Are you about to buy real estate for investment in the Czech Republic? Read this before you proceed

Pre-purchase property assessment is a thorough engineering review of an apartment, home or building. The purpose of this review is to diagnose the state of the real estate asset and to identify such construction related malfunctions and flaws as it may contain/ following the conclusion of the investigation, the client is presented with an engineering report courtesy of the company performing the diagnosis. The report lists the construction related malfunctions and flaws identified and also provides a general overview of the construction engineering state of the property. Pre- purchase assessment not only identifies construction related malfunctions and flaws but also provides guidance and recommendations on the best way to fix said flaws as well as provide you with a price assessment for each remedy according to the average price accepted in the local market.

The results of the pre –purchase assessment will provide you with security and peace of mind and save you considerable grief, time, trouble, financial costs and disappointment down the line.

Do you know people who purchase a second hand vehicle without testing it in a garage?

Few, if any, people would consider doing so. However, when it comes to real estate transactions the situation is different.

It is not clear why anyone would invest hundreds of thousands of Euros in purchasing a real estate asset without thoroughly examining it prior to the purchase- but yet we run into such cases all the time.

People who purchase a second hand apartment lack the knowledge and experience that would enable them to identify construction flaws or other flaws in their new property. Often, a cursory examination will show nothing more than a well lit attractive apartment. However, a professional can uncover the secrets hidden behind the walls. A pre- purchase property assessment will provide you with a reliable and realistic view of the true condition of the property.

An ordinary buyer cannot, of course, perform an assessment of the cost of repairing the identified flaws in the property, or calculating their portion of the total property value. Accordingly, a pre-purchase assessment will enable you to reach an informed decision about purchasing the property and in light of the results of the assessment; you can assess the realistic worth of the property. This type of examination can prevent you from purchasing an apartment at too high a price, and furthermore act as a factor in the negotiations surrounding the price of purchase. An estimate of the cost of repairing the flaws listed in the pre- purchase assessment report is a perfectly legitimate basis for requesting a reduction in the asset price in the event of a purchase.

What aspects of the property can be examined?

  • Compatibility with technical specifications, examination of ground plans for the property and its examination in light of the local zoning and construction ordinances and the other Czech regulations.
  • A description of the physical status of the building and its parts.
  • Examination of the building frame and identification of exterior flaws in the flooring, ceiling, walls, windows, doors, coatings, and surfacing.
  • Identification of construction flaws in the interior of the property- floors, walls, windows and doors, ceilings (wetness and mold flaws, leaks, cracks, crooked walls, safety hazards).
  • Flaws to various building systems- examination of the electric network in the home, examination of the gas system.
  • Sewage and water flow flaws, condition of the pipes, leaks within and without the house, condensation and so forth.
  • Thermal and acoustic hazards- thermal examination, acoustic examination.

What does the property assessment report include?

  • A description of the property as it appears in the Czech Republic Real Estate Registrar.
  • The findings of the physical examination in relation to the examined issues.
  • An assessment of the state of the property.
  • A specification of the required repairs.
  • An estimate of the costs required to carry out the repairs.
  • Appendices, such as Pictures, mobile and fixed furniture and so forth.

In short, a pre- purchase property assessment in the Czech Republic could help you in three main fields:

  1. In light of the professional opinion detailing the construction flaws, the possibility of fixing them and the associated costs, you can reconsider the advantages and disadvantages of purchasing the property in question- and possibly determine that purchasing it is not advantageous.
  2. Should you decide in favor of completing the purchase, in spite of the construction flaws revealed by the report, said report will aid you in carrying out financial negotiations with the seller. A professional opinion can help you asses the actual value of the property in relation to the seller’s asking price, and in many cases facilitate achieving a reduction on the agreed upon price of the transaction.
  3. The professional opinion received in the pre- purchase assessment is a legally binding opinion that is admissible in a court of law. Should you enter into a dispute with a seller of the apartment in the future, it should be possible to sue him on the basis of this opinion.

Do you require a pre- purchase property assessment service in the Czech Republic in general or Prague in particular? We will be happy to assist you. Please contact us.