As the purchaser only legally becomes the owner when they are registered as such in the Land Registry, there is a period between signing the purchase contracts and them actually becoming owner by registration.
Protect your money with an escrow.
It is always recommended to have the purchase price in an escrow account through this time period. Otherwise, you could have the situation where there is a problem registering you as owner at the Land Registry (it can be even small details like a misspelling of your name or residence address which would halt the process) but in the meantime, the buyer has the full purchase price. Not a great situation.
Notary offices in the Czech Republic function as a neutral third party and are safer to deal with than committing the purchase price to the real estate agency itself. Here is a list of notary offices in Czech Republic.
Even though agents may insist that it is ‘company policy’ for them to handle the full purchase price we have found they will agree to commit everything to a notary when you convince them that you are serious and coming forward with cash.
It is also possible to use a bank or an attorney in this same function.
If your Czech real estate agent continues to insist that they will only accept the purchase price going directly to them, move on to another agency or drop the property altogether as something strange is going on.
You can also ask any questions about purchasing property in Czech Republic by contacting us: info@czechpoint101.com.
Updated/Aktualizováno: December 1, 2014,
Hello,
I am wondering if you could help me.
I am in the process of purchasing a property in Prague, and my mortgage application was just approved. As I am abroad, I thought I would be able to complete the process from here avoiding a trip to Prague, but the bank is now saying I must be present to sign the loan contract and so they can verify my ID. Is there another way of doing this from abroad?
Can I hire someone with POA to complete the process for me and maybe just send the bank my id and passport by post for verification?
Thank you for your help,
Celia
Hi Celia,
Thanks for the note and congratulations first of all on your purchase and mortgage approval.
With regard to visiting the bank personally it really depends on the bank but in general they are very bureaucratic. One visit during the mortgage process is for sure necessary but after that sometimes they agree for verified signatures to be made at a Czech embassy or consulate. Power of attorney used to be more commonly permitted by banks but for about 8 years now has been rarely allowed.
I hope this information helps,
Nathan