Purchase contract for a garage

JUDr. Ondřej Preuss, Ph.D.
17. July 2024
5 minutes of reading
5 minutes of reading
Real Estate

In city centres, a garage or garage parking is becoming a welcome addition to the apartment you buy. However, parking is nowadays paid for almost in gold. Therefore, it is advisable not to underestimate the purchase contract for a garage and to prepare it so that there will actually be somewhere to park in the end. There are many model garage purchase agreements available on the internet, but beware of their generality and legal shortcomings. You can download a model garage sale agreement for free, but getting the terms right will save you thousands.

Odtah auta při čištění ulice

From law practice: the fees associated with a garage would make it very expensive to buy

The transfer of the garage can be part of the purchase contract for the apartment. However, sometimes it is necessary to buy the garage separately. This was also the case for Mr Jiří. He was buying a flat from a man who also arranged a garage which he rented himself. He said it should not be a problem to transfer it.

However, after a detailed check, we found out that our client would pay a lot of money for the garage, which was also located in a different house than the flat. If you are looking for a contract of sale for a garage, it is worth not just relying on the universal model contract of sale, but having it tailored to your specific situation. This is because the house in question had high fees. As if that were not enough, there was also a “war” between the garage owners and the rest of the residents of the house over the aforementioned fees and renovation costs. Becoming a part of such a situation could have been a revenge for Mr. Jiří, especially when the garage itself cost as much as an apartment in a smaller town.

Mr. Jiří ended up buying a garage right in the backyard of the house next door. It was seemingly even more expensive, but without the need for additional investment. Everything went smoothly and peacefully. And Mr. Jiří can park whenever he wants without any problems.

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What is the difference between a garage and a parking space?

Garage and garage are defined differently, which implies differences in ownership, management and maintenance, as well as other legal requirements. Keep this in mind when entering into a purchase contract for a garage or a purchase contract for a garage.

A garage is a space that is used to park a motor vehicle. It differs from a state garage in that it is spatially bounded and firmly separated from its surroundings. It may be a detached building or a unit. Plain and simple, it is one complete and separate space. Imagine it as a garage in the garden, in the cellar of a family house or as a separate cubicle in that strange oblong building often adorning the outskirts of Czech towns.

A garage, on the other hand, is just a dedicated space that is part of a larger non-residential space used for parking motor vehicles. Imagine it as a space underground under a hypermarket. It differs from a garage in that it is not rigidly separated from its surroundings.

The catch is that, legally speaking, the owner of a garage is usually his or her own boss, whereas the owner of a parking space is often just a co-owner of a large garage. He therefore has to make difficult arrangements with the other co-owners for its management and maintenance. If you still want to get an idea of what such a contract might look like, we have also prepared a downloadable model garage purchase agreement that takes into account common legal situations.

Remember that the devil is in the details. And we have an eye for those. We’ll be happy to help you with your contract of sale too.

Download our free e-book 5 Tips to Buy or Sell Property Risk-Free and walk smoothly through the process of selling or buying a house, condo and land.

Summary

A garage purchase agreement is an important document that should be prepared carefully, as a garage often represents a significant investment – especially in cities where a parking space is valued almost like gold. The garage can be part of the purchase contract for the apartment, or it can be bought separately, and it is in the case of a separate transfer that specific legal and financial circumstances need to be taken into account. A practical example shows that an unexamined transfer can bring unexpected expenses related to fees or bad relations between the owners. There is also a difference between a garage and a carport – a garage is a separate and bounded space, whereas a carport is often just a shared ownership interest without exclusive use. It is important to be aware of these differences when entering into a contract and ideally take legal advice, as the details in the documents can make all the difference to the outcome of the purchase.

Tip for article

Are you planning an extension, garden house or smaller building on your property? Previously, you might have used so-called planning consent. However, this no longer exists. Read about the new and quicker process.

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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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