Property and ownership information |
While
a real estate register exists as a depository for property conveyances,
mortgages, etc., this information is not universally guaranteed and the
process of documentation is slow. |
Transaction information |
Open listings for agents are: Information N/A.
Exclusive listings for agents are: Information N/A.
Transactions are documented in the real property register.
Transaction documents (contracts) form the basis for real property
conveyances since deeds are not used. |
Real estate trade association |
Asociace realitních kancelárí Ceske republiky (ARK CR)
Na Chodovci 3
Praha
4
CZ-14100
Czech Republic
Phone : +420 272 762953
Fax : +420 272 766401
e-mail : arkcr@arkcr.cz
Web : www.arkcr.org
The Association of Real Estate offices of Bohemia, Moravia and
Silesia was founded in 1991 by 17 real estate firms. From March 2002
the name was changed to Association of Real Estate Offices of the Czech
Republic. At present time there are around 200 members - firms, which
mean about 1200 individuals working as real estate brokers as members
of ARK CR. |
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Rights and interests in land |
Under
Czech law, buildings are not considered part of land, however, trees
and growing crops are considered part of the land. Nevertheless,
ownership of land and buildings must be registered.
Foreign ownership of real property is allowed. The state guarantees
equal protection of ownership and other rights to real property for
foreigners.
The Czech Republic retains certain rights in real property such as escheat and the right to levy real estate taxes.
Real property owned by one spouse before marriage remains separate
property. Property acquired during marriage is considered joint in most
instances. There is not homestead protection under Czech law. |
Forms of ownership |
Real
property in the Czech Republic may be owned in severalty or
concurrence. Concurrent forms of ownership include General Partnerships
(Verejna Obchodni Spolecnost); Limited Partnerships (Kommanditni
Spolecnost); Limited Liability Companies (Spolecnost s Rucenim
Omezenym) and Joint Stock Companies (Akcioua Spolecnost). |
Transfer of title |
Deeds,
in a common law form, do not exists in the Czech Republic. Ownership of
real property is transferred upon the recordation of a duly executed
contract in the real estate register. real property can be conveyed
upon death via a will. There is no form of title insurance in the Czech
Republic, and the recordation process is uncertain and not guaranteed.
Generally, poor record keeping makes it difficult to determine whether
one has undisputed ownership to real property. |
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All rights and interests in real property must be registered in the real estate register. |
Contracts |
Contracts
in the Czech Republic are concluded when an offer is accepted.
Contracts may be either oral or written, however written form is
required if the contract relates to a property transfer. Contracts
concerning real property are construed under the laws of the district
where the property is situated. |
Mortgages |
Real
property may be mortgaged as security for a debt in the Czech Republic.
Mortgage contracts must be written and entered into the real estate
register in order to be effective. Most mortgages are established on
the basis of debentures and mortgage bonds are issued. Date of entry
into real property register determines priority. |
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Property taxes |
Real
estate tax is payable by the registered owner of land or buildings
located in the Czech Republic.If ownership cannot be determined, real
estate tax is payable by the user of the land/property.
In practice, the user of land/real estate bears the burden of the
tax, either directly or through increased rent. All owners of real
estate must file a real estate tax return with the Tax Office if any
change to the real estate since the previous year has occurred.
Though tax is payable annually, no additional return needs to be
filed unless the nature or ownership of the real estate changes.
Real estate transfer tax is levied on the sale or transfer of real
estate. The tax rate is 3% and is levied on either the transfer price
or the officially assessed value, whichever is higher. The tax is
normally payable by the seller, with the purchaser acting as guarantor. |
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Insurance |
The
Czech insurance market continues to be very concentrated (the top five
Czech insurers account for more than 80% of total premiums written). It
is dominated by a former state monopoly company now owned by local
shareholders. The Czech insurance industry reports a consistent growth
of gross written premium. Although still lagging behind EU average
levels, insurance penetration has been constantly growing in the Czech
Republic. The split between life and non-life premiums written in 2004
amounted to 40% and it is still growing. |
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