What Legal Obstacles Can Prevent Buying Property and How to Resolve Them

What Is a Legal Obstacle and When Does It Really Prevent a Sale

A legal obstacle is a fact that limits or complicates the transfer of ownership but usually does not rule it out. Typically, it is something that needs to be clarified, removed, or addressed in the contract before the transfer.

Ownership of a property transfers only through registration with the Czech Land Registry (Katastr nemovitostí). The registry office cannot decide on registration before 20 days have passed since notice to the owner (Land Registry Act No. 256/2013 Coll.) and the average registration time is approximately 22 days. That is why the property's condition and ownership are verified before signing, not at registration.

Truly insoluble situations are rare exceptions only—for example, when someone whose consent is required by law refuses to approve the sale and cannot be replaced. The other situations described below are routine legal work.

Unclear or Disputed Ownership

Unclear ownership is resolved by providing a legal title, usually a probate decree, or by agreement of all entitled parties. Typical situations include:

• Unfinished probate proceedings. Until it is clear who the heir is, the property cannot be transferred. After the proceedings end, it is sold on the basis of the court's decision.
• Co-ownership. Each co-owner may sell their share. The general right of first refusal of co-owners was abolished in 2020; it applies only for 6 months from the creation of co-ownership if the share arose by inheritance (Section 1124 of the Civil Code No. 89/2012 Coll.). See more at property share purchase.
• Marital property. For a family home where spouses live, the consent of the other spouse is usually required (Civil Code No. 89/2012 Coll.).
• Unregistered state in the Land Registry. An incorrect or outdated entry is corrected based on documents or with the Land Registry Office.

Easements, Mortgages and Debts

Entries in the Land Registry are either transferred or removed upon sale; they do not stop the sale on their own. It is important to know about them in good time.

• An easement (věcné břemeno) (such as a right of way or right of lifelong residence) remains with the property even after transfer. It is resolved by factoring it into the price or by agreeing to its termination with the entitled party.
• A mortgage or loan lien (zástavní právo) is removed after the debt is paid. With a property purchase, the debt is typically paid directly from the purchase price through attorney escrow, so the seller does not need to arrange the amount in advance.
• Enforcement (exekuce). Sale is possible but requires negotiations with the enforcement officer and creditors; it is governed by the Enforcement Act No. 120/2001 Coll. Details can be found on the property purchase in enforcement proceedings page. In forced sale, the minimum bid is two-thirds of the eventual price (Section 336e of the Civil Procedure Act No. 99/1963 Coll., as applied to enforcement), so voluntary sale is often worth exploring first.
• Insolvency. After insolvency proceedings begin, dealings with assets are restricted (Insolvency Act No. 182/2006 Coll.) and sale requires cooperation from the insolvency administrator or court.

Unpaid Fees, Tenants and Construction Discrepancies

Arrears and tenancy relationships are calculated and settled before transfer or are addressed in the purchase contract.

• Arrears (nedoplatky) for utilities, services, building fund contributions or property tax are identified and paid from the purchase price if necessary. The transfer tax on immovable property was abolished (Act No. 386/2020 Coll.), so the buyer does not pay it.
• Tenants (nájemci). A lease typically passes to the new owner upon property transfer (Section 2221 of the Civil Code No. 89/2012 Coll.). The status of tenancy relationships is therefore addressed in the contract; for entire buildings see purchase of multi-unit residential buildings.
• Unlicensed construction or discrepancies from reality. This is assessed under the Building Act No. 283/2021 Coll. and previous regulations. Solutions usually involve a retroactive permit, registration of the building in the Land Registry, or factoring the condition into the price.

Tax implications of the sale (for example, the holding period test or use of the property for residence) are governed by the Income Tax Act No. 586/1992 Coll. The Czech Tax Administration or a tax adviser can assess your specific situation.

Boundary Disputes and Neighbour Rights

A boundary dispute is resolved by surveying and a geometric plan, or by agreement with the neighbour.

If actual use does not match the cadastral map, a surveyor will mark out the boundary and the change can be recorded in the Land Registry. If the neighbour agrees, it is an administrative step. If not, the court decides, which takes longer. In that case, options are either to sell the property at a price reflecting the unresolved part, or to defer the sale pending agreement. Whether and how this can be done depends on the specific circumstances and cannot be promised in advance.

It is also useful to verify access to the property. A missing right of way (právo cesty) is resolved by establishing an easement (věcné břemeno).

How Legal Service Resolves Obstacles When Purchasing

When purchasing, the legal service verifies obstacles before signing and resolves them as part of the transaction at no additional cost. Details can be found on the complete legal service page.

1. Verification of the Land Registry entry, entries and property documents.
2. Written offer within 24 hours with a detailed breakdown of the calculation; for multi-unit residential buildings, a revenue-based valuation and offer within 48 hours.
3. Proposed solution for each obstacle: removal of the lien, agreement with co-owner or entitled party, proof of inheritance.
4. Purchase contract and payment through attorney escrow. Cash payments are limited to CZK 270,000 per day (Act No. 254/2004 Coll.), so professional property purchases are conducted via bank transfer.
5. Deposit of up to CZK 1,000,000 upon signing the purchase contract and filing the application for Land Registry registration.

The offer is non-binding and you may withdraw before signing the contract. The entire process is described on the how it works page. Legal issues alone are not a reason to reject the purchase, but the speed depends on how many people and authorities must be involved.

What to Do Now

The quickest way is to gather documents and have the property assessed without obligation.

• Prepare a current Land Registry extract or Land Registry entry number and the property's address.
• Find the probate decree, purchase or gift deed and loan or mortgage contracts.
• Write down what you know about debts, tenants, easements or disputes with neighbours.
• Check whether a co-owner or spouse needs to consent to the sale.

You can get a non-binding offer or situation assessment through the form below the article. Further answers can be found in the frequently asked questions.