For most people, buying property is the largest financial transaction of their life. Yet many buyers rely solely on the estate agent or assume they do not need a lawyer. In this article I explain why legal representation is practically indispensable when buying property, what exactly your lawyer should check and how to choose the right one.
Why You Need a Lawyer for a Property Purchase
The estate agent primarily represents the seller, the party paying the commission. A purchase contract prepared by the agency therefore cannot be regarded as a neutral document. The buyer's lawyer protects the buyer's interests alone. They check that the contract contains all the essential provisions, that the conditions for releasing the purchase price are set up correctly and that no hidden legal risks attach to the property.
For an ordinary flat or house purchase, legal fees are in the region of a few tens of thousands of crowns (roughly 15,000 to 30,000 CZK including attorney escrow), a negligible investment in the context of a multi-million transaction. The cost of resolving legal problems that a lawyer uncovers in advance can be many times higher.
What Your Lawyer Should Check: Due Diligence
Thorough legal due diligence is the cornerstone of a safe purchase. A good lawyer should review the following areas.
The Land Registry Extract
The land registry (katastr nemovitostí) is the alpha and omega of every property transaction in the Czech Republic. Your lawyer verifies that the seller is the actual owner, that the area and type of land match, and that all identification details agree. They check the complete extract, not only the title sheet but also the collection of deeds, and request a fresh extract immediately before signing.
Mortgages, Liens and Enforcement
A property may be encumbered by a bank's mortgage (the seller's loan), a contractual lien or an enforcement order. Your lawyer checks the current status of all charges and proposes a mechanism to ensure they are discharged before or simultaneously with the transfer of ownership. If the property is subject to enforcement proceedings, particular care is needed: a transfer of property under enforcement may be invalid.
Easements and Other Rights in Rem
Easements (věcná břemena) can significantly affect the use of a property. Typical examples are rights of way (passage and access across your land), utility easements (gas, water and sewer lines) and rights of use or usufruct (typically a former owner's lifelong right of residence). Beyond easements, your lawyer also checks other registered rights in rem, in particular pre-emption rights, prohibitions on disposal or encumbrance, and rights of repurchase.
Easements created by contract come into existence only upon registration, so you will see them in the land registry. There are, however, burdens that need not be registered: statutory easements (for example in favour of energy network operators), easements acquired by prescription, and leases or other contracts that burden the property in practice. Your lawyer should check both.
Zoning and Building Compliance
For plots and family houses it is important to check the municipal zoning plan: whether the land is designated for building, what regulations apply and whether developments are planned nearby that could reduce the property's value. For buildings, your lawyer verifies the occupancy permit, the conformity of the actual state with the building documentation and any unauthorised structures.
Purchase Price Escrow: The Key Safeguard
Never transfer the purchase price directly to the seller before ownership is registered. Holding the purchase price with a third party is the standard safeguard protecting both sides. The money is deposited with a lawyer, a notary or a bank and released to the seller only once the agreed conditions are met, typically after ownership has been registered in the buyer's favour.
Attorney escrow has the advantage that the attorney is insured by law and subject to the professional supervision of the Czech Bar Association. The escrow account is kept separately from the attorney's own funds. Since the amendment to the Act on the Legal Profession (Act No. 73/2025 Coll., effective from 1 April 2025), cash transactions on escrow accounts are prohibited, every escrow is recorded in the electronic escrow register kept by the Czech Bar Association, and since 1 January 2026 a guarantee fund exists for clients harmed by misuse of escrow. Attorney escrow usually costs between 5,000 and 15,000 CZK depending on the purchase price.
Red Flags: What to Watch Out For
Several warning signs should make you stop and think. The seller presses for a quick signature without the opportunity for legal advice. The agency says "our lawyer will prepare the contract for you", but that lawyer represents the seller. The purchase price is well below market value, which may indicate fraud or hidden defects. The seller refuses access to documentation. The land registry shows pending entries (plomby), meaning proceedings to change the record are under way. The actual state of the property does not match the registry.
Cross-Border Transactions: Czechs Buying in Austria, Austrians Buying in Czechia
A property purchase in the Czech-Austrian context brings specific challenges, because the two legal systems work differently. Unlike in Germany, a notary is not mandatory for a property purchase in either the Czech Republic or Austria.
If you are a Czech citizen buying in Austria, bear in mind that registration in the Austrian land register (Grundbuch) works differently from the Czech cadastre. The signatures on the purchase contract must be certified by a notary or a court (beglaubigte Unterschrift, Section 31 of the Austrian Land Register Act, GBG), otherwise the contract cannot be registered; the contract is usually drafted, and the escrow handled, by a lawyer or notary acting as Vertragserrichter. As an EU citizen you are treated in the same way as Austrians, so the permit regime for foreign buyers does not apply to you. You are, however, subject to the same provincial restrictions as Austrians: in several federal provinces (Tyrol, Salzburg, Vorarlberg) the use of property as a holiday home (Freizeitwohnsitz) is strictly regulated, and the purchase of agricultural and forest land requires approval. Buyers in Austria also pay real estate transfer tax (Grunderwerbsteuer, 3.5 %) and a land register registration fee (1.1 %).
Conversely, an Austrian citizen buying in the Czech Republic has been subject to the same rules as Czechs since 2011; there are no special restrictions for foreigners, not even for agricultural land or forests. The Czech real estate transfer tax was abolished in 2020; only the annual property tax applies, plus income tax on a later sale where relevant. A bilateral treaty on mutual legal assistance applies between the Czech Republic and Austria (Czech Decree No. 9/1963 Coll.), so public documents issued or certified by a court, authority or notary of one country are recognised in the other without an apostille or superlegalisation. What you do need is a certified (sworn) translation.
In both directions you therefore need a lawyer who understands both legal systems and can communicate in both languages. A bilingual contract and knowledge of both systems considerably reduce the risk of misunderstandings.
How to Choose the Right Lawyer
When selecting a lawyer for a property transaction, focus on a few key criteria. Specialisation: not every lawyer practises real estate law; look for someone who handles property transactions regularly. Experience: ask about the number of transactions completed and for references. Transparent pricing: the lawyer should tell you in advance what their services will cost. Availability: speed of response matters, especially in time-sensitive situations. And for cross-border purchases, of course, language skills and familiarity with the foreign legal system.
How We Can Help
Our law office specialises in property transactions in the Czech Republic and in cross-border purchases involving Austria. Mgr. Barbora Surmanová, attorney-at-law registered with the Czech Bar Association (reg. no. 13930), has practised real estate law since the start of her career as an attorney in 2006. We offer complete legal support: from property due diligence and drafting the purchase contract to escrow of the purchase price and representation in the land registry proceedings. Thanks to fluent German and knowledge of both legal systems, we are well placed to handle cross-border transactions.
Planning to buy property? Contact us for a non-binding initial consultation. Find out more on our Legal Services page.
Updated August 2026.
