The Land Registry answers the ownership question, but what about the condition of what you buy? Homeowners must not provide something like a Home Information Pack (HIP), which used to exist in the United Kingdom. However, an expert report (znalecký posudek) about the property can and should be obtained. In short, this report contains the house condition, building materials and the estimated value, although this is not equal to the market value. real estate agents in qatar
You can find an example of a request for an expert report here. Here you can find other companies that provide this service.
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A final document you want is its building approval (Kolaudace), information that can be found here if it is a new building. The decision on building approval is also required if structural changes have occurred.
In addition to the report, you should certainly discuss the condition of the property with the owner, particularly if you buy an older place. Ask about the heating, temperature, sound insulation and plumbing and write details. Ben also says that you should request any prior building documents, plans and construction approvals and any modifications to the property.
Finally, select your inspection times carefully, particularly for the cheaper new apartments. "The majority of inspections take place during the day the neighbors go out. But then at night, you come home and you can hear them have a cup of tea quite often," Ben said.
Funding
Getting a Czech bank mortgage comes with good and bad news. The good news is that major banks (ČSOB, Česká spořitelna, Komerční banka and UniCredit provide 100% of the estimated value of the property. The key word is estimated. The value of the property is based on the value of the bank, so that you may not get the full amount the vendor asks. On the plus side, mortgage funds can be used for finishings, renovations, and items like kitchens
It depends on the bank whether a foreigner is eligible for a mortgage. Česká Spořitelna said that either temporary or permanent residence is necessary for the applicant. ČSOB said that foreigners' applications are evaluated individually. However, Raiffeisenbank loans up to 90 percent of the value and considers applicants in the country for at least two years. One condition for any hypothec is that you have to prove a regular income source. KB said they require permanent residency for people from non-EU countries.
You can use this or that website to compare mortgages. If you want to visit a mortgage broker here is the list (in Czech) of brokers belonging to the Association for Hypotečních Makléřů (Association of Mortgage Brokers) or AHM. An immobilizer should also be able to advise you.
Payment
When time comes to pay for the property, the money should be transferred to a third party: an immovable office, notary or lawyer, a bank escrow account is usually advised when dealing with larger amounts and more complex transactions. The simple reason is that it can take up to 30 days for the new owner to enter the Land Register.
Ben states that 'all payments should be made in accordance with written agreements and should form part of the purchase price; for such deposits, notaries and most lawyers will be covered by insurance, so the Czech law guarantees you. Very few agencies, however, have such insurance. The seller's monies are usually automatically released within a few days of submitting a fresh copy of the ownership document which shows that the property transfer was registered and other agreed pre-requisites met, but provides for standard provisions for a property transfer tax payment."
A notary's prices are determined by government decree. The rates are shown in the following table.
1.2percent of the first 100,000 CZK value
Excessive amounts of up to CZK 500,000 are 0.6 percent
Excessive amounts of up to 1 000 000 CZK are 0.4%.
From excessive amounts to 0.2 percent for CZK 10,000,000,000,
Excessive amounts of CZK up to 30,000,000 are 0.1%
Minimum quantity: 1000 Kč.
Amounts exceeding CZK 30,000,000 are not included in the basic value bracket.
(Decree on the fees and reimbursement of notaries and heritage managers from the Ministry of Justice.)
Lawyers also provide such services, but the rates of lawyers vary. This lawyer, for example, charges a flat fee per amount. Others may charge a share. Others can charge a combination further. The following are meant only as price examples and are not necessarily recommendations. Search Google using the term "advokátní úschova" to find other lawyers.
In contrast to the UK, payment does not involve a 'housing chain' (wherein a seller must wait for a potential buyer to sell his own property before a sale can officially take place). Ben remarked that "sometimes a chain occurs, but since there is a lack of fluidity on the UK market, it is not such a problem. It never stopped us from closing a sale."
"If there is a chain, it can be secured for a period of time; the most common way is to use a future sale agreement. The future sale contract is a legally binding contract which sets out the conditions that must be met before the final sale contract is concluded. The actual sale agreement should be included in the future sale agreement so that all parties are aware of the conditions and therefore, the transaction is no longer subject to the agreement. Do not confuse this with a reservation contract that does not necessarily include all sales terms.
"If an agreement is concluded for future sales, the buyer will normally pay a deposit forming part of the purchase price, held under one of the above mechanisms. The deposit can be between 10% and 50% of the purchase price, but each case is different. The buyer and seller agree on the terms of the future sale contract and what conditions must be satisfied before the sales contract can be signed. This mechanism is used most often to secure a property if the purchaser seeks a mortgage and both parties are legally obliged to enter into a final agreement when the mortgage is agreed, or when the purchaser raises finance through the sale of a different property in the case of a chains. Other conditions may apply, but there is always a time limit to fulfill these conditions. If the purchaser (or vendor) cannot for any reason meet his part of the agreement and cannot conclude the final contract of sale, a penalty normally applies that can be equal to the total payment of the deposit. You should therefore be certain that you can fulfill all the conditions before entering into such an agreement.
"For a number of reasons, the lack of chains can be. People don't buy and sell so many times. First time home owners are more likely to buy new houses or move into vacant family buildings such as the old grandparents' homes. With fewer people lifting the sticks, the home market – as opposed to investments – becomes slower and is more discreet than links in a chain. The problem with the land registry also helps to make a fluid chain less likely."