniently arrange the transfer of an apartment without legal complications?

There are many forms of property transfer. However, many mistakes can be made in each of them. Whichever option you choose, it is advisable to consult a lawyer over the specific wording. We will show you which problems most often block the transfer in practice.

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This is not usually an unsolvable problem, but it is easy to make a small mistake that can make the whole thing worse or longer. Also, in some cases, one does not realise all the implications (fees, taxes). Want to know what to look out for? Then read on.

Small mistakes can block the transfer of a property

We have dealt with the case of Mr. Karl. He downloaded a contract for the transfer of his flat from the internet and thought he could fill it in himself, submit it to the Land Registry and transfer the flat to his son in peace. In the end, however, he preferred to use our services. The land registry returned the contract to him. The transfer was stopped. Moreover, it was not at all clear to Mr. Karl why this had happened.

We found out that he had filled in the “size” box in the model document with the size of the flat. However, the size of the share in the common parts of the house should have been filled in. That was where the dog was buried.

Once this error and a few other inaccuracies that the model contract downloaded from the internet contained were corrected, the attempted transfer could be repeated. This time, everything went without further problems and delays. However, it cost Mr. Karl an unnecessary CZK 2,000 in fees to the cadastral office. However, the damage could have been much higher if the transfer had not taken place at all due to a minor mistake in the contract.

In most cases, if a proposal for entry into the Land Register contains errors, it means that it is rejected and the entire proposal has to be withdrawn and then resubmitted. This wastes valuable time, as it always takes at least 20 days to process the registration and on average around 25 days. Not to mention the aforementioned administrative fee.

Real Estate Purchase or Sale

We provide a complete package of legal services related to real estate sales and purchases, including reservation contracts and escrow services. We will also help you with all tax and land registry issues. Our work is fast and accurate, ensuring a worry-free transaction. You’re also welcome to pay after services are provided.

Tip: Donating a property brings with it a number of questions. How to do everything legally? When to add an easement to the contract, and what happens if the donation has not gone according to plan? Not only these questions can be answered in the following article.

Apartment transfer and foreclosure or insolvency

The seller should assure the buyer directly in the contract that he is not in any foreclosure proceedings, nor, as far as he knows, is there any pending. There is a principle of non-disposal of property associated with foreclosure proceedings. Thus, the transfer might not take place at all and the whole situation could get “stuck”.

The same applies if the seller is in insolvency proceedings. This can be easily verified in the insolvency register on the website of the Ministry of Justice of the Czech Republic.

Debts on the apartment

We recommend that you have the transferor confirm that he/she does not owe anything on the apartment. The management company (or the unit owners’ association) will always prepare such a certificate for him. As a buyer, you will be guaranteed that no such liabilities will be transferred to you after the successful transfer of the apartment.

If a debt does arise, it is advisable to address it directly in the purchase contract. After the transfer it will be difficult. This risk should not be underestimated, as some owners owe up to hundreds of thousands of dollars, which the HOA can start to recover at any time.

There is no reason to take unnecessary risks. We are ready to help you with the purchase contract. Thanks to us, you are always assured of the correctness of the contract.

Download the free e-book 5 tips on how to buy or sell a property without risk and go smoothly through the process of selling or buying a house, flat and land.

Tip: You are buying a flat and you can’t wait for your new home, but the joy is suddenly spoiled by the mention that the flatis in foreclosure… Is it better to stay away from such a purchase, or does it not have to be as bad as it seems at first glance? In a separate article we will tell you how to proceed and what to watch out for.

Encumbrances in rem

When selling a property, easements may not be as common as in the case of a gift, but they can occur. The seller should take into account that these encumbrances may reduce the interest of buyers and also the sale price. Whether it is a third party’s right to use the property for life or a duty to care for it, selling a property with such an encumbrance can be complicated.

Yet it is not impossible. Sometimes we are able to liaise with the other party and find a negotiated solution. It just requires a little creativity and a good knowledge of the law.

Of course, there are also easements that do not affect the sale and its price. These include, for example, the right of way to a common yard or a utility easement for a neighbouring apartment building.

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Real Estate Purchase or Sale

We provide a complete package of legal services related to real estate sales and purchases, including reservation contracts and escrow services. We will also help you with all tax and land registry issues. Our work is fast and accurate, ensuring a worry-free transaction. You’re also welcome to pay after services are provided.

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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