Guide to buying a property in the Czech RepublicWe in Conbiz help investors who are thinking of buying a real estate property in the Czech Republic. In order to make the decision easier for new investors in the Czech Republic we have prepared a detailed guide with comprehensive information that will help you to understand what lies ahead of you. Reading the guide and carying out the following stages will ensure that the procedure of buying a property in the Czech Republic will be as smooth as possible. Finding a house or a plot in the Czech RepublicThere are several websites where you can find a site, a plot of land, a house, or an apartment. The main websites are: Reality and Sreality; they both also have a basic site in English, however some of the descriptions of the properties can be unclear, so it pays to learn a few words and general terms in Czech. There are also many general web sites, such as Reality iDNES or Prague Real Estate which have details of various properties, as well as the websites of private real estate agencies. You can also do a search in Czech Google using key words such as reality Česká Republika, reality Praha, nemovitosti, or pozemky. Use of the word Byty (apartment) also sometimes works, but this term is too general and the data received from Google are mostly irrelevant. The advantage of searching using Czech terms is the focus on those companies which operate in the Czech market. The nature of the Czech market is that it is possible to find the same property registered with several different agencies, usually with different prices and descriptions and this can sometimes be confusing. We want to warn you about the prices advertised in the websites. Real estate agents say that most of the prices advertised are much higher than the actual prices and the lowest of these prices are slightly higher than the market prices. We recommend taking 10% off the advertised price in order to reach the actual price of the same property in the market. This lack of precision derives from the fact that the Czech vendors do not take correct advice or carry out accurate appraisals before beginning to advertise the property. If you are unfamiliar with the Czech market it is a good idea to hire the services of a consultant who is aware of your concerns and as such will be able to guide you in the thicket of information on the web. This will save you money and time in the long term and will give you peace of mind in the short term. Regarding the location that will give you the best return on your investment, it should be remembered that if you buy a property in classic Prague in an area surrounded with classic Prague buildings you are buying a property in the center of things, as tourism to the area (one of the developing branches in the Czech Republic) never ceases. This is always an attractive choice; it can almost certainly be assumed that the property will at least maintain its value in comparison with other places. Outside Prague's historical city center, there are additional factors which have an impact on the value of the property that it is worth taking into account such as access and the return on the property. It is also worth mentioning international schools (for instance it will be easy to let apartments in Nebušice because of the proximity to Prague's international school), the clean air of the parks (such as Průhonice), or even just the added value which comes with a prestigious address such as Hanspaulka in Prague 6. Land registration in the Czech RepublicAssuming you want to buy a residential property, the first thing worth doing is to acquire a Land Registry Office (Výpis z Katastru nemovitostí) declaration. This step is carried out in order to ensure that the person who is selling the property to you is the legal owner. Only the property's legal owner has the right to sell it, although there are certain cases where agents, lawyers, or third parties acting in the owner's name can close a deal on their behalf. Obviously you don't want to find yourself unable to move to your new house after handing over payment and therefore it is important to check this issue well. The declaration also shows whether there are loans or encumbrances on the house which could be transfered to the new house owners. Usually the previous owners pay these loans after receiving payment for the property. Fortunately all you have to do in order to acquire a full declaration is to visit Czech POINT. This can be found in most post office branches in the Czech Republic. The cost of the declaration is 100 Czech korunas and the person asking for the declaration is asked to provide the supplier with proof of the identity number, area of land registration, proof of ownership number (LV), plot number, and the property's address. By the way, any notary can do this, and he does not need to show an identity card. The cost is according to page, and some of the declarations have more than one page. If you want to receive a site map of the property's location from the authorities, this can be obtained from the municipality in which the property is situated. Another option is to use this site. You just need to enter the street name and the name of the city in the Czech Republic in the upper left box in the site. Alternatively, to receive short ownership declarations and site pictures its a good idea to go into the land registry office website which offers free services; you just have to enter the name of the town and the plot number of the property, and the property ownership will appear immediately. Czech property appraiser's reportLand registry answers the question of land ownership, but what about the state of the property purchased? House owners are not required to supply an information package about the property as is customary in many countries in Europe. However, it is possible and even desirable to acquire a professional appraisal (znalecký posudek) of the property. The report includes an abstract of the house's situation, its building materials and the property's real value, which is not identical to the property's market value. An example of a request for a appraiser's report can be found here. One last document, necessary in the case of a new building, is a building permit. (kolaudace) The decision on the building permit for the building is necessary in the event of structural changes. Information on the subject can be found here. As well as the appraiser's report, it's definitely worth talking to the property's owner about its condition, especially if it is old. You should ask about heating, insulation, temperatures, and plumbing. This information should be asked for in writing. It is highly recommended to ask for all the building's previous documentation, plans, building permits and any change that has been made to the property. In conclusion, the time you check the property should be chosen carefully especially in the cheaper apartment buildings as sometiomes valuable information is revealed which can cause the whole deal to collapse. For instance, most checks take place during the day when the neighbors are out. But when you come to check the property in the evening, after work hours, there are instances where you can hear the neighbors drinking their tea on the other side of the wall. Mortgages in the Czech RepublicMortages in the Czech Republic – for Czech nationalsTaking out a mortgage from a Czech bank comes with good news and bad news. The good news is that the big banks (ČSOB, Česká spořitelna, Komerční banka, UniCredit) sometimes offer Czech nationals a mortgage of 100% of the apartment's estimated value. Estimated is the key word. The property's value will be estimated by the bank, so that it oculd be that you won't receive the full sum the buyer is asking for. On the other hand, the mortgage can be used for other things such as renovation or furniture.
 |
|
|
