What to look out for when concluding a land purchase contract?

JUDr. Ondřej Preuss, Ph.D.
2. March 2025
7 minutes of reading
7 minutes of reading
Real Estate

When buying land, you need to focus on slightly different things than when buying a house or apartment. Of course, it depends on the purpose of such a purchase. We will approach the purchase of a forest differently, and the purchase of a building plot for the purpose of building a house differently.

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Check land prices

Have you looked at a plot of land, do you like the location, size and accessibility, only the price seems prohibitive? Then start by checking and comparing the price with other plots of similar parameters.

At the beginning of 2025, prices of building land in the Czech Republic are on the rise again after a slight decline. However, the development varies widely by region. In Prague, the average price per square metre remains high, with some plots even rising further, mainly due to increased demand for smaller plots. It is the smaller size of the plots sold that can cause the overall transaction price to fall, while the price per square metre rises. In the regions outside Prague, the price growth is slightly slower, but the market recovery is also visible here. The average price of a building plot in Prague at the beginning of 2025 reaches somewhere up to CZK 14,000 per sqm, in the vicinity of Prague around CZK 6,500 per sqm and in other larger cities around CZK 3,300 per sqm. Outside the main centres, building land prices are currently around CZK 2,500 per m². Apart from the location, the specific price is also influenced by the type of use of the land, for example, whether it is intended for the construction of a family house or just for recreational purposes.

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Tip for article

Tip: Have you bought the land you plan to build on? The key is to check whether the land is suitable for building on. And if it is not, because it falls within the agricultural fund, you will first have to be removed from the fund. In our separate article, we’ll tell you how to do this.

The price level of a building plot is of course also reflected in the availability of infrastructure, accessibility, road or train connections, proximity to major cities and the availability of shops, offices or cultural activities.

How to find out the price of land?

If you are not sure about the price of the land on offer, compare it with the prices of land with similar parameters. However, you need to take into account all the parameters mentioned above and especially the type of land use.

In the case of agricultural land , the five-digit BPEJ code indicates the suitability (and therefore the price) of the land. This provides information on the climatic regions (first digit), the main soil units (second and third), the slope and exposure (fourth) and the depth of the soil profile and the content of the soil skeleton (fifth). Many other characteristics can be derived from these values and the practitioner can extract a great deal of information from them to determine the value of the soil. You can find out the BPEJ code from the land registry. The price of land according to the BPEJ code varies depending on the cadastral area and is dealt with by some web applications.

If, on the other hand, you want to sell the land and you don’t know how to set the price, you can take advantage of a number of free online pricing offers. There are also various land suitability calculators, charts and land price lists to help with setting the price. But be aware that very often nothing is quite free, meaning that it is usually an offer from an estate agent who will then offer to sell your land. Consider whether the services offered really match their prices or whether you can manage everything on your own or with the help of other professionals.

Tip for article

Tip: Selling an apartment or house is not easy. At least that’s what we hear from real estate brokers who cannot recommend self-selling for perfectly logical reasons. But is it really so hard that you can’t handle it yourself? Whether your motivation for starting to sell without the help of a real estate agent is the desire to avoid paying commission, or you simply don’t trust brokers, we’ll tell you how to proceed, what to look out for and when it’s better to seek the help of a professional.

Study the zoning plan carefully

If you are buying or selling land to build on it, the key is to buy a building plot for that purpose. However, we recommend that you also study other plans with the surrounding area. There may be a busy road in the pipeline, the construction of a commercial complex, or something else that will adversely affect the status and value of the land in question. And not just to the value of the land, but directly to your life.

Don’t limit your research to the municipal plan, but focus on the county plan as well. In the municipal plan you should of course be interested in the land use of the land and for building land then the degree of buildability. If you are not an expert on the subject, it is a good idea to consult an expert beforehand. In the zoning plan you will also find various signs and codes that may indicate that construction is not possible. Subsequently, it is advisable to check whether the municipality’s zoning plan is in line with the county’s, so that, for example, the county does not have other plans for the land. Theoretically, you should be able to find this out from the municipality’s zoning plan, but our experience as an attorney shows that there are sometimes exceptions that prove the rule.

Tip for article

Do you disagree with the changes in the zoning plan? Have these changes directly affected your land or neighbourhood and are you worried that they will make your life much more difficult? Find out how to defend the zoning plan.

Check the land registry: the fence does not always have to follow the property boundary

Always start from the situation registered in the land registry. However, compare it with the reality. Fences or walls between plots can lead the wrong way. You could end up discovering that you only bought the part of the land that the seller had fenced off and the rest belongs to someone else, such as the city.

The owner of the land that was wrongfully taken may then demand payment of unjust enrichment (you were wrongfully using their land) or demolition of the fence and return of the land. Restitution in this sense means letting the land be used, simply building the fence elsewhere and thus reducing the size of your own land.

However, once the land purchase agreement has been concluded, it will be too late to chase the bull. Everything needs to be taken care of while the seller is interested in agreeing with you

From law practice: Too many easements on the land

Mr Štefan looked for a plot of land outside Prague. He wanted to build a Canadian log cabin on it. To make sure that everything would go smoothly and without complications, he ordered a review of the land purchase contract from us.

According to the zoning plan, the land was indeed a suitable refuge for such a development. However, we discovered several obstacles in the land registry. There were more easements on the land than usual. These were both the classic water and gas utility easements, but several neighbors also had easements recorded. They had the right of passage over the land and even the right to let their flock of sheep pass.

In legal parlance, we would describe this as a situation that would be incompatible with peaceful neighbourly life. Plain and simple, Mr. Stephen would not have much peace there. Thanks to our warning, he eventually backed out of his plan in time and chose a more suitable plot of land, not far from the original one.

Summary

A land purchase agreement is a key document in the transfer of ownership and its proper drafting is essential to protect the rights of both parties. It should contain the exact identification of the land, the agreed purchase price, the payment terms and also the arrangements for handing over the land. Before you sign the contract, it is a good idea to check the legal status of the land at the Land Registry, find out its actual value and check that there are no encumbrances or other restrictions. A properly set up contract protects not only the buyer but also the seller and minimises the risk of future disputes. If you are unsure about drafting a contract, it pays to contact a professional.

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Are you solving a similar problem?

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.

I Need help

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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