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Why offer properties for sale through a real estate agency?

A real estate agency has many more options for advertising a property. When selling flats and houses, they usually have a database of clients who are looking to buy, which increases the chances of finding a potential buyer. A real estate agency also has access to special real estate servers on which an ordinary person cannot place an offer of his/her own.

Is it better to offer properties for sale using one or more real estate agencies?

It is always better to entrust a property for sale or rent to just one real estate agency. In such a case, the agency has more options for advertising an exclusively placed property and can therefore find an interested party faster. A real estate agency also devotes more attention to such properties compared to others (non-exclusive ones). If you place a property with more than one real estate agency, this will probably put interested parties off. This is because they may find the property advertised several times with varying descriptions and even with various prices. The more real estate agencies offering the property, the more it looks as if it is unsellable to interested parties — and that’s why the owner is offering it in so many real estate agencies.

What does exclusive (sole) representation mean to me?

This is an agreement between the owner of a property and the real estate agency that brokers the sale of the property. The agreement means that the real estate agency can invest more in the presentation of the property in advertising media, and has to submit the most precise information to interested parties. There is also the option of offering the property to clients of other real estate agencies under the same conditions. For owners, this means that when selling a property they always deal with one responsible partner, and will not have to communicate and waste time with more than one agent. Last but not least, it means comprehensive services for the sale of a house or flat, and more benefits and services for the seller. Based on experience, it can be said that properties sold exclusively have higher sale prices and are sold faster.

Is it better to conclude an exclusive or non-exclusive contract with a real estate agency?

When selling properties, it is certainly better to conclude an exclusive contract for several reasons. Exclusive properties always have priority over other ones and the real estate agency devotes more attention to them. There are always more options for the presentation of an agency’s own properties and therefore the chance of finding an interested party more quickly. If an owner concludes a non-exclusive contract for the sale of a property and the property is offered by more than one real estate agency, the effect is more off putting for final interested parties, because they may find the property advertised several times with varied descriptions, various prices and the more real estate agencies offering the sale of a property, the more it looks to an interested party that it is evidently unsellable.

I want to sell a property and I don’t know how much it’s worth, can you advise me?

Determining the market price when selling a property is not a simple matter, but it is incredibly important. If the sale price is set too low, the seller loses part of his/her money. If it is set too high, the sale of the property is drawn out disproportionately and it is necessary to reduce the price, which can also have negative consequences. The market price of a property is influenced by many factors (in particular location, accessibility, attractiveness of the location, infrastructure and much more). Don’t hesitate to contact us if you have a specific query (not only about the sale of a house or flat).

What is a co-ownership interest?

An item, i.e. including a property, can be co-owned by more than one owner. The co-ownership interest then expresses the degree of each co-owner’s interest in the rights and duties resulting from their co-ownership of the common item (e.g. a 50% or 60% interest in the item). The size of their interest is then decisive when making decisions on the management of the common item, where the acceptance of a decision requires a simple majority determined by these interests, i.e. over 50%, for approval.

What is an application for registration?

An application for registration is generally understood to mean an application for the start of proceedings for the registration of an ownership right, lien, right corresponding to an easement or right of pre-emption submitted to the land registry, or an application for the deletion of such a right. Proceedings to permit registration begin on the day of delivery of a written application by the parties to proceedings (or one of them) to the land registry office.

Does a contract for the sale of a property that is the joint property of a husband and wife have to be signed by both spouses?

The sale of a property that is the joint property of a husband and wife is, essentially, an act that exceeds the usual administration of such property and it is therefore necessary to have the consent of both the husband and wife. The Civil Code does not require a purchase contract for the sale of a flat, house or land to be directly signed by both husband and wife, although both husband and wife have to agree to its conclusion, otherwise the contract is invalid. To avoid any doubts about the existence of the consent of both husband and wife in the future, it is therefore more appropriate for a contract to be signed by both, or for the spouse that does not sign the contract to confirm his/her consent to its conclusion in writing.

How can I check if there is free access to a purchased property?

When purchasing a house, it is necessary to check whether the subject of purchase includes the land the house is built on and the land around the house. Based on a geometric plan that can be obtained at the land registry, it is necessary to ascertain whether the land is next to a public road, or whether access is granted across other, adjacent land under an easement.

How long does registration in the land registry take after an application is submitted?

The cadastral office registers the establishment, change or termination of an ownership right or other easement by making an entry in the land register based on the legitimate decision of the cadastral office permitting registration. The land registry office has to decide on permitting registration in accordance with the Administrative Code within 30 days, or 60 days in more complicated cases. In accordance with Section 51, par. 1a) of the Cadastral Decree, the deadline for the entry of a right in the land register is within 30 days of the decision permitting registration coming into force. The cadastral office must enter a record within 30 days of the delivery of the decision of a government body or other document confirming or certificating legal relations. The cadastral office must make a note in the land register or, on the contrary, delete a note within 30 days of the delivery of a document eligible to enter a note in the land register or its deletion [see Section 5, par. 3c) of the Cadastral Act]. Notes are entered without delay based on a court ruling ordering seizure or a decision to secure assets in criminal proceedings, or other notes, if so stipulated by other legislation (Section 51, par. 4, of the Cadastral Decree). Changes to other information in the land register must be entered by the cadastral office in the land register within 60 days of the delivery of a document that proves the change or based on which the change is entered in the land register [see Section 51, par. 3, of the Cadastral Decree].

How is property tax paid?

Property tax is paid by the person who is the property owner as of 1 January of the relevant year. A tax return is only filed once and this should be done by 31 January of the relevant year, after which you will usually get a postal money order from the revenue authority by 31 May. Nevertheless, it is necessary to keep an eye on payments, because the revenue authority does not always send money orders (it’s not a statutory duty). If a decision on an application for the registration of an ownership right in the land register is not made by 31 December of the year in which the application was submitted, the new owner shall file a tax return in the following new year, by no later than the end of the third month following the month in which the registration of the ownership right was registered in the land register.

Who pays property transfer tax?

As the payer of property transfer tax, the seller is under a duty to send the local revenue authority a property transfer tax return by no later than the end of the third month after the month in which the right was registered in the land register. Have the receipt of the tax return confirmed (stamped and signed by the responsible worker) on a copy of the tax return, which you make for this purpose. The tax return must include the original or a notarised copy of the purchase contract with a stamp confirming permitted registration by the land registry office (to be sent by the land registry to the seller and buyer at their permanent residences, or addresses given as their correspondence address) and an expert report (appraisal) on the price ascertained in accordance with special legislation. If you do not have an expert report yet, contact an expert who has a licence for such activities, or your LEXXUS agent can recommend one for you. Property transfer tax is payable by the same deadline as set out above for the submission of a tax return. Tax returns are filed by all sellers, if the sellers are husband and wife, each of them completes his/her own tax return.

Is income tax paid on the sale of a property?

Income tax on the sale of a property is paid by the seller in the event that the original purchase price based on which he/she acquired the property is lower than the current price for which the property is sold. The tax base is the difference between the two purchase prices. The tax rate is 15 percent or higher, depending on the amount of income. Income on the sale of a property is included in the annual income tax return, together with other income that the payer had in the relevant year (e.g. salary from employment, income from business, from rental properties, etc.). As income tax returns are filed once a year, several months could pass between the sale of the property and the payment of income tax. There is an exemption from income tax on the sale of property in the following cases: - The seller demonstrably lived in the property for at least two years immediately before the sale (it is not necessary to have a permanent residence there) - The seller owned the property for at least five years - The seller had his permanent residence there for less than two years, or owned the property for less than five years, but will use the income obtained within one year of the sale for his/her own housing needs - If this concerns the sale of properties, flats or non-residential space acquired by inheritance from a testator who was a relative in direct line or husband (wife), the period of five years is reduced by the period that the property was demonstrably owned by the testator or testators, if the property was acquired by progressive inheritance in direct line or by a husband (wife). What this means for you: if the heir from whom you want to buy a property can prove that the property was demonstrably owned by his/her predecessor for more than five years, then it is exempt from tax. However, this must be an heir who was a relative of the testator in direct line or a spouse.

How do I register my new address?

Is it sufficient to register your new address (at the relevant municipal authority/office), de-registration takes place automatically. You must subsequently inform other institutions (bank, revenue authority, health insurance company, etc.) of your new permanent residence. If, after signing a purchase contract, you change your permanent address to the purchased flat, you must report this change to the land registry. All you have to do is complete the form at http://www.cuzk.cz – section “forms”, file – “Ohlášení změny údajů o vlastníkovi…” (in English: “Reporting a Change of Information about the Owner…”) and send it to the land registry office, without a revenue stamp. If you want the post office to send your mail to your new address, you must arrange forwarding to the new address at the relevant post office.

How to ensure your new property is secure?

The buyer should (unless already agreed by a bank in the event of a mortgage) arrange home and contents insurance. It is important to have insurance against damage caused by third parties, in case of an accident, e.g. involving radiators, water or fire, etc. Insurance should be arranged before the registration of ownership rights (purchase contract) in the land register, or it should be arranged on the day of hand over. It is usual to change the locks on the front door (often required by the insurance company); in the case of gas appliances, it is not a bad idea to have an initial inspection done (especially of household boilers), just to be safe.

What is good to know about energy labels?

According to the law, energy labels are mandatory for new buildings, or following significant modernisation and for administrative and apartment buildings, as well as houses, but only when these are sold or rented out. Energy prices are rising and the energy performance certificate of a building (EPCB) should serve to protect consumers from purchasing a building with heavy energy consumption. Even if the buyer acquires a building without a certificate, it may require one additionally from the seller, who is under a duty to have one prepared. The EPCB must be placed visibly only in the case of public buildings, this does not apply to apartment buildings. From 1 January 2013, an energy performance certificate or indicator must be included in all information and advertising materials for the sale of a flat and from 1 January 2016 also for rental properties. If you do not have an energy performance certificate for a building, you could be fined up to CZK 100,000.

What is the Flat Harvest?

The Flat Harvest is an event arranged exclusively by LEXXUS and its partners. Twice a year several residential projects are opened to the public. There is always a competition for clients as part of the event. More a www.bytobrani.cz.

Dictionary of Terms


A loan instalment containing both the repayment and interest in one amount. This amount is fixed for the entire agreed term of the loan, only the repayment to interest ratio changes fluidly. At the start, the amount mostly consists of interest, but the ratio changes in favour of repayments over time and at the end of the repayment period, the majority of the amount is the repayment, the remainder interest. LEXXUS works with experienced mortgage brokers who will arrange easy financing for your property. More here.

Tenement Building

A building containing multiple residential or non-residential units used by clients for housing, in return for which tenants pay the owner rent. You can find the services we provide owners renting flats or houses here.


A person/company that buys land on which it builds a construction project intended for subsequent sale. You can view our current range of new development projects for sale here.

Energy Label

This is a building designation that expresses its energy demands. You can read more about the issue of energy performance certificates/energy labels here.

Exclusive Mandate

An exclusive mandate is understood to mean co-operation with one real estate agency.

Home staging

The preparation of a house or flat for professional presentation for the purpose of the property’s sale or rent, making it more interesting to the widest possible group of interested parties through such preparations.

Skeleton Structure

The rough structure of a property without aesthetic finishes—put simply: foundations, connections to services, load-bearing walls, dividing walls, and roof.

Mortgage Broker

A mortgage broker is a company licensed by banks to broker the sale of mortgage products. Its main benefit is the time and money it saves the client—it is able to offer different products from various banks as standard and choose the most suitable product for the client/property. LEXXUS works with experienced professionals in this area. You can find more information about financial services here.

Security Account

A security current account provides increased safety when buying or selling property, for both the buyer and the seller.

Land Registry Office

An office administering all data about properties and their owners.


A returnable or non-returnable advance that a client pays to the property owner on signing a rental agreement. It primarily serves as a guarantee in the event of damage to the property’s fittings and fixtures by the tenant or for the collection of unpaid rent. You can find our current range of rental properties here.

Occupation Approval

An official procedure performed before the use of a building that has just been completed. If a building cannot be built based solely on a report to the building control authority, an occupation approval certificate from the relevant building control authority is required.

Title Deed

A title deed or extract from the land register is a list of properties in a cadastral area owned by a specific owner or co-owners and serves to confirm such ownership.


A floor between the ground floor and the first floor, also sometimes called the raised ground floor.


A flat that is on more than one floor.

Acquisition Title

An acquisition title is understood to be a document that proves ownership of a property—e.g. a purchase contract. We provide comprehensive legal services for the sale of properties—you can learn more about our services here.

Non-Exclusive Mandate

A non-exclusive mandate is understood to mean co-operation between a property owner and more than one real estate agency.

New Building

A property just completed or built in the last few years can be regarded as a new building. You can view our current range of new buildings for sale here.

Notarial Escrow

Notarial escrow is used for the safe deposit of funds for the purchase of a property. A benefit of notarial escrow is that the seller does not bear the risk that it will not get its money for the property and, the buyer does not risk handing over the purchase price before registration of ownership rights to the property in the land register.


A lot is piece of land that has a designated position, size, boundaries, and its own lot number entered in the land register. You can find our current range of land on offer here.

Reservation Contract

A reservation contract is a document that is signed by the buyer and the property owner. A reservation contract defines the basic parameters of the future transaction and the time for which the owner cannot offer the property to other interested parties, until the buyer and owner conclude a purchase contract, or agreement on a future purchase contract. LEXXUS provides its clients with comprehensive legal services—you can find more information about our services here.

Residential Market

The market in properties for housing. In most cases it applies to a specific location (Prague, the Czech Republic, etc.). You can find current reports on the Prague residential market here.

Agreement on a Future Purchase Contract

This is a standard type of contract that is mostly concluded for the purchase of properties that are still under construction, or in the event of a completed building that the buyer wants to finance with a mortgage loan, but is still unable to produce a purchase contract for the bank. We provide legal services as a matter of course; you can learn more about our services here.


An easement restricts the property owner in favour of another person. Easements are entered on the ownership deed in the land register.


This is a property to which a lien entered in the land register applies. The creditor (usually a bank) has a registered lien on the property in case the buyer does not repay the loan in full and on time. The amount of collateral depends on the price of the property and the amount of the mortgage provided. You can find more information about financing options for purchasing property here.

Lien Contract

An agreement between the creditor (a bank) and the buyer of a property to establish a lien on a property and enter it in the land register. LEXXUS works with professional mortgage brokers who will be happy to help you arrange finance—more information here.

Agency Contract

A contract between a real estate agency and property owner based on which the real estate agency provides its services—i.e. primarily searches for a suitable client to purchase or rent a specific property. You can learn more about our services here.

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