Shrnutí: Selling an apartment in 2026 requires, above all, a review of the property’s legal status, a properly drafted reservation and purchase agreement, secure escrow of the purchase price, and a flawless application for registration in the land registry. For an apartment encumbered by a mortgage, foreclosure, or an easement, it is necessary to time the individual steps of the transfer correctly. The seller should also verify whether the income from the sale is tax-exempt.
Are you selling an apartment and want to make sure that the contracts, the escrow arrangement, and the title transfer are all properly coordinated? We can review the entire transaction from a legal perspective and prepare it in a way that protects both your money and the property itself.
The first step to consider is whether to enlist the help of a real estate agency to sell your apartment. On the one hand, a real estate agency can help you set the right market price for your apartment, ensure a high-quality presentation through professional photos or 3D tours, and reach a wide range of potential buyers through listings on specialized portals. Another major advantage is the provision of legal services, including the preparation of contracts, verification of the property’s legal status, and handling matters with the land registry office. A real estate agency will thus save you a lot of time by taking on a large portion of these responsibilities.
On the other hand, a significant disadvantage of working with a real estate agency is the need to pay a commission, which is typically 3–6% of the property’s purchase price. In addition, you’ll lose some control over the sales process, as the agency decides how to present the property and negotiate with potential buyers. Furthermore, the quality of service varies significantly from one agency to another, and if you’re unlucky in your choice, you could end up paying a heavy price.
The choice between selling through a real estate agency and selling on your own therefore depends primarily on your preferences, the time you have available, and your willingness to invest in professional services. However, whichever path you decide to take, the information in this article will certainly come in handy.
When deciding how to set the price of an apartment for sale, it’s not enough to rely solely on the prices of similar listings on real estate websites. These show asking prices, not necessarily the actual sale prices. Factors such as location, the condition of the apartment and the building, the floor plan, the floor level, elevator access, a balcony, parking, and the legal status of the property all play a role. Setting the price too high can unnecessarily prolong the sale, while undervaluing the property results in a direct financial loss for the seller.
We’ve discussed in detailthe process of selling a property without a real estate agent and the pitfalls involved in our article.
Download a sample apartment purchase agreement drafted by attorneys.
We’ll now go over the individual steps involved in selling an apartment and add some tips based on our experience.
Contracts are the foundation of success (not only) when selling real estate. Never rely on a “handshake deal,” and always insist on carefully addressing every detail in the contract. You need to think of absolutely everything in the contracts. But let’s take it one step at a time.
When a seller finds a serious buyer, signing a reservation agreement for the property has become standard practice today. This gives the seller the assurance that the buyer won’t simply change their mind about the purchase, and—with a properly drafted contract—the buyer has the assurance that the seller won’t sell their dream apartment to someone else. And if they do, the party who did not breach the contract is entitled to a pre-agreed contractual penalty to compensate for their time and, if applicable, financial costs.
Read the story of our client and his apartment lease agreement.
Before signing, always make sure that the following points are clearly defined in the contract:
Unless any serious circumstances arise that would otherwise prevent the sale of the apartment, the reservation agreement is followed by the actual purchase agreement for the apartment.
This contract should, in turn, contain all information regarding the parties and the property. In addition, it should include a clause regarding the handover of the property, or a so-called handover protocol.
An advantage for many sellers is the elimination of the right of first refusal, which previously had a negative impact on, among other things, the sale of apartments with parking spaces or basement storage units held in common ownership.
Whether you’re dealing with complex financing, selling an apartment subject to foreclosure or encumbered by an easement, or simply want to ensure that everything is in perfect legal order, let us handle all contractual and legal services related to the sale or purchase of an apartment. We can have everything ready for you within 48 hours.
I want a guarantee that everything will go smoothly
This is one of the most important matters that should be resolved before signing the purchase agreement for an apartment. The purchase price is placed in escrow before the transfer of ownership of the apartment. This protects the seller from a situation where the transfer of ownership might be recorded in the land registry, but the buyer refuses to pay. However, the buyer also benefits from the escrow of the purchase price. For example, if the Land Registry were to reject the transfer and the buyer were not registered as the new owner of the apartment, the money would be returned from escrow to the buyer’s account.
1. Escrow held by an attorney —by law, every attorney must have professional liability insurance with a minimum coverage of 7,500,000 CZK. The terms of a lawyer’s escrow are strictly governed by regulations, under which a separate bank account—separate from the lawyer’s personal assets—is established for each escrow, and everything is registered with the Czech Bar Association in the Electronic Escrow Register. A major advantage of attorney escrow is that your lawyer can assist you throughout the entire process of selling your apartment. They will draft all necessary contracts, review the loan agreement, verify the legal status of the apartment, and handle the escrow of the purchase price.
Through the “Dostupný advokát” program, we are insured for 50,000,000 CZK.
2. Notarial escrow – just as with attorneys, notaries are also required to carry professional liability insurance. The terms are nearly identical to those in the previous case; however, notarial escrow tends to be more expensive on average and less flexible. The escrow fee is usually based on a rate set by law, and in most cases, notaries add 21% VAT to the final price.
3. Bank escrow —with a bank, you should expect that it does not allow for the escrow of the purchase agreement and the application for registration in the real estate cadastre; therefore, you will need to arrange this separately with a lawyer or notary if required for the transaction. At the same time, banks use standardized contract templates that often do not correspond to the specific situation. In practice, we also encounter situations where banks do not allow the purchase price to be held in escrow without a loan agreement being signed.
Once all funds have been safely deposited into the account, you can move on to the next step: registration in the real estate cadastre. This step should not be underestimated, as the Land Registry is very thorough when reviewing applications, and no errors are tolerated.
If the application for registration in the Land Registry contains errors, in most cases this results in its rejection and the need to withdraw the entire application and resubmit it. This causes you to lose valuable time, as processing the registration always takes at least 20 days and, on average, around 22 days. It should also be noted that an administrative fee of 2,000 CZK must be paid for each submission (1,600 CZK for electronic submissions).
If everything in the application is in order, the entry in the real estate cadastre is amended. Only then does the buyer actually become the new owner of the property, and the transfer of the apartment is legally complete. At this point, it is therefore completely safe to release the funds from the attorney’s escrow account and transfer them to the seller’s account.
We discussed in detailhow to file an application with the LandRegistry in a separate article.
Common mistakes when selling an apartment include, above all, underestimating its legal status, using a generic purchase agreement template, setting the terms of escrow incorrectly, or choosing an inappropriate timing for the handover of the apartment and payment of the purchase price. Problems can also arise from failing to verify the buyer’s ability to secure financing or overlooking an existing lien or easement.
Many of these mistakes, however, do not become apparent until after the reservation or purchase agreement has already been signed. It is therefore safer to coordinate the individual documents and steps as a single process before signing the first binding agreement.
When transferring an apartment to yourself, the purchase agreement, escrow, and application for registration are directly linked. An error in a single document can therefore complicate the entire transaction. If you don’t want to coordinate each part separately, we can handle the purchase or sale of the property for you—preparing the contracts, ensuring the secure escrow of the purchase price, and taking care of the filing with the land registry.
Let’s now look at what to watch out for when selling an apartment if the property is encumbered by a mortgage, foreclosure, or other legal restrictions. Over the course of our many years of practice, we’ve encountered many types of sales. We’ve handled complex financing arrangements, sales of apartments to foreign buyers, sales under foreclosure, and cases where properties are encumbered by easements. How do such sales proceed, and what other challenges might we face?
With every sale, it is crucial to resolve the financing. The method of financing should already be specified in the reservation agreement. Sales where the buyer pays for everything out of their own funds are rather rare. A much more common method is financing through a mortgage. Although this method is, paradoxically, slightly riskier for the seller, it cannot be avoided.
So what exactly is this risk? For the loan to be successfully granted, a lien must be established. The agreement is entered into between the bank and the seller. The lien on the property is then registered in the real estate registry. In practice, however, this means that even before the transfer of ownership takes place or the funds are deposited in an attorney’s escrow account, the seller encumbers their property in favor of the buyer’s bank.
Are you wondering how to buy an apartment with a mortgage? Then don’t miss our next article, where you’ll learn about the requirements for getting a mortgage. We’ll also give you advice on how to choose the right one and what to expect.
But what if the seller decides to put a property up for sale on which they are still paying off a mortgage? Even such sales are quite common today, and real estate websites are full of apartments with outstanding mortgages. The good news, however, is that this is feasible for the buyer, although there is some additional paperwork involved.
The bank itself must also be more closely involved in the entire sales process. The bank must always approve the sale and allow for early repayment of the loan or assumption of the mortgage (less common). The remaining balance is then most often paid directly from the purchase price. Here, too, however, all transfers must be timed correctly. The remaining mortgage balance changes every month, and this must be taken into account; otherwise, the entire transaction could fall through.
Typically, the buyer deposits the funds into an attorney’s escrow account. Next, an application to transfer ownership in the real estate registry must be filed, and only then should the relevant amount be sent to the bank to ensure the buyer remains protected. However, it is common for banks to insist on direct payment. Upon completion of the transfers, the lien on the property is simultaneously released. The remaining portion of the purchase price is then paid to the seller in the standard manner.
Complications may arise from the sale of an apartment that is part of the spouses’ joint property. We have addressed this issue in more detail in another context—specifically, in an article on the gifting of real estate between spouses.
For example, in our law practice, we handled the sale of an apartment on which the seller still had an outstanding mortgage. At the same time, the buyer financed part of the purchase price with their own mortgage loan. It was therefore necessary to coordinate the requirements of two banks, the escrow account, the repayment of the original loan, and the subsequent removal of the lien.
First, we obtained from the seller’s bank an exact calculation of the loan balance and the conditions for the release of the lien. Based on this information, we structured the purchase agreement and the terms of the escrow so that the relevant portion of the purchase price would go directly toward paying off the mortgage, and the remaining funds would be paid to the seller only after the agreed-upon conditions for the transfer had been met.
As a result, we were able to fully pay off the existing mortgage, secure the removal of the original lien, and simultaneously complete the transfer of the apartment to the buyer without any period during which either party would be left without sufficient legal protection.
Even selling an apartment subject to foreclosure is not impossible, though it is by no means an easy task. Once again, you must primarily expect a longer and more demanding paperwork process.
The real risk, however, arises when the debts exceed the property’s sale price or when new debts and new enforcement proceedings emerge—and the sale is not taking place at auction . This is because there are certain types of debts that may prevent the sale of the property. It also depends on whether the current debts are fixed or continue to grow over time.
Another potential issue is the buyer’s financing. If a mortgage loan is required, the bank will certainly not accept a property subject to foreclosure as collateral. It is therefore necessary to provide another property as collateral or to legally structure the entire sale so that the encumbrance on the apartment is removed from the real estate registry at the correct time.
Whether you are the seller or the buyer in the case of a property subject to foreclosure, never attempt the property transfer “on your own.” Always consult an experienced attorney who can advise you on whether to proceed with the sale or purchase at all. In any case, both parties must communicate with the enforcement officer (and their office), preferably through an attorney who knows how to handle these matters.
All the inconveniences associated with purchasing a property subject to foreclosure may be at least partially offset for the buyer by the lower price, which is more common for such properties. However, the discount is not always worth all the complications that may arise. Therefore, we once again recommend discussing your plans with both a lawyer and the enforcement officer and following their advice.
We provide comprehensive legal services related to the purchase or sale of real estate, including reservation agreements and escrow services. We can also assist with land registry and tax matters. We can handle everything within 48 hours, even when purchasing from a developer.
Selling a cooperative apartment is in many ways simpler than selling a privately owned apartment. In fact, it is not the apartment itself or the ownership right recorded in the real estate registry that is being transferred, but rather the cooperative share. The contract for the transfer of a cooperative apartment is concluded between the current cooperative member and the purchaser. For the transfer to take effect with respect to the cooperative, a valid transfer contract—or, alternatively, a joint declaration by the transferor and the purchaser confirming its conclusion—must be delivered to the cooperative.
However, certain pitfalls may arise here as well. The transferee acquires the cooperative share, along with the lease of the cooperative apartment or the right to enter into a lease agreement, as well as the related rights and obligations. The apartment itself, however, remains the property of the cooperative. Therefore, when transferring a cooperative share, it is also advisable to use escrow and structure the payment of the purchase price so that it aligns with the transfer’s effectiveness vis-à-vis the cooperative. We address the specifics of transferring a cooperative apartment in another article.
A significant number of people believe that property tax does not apply to cooperative apartments. This is not entirely accurate. In this case, the annual tax is paid by the owner—that is, the cooperative—and is typically included in your monthly fee.
Don’t forget that selling an apartment also involves the obligation to obtain energy efficiency labels. You can find out exactly who is responsible for this obligation and how to obtain an energy efficiency label in our next article on selling an apartment and energy efficiency labels.
Although easements are not as common in sales as they are in property donations, they can still occur. However, the seller should keep in mind that an easement will certainly have a negative impact on finding a buyer and on the selling price.
Whether it’s a servitude —allowing a third party to use the property for life —or even a real burden, where you also have a duty of care toward that person, selling an apartment with an easement will certainly not be easy.
It is not entirely impossible, however. Why not try to resolve everything through negotiation? Could you not place an easement on your new property and grant lifetime use there instead?
Of course , there are also several encumbrances that do not affect the sale or the sale price of the property in any way. These are easements, which include, for example, granting access to a shared courtyard or an easement for utility lines serving a neighboring apartment building.
When a developer sells an apartment , the subject of the sale is a property that has not yet been built. From a legal standpoint, this can be quite risky for the buyer; therefore, it is essential to consult with an attorney and properly arrange all further procedures. This is because developers often require payment of a substantial portion of the purchase price even before they begin construction. This creates increased pressure to finance such a transaction and also heightens the risks for buyers.
With real estate development projects, there is a risk that construction will be delayed or canceled entirely. If you’re considering buying a property from a developer, it’s always a good idea to thoroughly vet everything. Check whether the developer is experienced and has a track record of completed projects. You should also pay close attention to the terms of the purchase agreement —is the apartment encumbered by liens, other rights, or easements? Try to find out how the project is being financed as well.
Are you planning to sell your house? Read on to find out what to watch out for so you can avoid unpleasant consequences.
The last point we need to mention is the sale of an apartment by a minor, as we encounter such cases from time to time in practice. These often involve situations where a child receives real estate as a gift or through an inheritance, which the parents would like to sell in order to, for example, pay off the mortgage on their current home.
However, such a sale will be quite problematic, as the child is not legally authorized to sign contracts on their own. For the parents to act on the child’s behalf in this case, court approval will be required. Even if the court were to approve such a procedure, the proceeds from the sale would still belong to the child, not the parents. Nevertheless, with the help of an attorney, even this type of sale can be handled smoothly.
Thousands of pages have been written, and many articles and books have been published, about buying, selling, renting, or donating real estate. However, there are many other ways to deal with real estate that are discussed less frequently. You may have heard of real estate loans, but land swaps are now a rather rare occurrence. We discuss both transactions in more detail in our next article— “Less Common Real Estate Contracts.”
In 2020, an amendment abolished the real estate acquisition tax, so you will not need to file the relevant tax return or pay this tax in this case. Keep in mind, however, that if you sell your apartment, you may be subject to income tax. The amount of income tax depends on how much you originally paid for the apartment and how much you’re selling it for. Only your profit is taxed. This means you’ll only pay tax if the proceeds from the sale of the apartment exceed the cost of acquiring it.
How and where should you properly register to pay income tax on the sale of real estate, and what steps should you take next? You’ll find out in the next article.
The buyer, as the new owner of the property, is then required to file a property tax return.
Are you planning to sell or buy an apartment? Don’t risk unnecessary complications. Our attorneys, with many years of experience in real estate sales, will guide you through all the legal requirements and take care of all the necessary documents and administrative procedures.
Selling an apartment involves more than just signing a purchase agreement. A secure transfer requires following the correct sequence of steps—from verifying the legal status and the reservation agreement, through escrow of the purchase price, to the registration of ownership in the land registry and the handover of the property. Apartments encumbered by a mortgage, foreclosure, or easement deserve special attention, as an improperly managed process can put the money of one or both parties at risk.
At the same time, the seller should not automatically assume that they must pay tax on the sale—the law provides several exemptions based on place of residence, length of ownership, or the intended use of the proceeds. If the contracts, cash flows, and land registry proceedings are structured as a single, cohesive process, most problems during the sale can be avoided.
To successfully sell an apartment, you will primarily need the title deed, the document of title (e.g., a purchase or gift agreement), an extract from the cadastral map, and, if applicable, the building’s energy efficiency certificate. If you’re selling a privately owned apartment, don’t forget to include a certificate confirming that there are no outstanding debts to the homeowners’ association. We recommend having a lawyer review all documents before you post the listing—this will help you avoid delays and potential legal issues.
Selling an apartment without a real estate agency means that the seller handles every step—from setting the price to advertising to preparing the contracts—on their own. The main advantage is saving on the commission, which typically amounts to 3–6% of the purchase price when working with real estate agencies. The downside is that you have to handle the legal and administrative requirements on your own. We therefore recommend using the services of an attorney, who will draft the purchase agreement, oversee the escrow of the purchase price, and handle the registration in the land registry.
A safe apartment sale requires escrow of the purchase price. Money should never be exchanged directly between the seller and the buyer. The safest solution is escrow through a lawyer, which protects both parties—the lawyer will disburse the funds to the seller only after the new owner has been registered in the real estate registry. Alternatives include notary or bank escrow, though these are typically more expensive and less flexible.
As of 2020, the real estate acquisition tax is no longer payable. However, the seller may be required to pay income tax on the sale of the apartment if a five-year period has not elapsed between the acquisition and the sale (or if the seller does not qualify for another statutory exemption, such as using the apartment as a primary residence). The amount of the tax depends on the difference between the purchase price and the sale price. If you are unsure whether you owe this tax, we recommend consulting with an attorney or tax advisor.
Selling an apartment with a mortgage is a common situation that requires cooperation with the bank. Most often, the remaining balance of the mortgage is paid off using the purchase price—subject to agreement among the bank, the seller, and the buyer. Sometimes it is possible to transfer the mortgage to the new owner, but this depends on the terms of the loan. It is important to time the money transfers and the removal of the lien correctly to ensure that the transaction is legally and financially secure.
We provide comprehensive legal services related to the purchase or sale of real estate, including reservation agreements and escrow services. We can also assist with land registry and tax matters. We can handle everything within 48 hours, even when purchasing from a developer.
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 15 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.
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 15 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.
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