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When the money arrives in a property buyout: deposit, escrow and Land Registry registration

Published 11 October 2026

The full purchase price does not usually arrive at the moment of signing. When you sign the purchase agreement (kupní smlouva), you receive a deposit of up to CZK 1,000,000; the remainder is held in lawyer's escrow (advokátní úschova) and paid out once ownership is registered in the katastr nemovitostí (Czech Land Registry). The Land Registry may not decide on registration until 20 days after notifying the owner, and registration takes about 22 days on average.

Summary

  • When you sign the purchase agreement you receive a deposit of up to CZK 1,000,000; the rest of the price is handled through lawyer's escrow.
  • Ownership passes only on registration in the Czech Land Registry; the office may not decide earlier than 20 days after notifying the owner, and registration takes about 22 days on average.
  • The remainder of the purchase price is paid out after registration, under the terms of the escrow agreement.
  • Under Act No. 254/2004 Coll., cash payments are limited to CZK 270,000 per day, so a reputable buyout is paid by bank transfer through lawyer's escrow.
  • Legal services and lawyer's escrow are included in the price, with no fees; the offer is non-binding.

Will the money reach my account immediately in a buyout?

A quick buyout does not mean the entire purchase price arrives the minute you sign. It means you receive an offer quickly (in writing within 24 hours, with a breakdown of how the price was calculated), a deposit of up to CZK 1,000,000 is provided already when the purchase agreement is signed, and the remainder of the price is handled through lawyer's escrow. The reason is legal: ownership of a property does not pass on signing the contract, but only on registration (vklad) in the katastr nemovitostí (Czech Land Registry).

Payment is therefore split into two parts. This also works in the seller's favour in terms of security: the money does not travel outside anyone's control, but passes through lawyer's escrow, which releases it under terms agreed in advance.

Payment timeline step by step

The whole process looks like this:

  1. Offer. After you submit an enquiry, you receive a written offer within 24 hours, including a breakdown of how the price was calculated. The offer is non-binding.
  2. Preparing the contracts. A lawyer prepares the purchase agreement and the terms of the lawyer's escrow. You can withdraw from the deal at any time before signing.
  3. Signing and deposit. When you sign the purchase agreement, you receive a deposit of up to CZK 1,000,000. The remainder of the price is governed by the contract and the lawyer's escrow.
  4. Application for registration. The application for registration of ownership is filed with the Land Registry office.
  5. Decision on registration. The Land Registry may not decide earlier than 20 days after notifying the owner. Upon registration, ownership passes to the buyer.
  6. Release of the escrow. After registration, the remainder of the price is paid out under the terms of the escrow agreement.

You can also find the exact procedure and realistic timings in the overview How a property buyout works.

The deposit at signing: what it is for

The deposit of up to CZK 1,000,000 is a part of the purchase price that you receive already when you sign the purchase agreement. It is useful when you need to settle obligations quickly, arrange alternative housing or cover removal costs. The specific terms of the deposit are set out in the contract before you sign, and because you can withdraw until signing, you have time to read them carefully.

A common doubt is whether "cash" really means cash. This is explained on the page about how a buyout "for cash" really works.

Lawyer's escrow: where the rest of the price is held

Escrow protects both parties. The buyer does not have to pay the seller blindly before the entry in the Land Registry. You, in turn, have assurance that the money is handled under the agreed terms. The lawyer releases it when the agreed event occurs, typically once registration of ownership has been completed.

Lawyer's escrow and the related legal services are included in our price, with no fees. What the legal service covers is described on the page about complete legal services.

Why registration in the Land Registry takes at least 20 days

Under the Cadastral Act No. 256/2013 Coll., the Land Registry may not decide on registration until 20 days have passed since the owner was notified. This means ownership cannot be transferred before that period expires. The average registration time is about 22 days; in an individual case it may differ.

In practical terms: the remainder of the price is paid out only once registration is complete, i.e. roughly three weeks or more after the application is filed. Until then you have the deposit at your disposal. How the Land Registry works from an owner's perspective is explained in the guide to the Czech Land Registry.

What can prolong registration

  • missing or incorrect documents attached to the application,
  • unresolved mortgages (zástavní práva) or other legal defects that must be settled before the transfer,
  • the Land Registry office's workload.

This is exactly why the legal status of the property is checked before signing, and any encumbrances are dealt with already when the contract is being prepared.

Why this is not a cash payment

The phrase "for cash" is often understood as a suitcase of banknotes on the table. However, Act No. 254/2004 Coll. on restricting cash payments limits cash payments to CZK 270,000 per day. The purchase price of a property is usually higher, so a reputable buyout is paid by bank transfer through lawyer's escrow.

This is an advantage for you too. A bank transfer is traceable and avoids the risks of carrying and verifying a large amount of cash.

What else affects how much of the price you keep

Mortgages and debts secured on the property can be paid from the purchase price if the contract provides for it. The real estate acquisition tax (daň z nabytí nemovitých věcí) was abolished by Act No. 386/2020 Coll., so neither the seller nor the buyer pays it. For income tax on the sale of a property, the general rules apply, such as the time test (the holding period) or use of the property as your home. Please verify your specific situation with the Financial Administration (Finanční správa) or a tax adviser.

If you need the money as soon as possible, start with a non-binding offer: the page on immediate property buyouts describes how the offer and the deposit fit together.

Frequently Asked Questions

Will I receive the full purchase price on the day of signing? +

Usually not. On the day you sign the purchase agreement you receive a deposit of up to CZK 1,000,000; the remainder of the price is paid from lawyer's escrow once ownership is registered in the Czech Land Registry (katastr nemovitostí).

How long does registration in the Land Registry take? +

The Land Registry may not decide earlier than 20 days after notifying the owner (Act No. 256/2013 Coll.). The average registration time is about 22 days.

Is it safe that the rest of the price is held in lawyer's escrow? +

Escrow protects both parties. The money is paid out under terms agreed in advance, typically after ownership has been registered. The escrow is included in our price, with no fees.

Why won't I be paid the full amount in cash? +

Act No. 254/2004 Coll. limits cash payments to CZK 270,000 per day. A property's purchase price is usually higher, so a reputable buyout is paid by bank transfer through lawyer's escrow.

Can I still change my mind after receiving the offer? +

Yes. The offer is non-binding, and you can withdraw from the deal at any time before signing the contract.

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