How does it work with sales

1. Who can own the property?
2. Types of ownership in the Czech Republic
3. Financing = Mortgages
4. Buying a property Step-By-Step
5. Buy 2 Let Package by Happy House Rentals & Property management

1. Who can own the property?

   Properties in the Czech Republic can only be owned by Czech residents or citizens of European Union with EU card or residential permit and citizens of United States of America with the residential permit or by heirs of any nationality. HHR can arrange all types of residential permits and EU cards quickly and without vaste of your time. Buyers coming from other than mentioned countries or ones that do not have the residential permit can overcome this difficulty through their 100% owned company, a liability limited company, which is in Czech called S.R.O. Happy House Rentals can set you up your own Ltd. or you can buy ready-made one. For more information about prices, have a look at the HHR legal services or contact us.

2. Types of ownership in the Czech Republic
   1. Private/Personal ownership

      The most common type of ownership. By buying flat that is privately owned, the buyer becomes owner of the particular flat and is registered in the Cadastral office as the owner. This type of ownership allows buyers payment with 100% mortgage.

   2. Cooperative ownership

      This type of ownership is a result of transfer of the municipality owned properties into personal possession of the tenants. Tenants of the building to which municipality allowed privatization often cooperatives in order to buy the whole building through mortgage. Each tenant then becomes owner of a part of the cooperative and gains a lease contract to the concerned flat. Lease is concluded between the tenant and the cooperative of which he is partial owner. The rents are not high, they usually correspond to the service charges and fund of repairs charge of the building. (approximately 100 Euro subject to the size of the flat etc.) The buyer does not own the flat as such but only a share in the cooperative. Therefore, the buyer is not listed in the Cadastral office and as owner of the whole building remains the cooperative until the time that the debt is paid up; loans are most usually for 10 years. In case of acquisition of a share in the cooperative, the foreigner does not need any permission, visa or company though which he should acquire the share in the cooperative. After the loan is paid up, flats can be transferred into the personal ownership.

      Cooperatively owned flats can be only financed through mortgage if the building will be transferred within a year into personal ownership or the buyer has to have another property which bank would use as a guarantee.

3. Financing = Mortgages

   The purchase can be financed by cash payment or by a mortgage. The combination of purchase following the lease is not common in the Czech Republic. Payment is usually delivered to the seller after the Proposal for registration of the buyer´s ownership is submitted to the particular Cadastral Office.

   Banks in the Czech Republic offer variety of products which differ slightly from each other. Contact our mortgage specialists, to have your mortgages tailored following your criteria. We cooperate with mortgage brokers offering whole portfolio of bank products in Czech Republic, so you save time! Our partners will help you choose which bank product suits your needs best after only 1 meeting.

   Basic info: you can get 100% mortgage, interest rates are between 3,7% - 4,5%, the longest term you can get is currently 40 years.

4. Buying a property Step-By-Step

   Following the selection of the property one likes, following procedure can be expected:

   1. Reservation contract – reservation fee up to 5% of the purchase price will be required
   2. Future purchase contract – this document binds buyer and the seller under specific conditions – i.e. when the purchase price has to be paid, when the flat should be handed over etc.
   3. Mortgage arrangements
   4. Purchase contract
   5. Registration in the Cadastral office

   All the legal documents are prepared by Happy House Rentals attorney, both parties (buyer and seller) can of course review and comment on them to implement all agreed demands. The mortgage and the paperwork with banks or Cadastral is solved by Happy House Rentals, you do not need to worry about anything. We serve and save your time!

5. Buy 2 Let Package & Property management by Happy House Rentals

   This is an extra service for you if your main intention is to buy a property in Prague as an investment and you don’t want to take care of anything, you just expect to have the money wired in your bank account at the end of month. Happy House Rentals offers our team service once again:

   1. HHR will arrange preparation of the apartment for letting: reconstruction, changes, interior design, furnishing and equiping, necessary upkeep and anything you might demand.
   2. HHR will find you tenants, will bring them in and out.
   3. HHR will provide property management, take care of problems and repairs, collect rents and ather charges, take care of terms and obligations of tenants. We know how to make you as well as your tenant happy.

   Fore more detailed information don’t hesitate and contact our Property management department .

Do you have any legal questions? Ask us....

Have a look at our legal services we can provide.