Building Without a Building Permit: How It Is Assessed and Valued at Acquisition

Can a Building Without a Building Permit Be Sold at All?

Yes. The Czech Civil Code (Občanský zákoník č. 89/2012 Sb.) does not prohibit the transfer of immovable property merely because building documents are missing. Title is transferred by registration in the Czech Land Registry (katastr nemovitostí) according to the Land Registry Law (Katastrální zákon č. 256/2013 Sb.), and this is possible if the building is registered in the registry or if a legal relationship to the land can be recorded.

The real problem is not in the contract itself, but in what the buyer acquires. If a building violates building regulations, the new owner may bear responsibility for its condition after purchase. That is why any acquisition begins by establishing what situation we are dealing with.

Three Different Situations That Are Often Confused

The term 'without papers' describes several different situations in practice. Distinguishing between them is crucial for pricing.

• Old buildings treated as lawful. Very old buildings erected long before the present building control system was introduced are considered legally existing even if no permit has been retained, provided certain conditions are met. It is advisable to verify this with the building authority and in archives.
• Building registered in the Land Registry but without documents. Registration in the Land Registry itself does not mean the building is permitted. It is merely an official record.
• Unlawfully constructed building or extension. Built without a permit or in breach of it. This is where legalisation comes in, or there may be an order to remove the structure.

Often all three situations occur in a single property: the original cottage is old and unproblematic, but later an extension, outbuilding or attic conversion was added without a permit.

What Building Law No. 283/2021 Says

Building Law No. 283/2021 (Stavební zákon č. 283/2021 Sb.) sets out how the building authority handles structures built without the required permit. A key provision is the possibility of retrospective (subsequent) legalisation. The owner applies for it, and the authority assesses whether the building complies with requirements such as the local development plan, neighbours' rights, and health and environmental standards.

Importantly, retrospective legalisation is not a right—it is discretionary. If the building fails to meet requirements and cannot be remedied, the authority may issue an order for its demolition. This is a risk the buyer must factor in. The specific procedure and conditions always depend on when the building was constructed, its type and location. We recommend reviewing the current law and having the case assessed by a legal professional.

The assessment also takes account of whether the building stands on land that the owner actually holds. A building on someone else's land or land with unclear ownership is a quite different matter from a cottage on your own plot. For more on land acquisition, see Land Acquisition.

What Can and Cannot Be Legalised

In general, buildings that meet local planning conditions, do not encroach on others' rights and are technically safe are easier to legalise. More difficult are buildings:

• in non-buildable areas or protected zones,
• encroaching on neighbouring land,
• with structural defects that pose a safety risk,
• without documented ownership of the land.

Legalisation typically involves surveying the building, obtaining plans showing its actual state and, if needed, a structural assessment. Registration of the building or changes in the Land Registry (katastr nemovitostí) is governed by the Land Registry Law (Katastrální zákon č. 256/2013 Sb.). For more details, see the guide Czech Land Registry.

The outcome of legalisation cannot be guaranteed in advance. An honest assessment sounds more like 'based on available information, legalisation is likely' or 'uncertain', never 'certain'.

How Buildings Without Permits Are Valued During Acquisition

Valuation is based on the value of the land and building in normal condition, from which risks and costs are deducted. For a building without permits, we typically account for:

• estimated costs for surveying, documentation and proceedings at the building authority,
• time required for legalisation,
• uncertainty of the outcome—the possibility that the building cannot be legalised,
• the building's physical condition and necessary repairs,
• the land value, which often forms a significant part of the price for rural properties.

That is why an offer for an old cottage without permits differs from an offer for a building with a completion certificate. It is not a penalty for missing documents; it reflects the risk the buyer takes on. We will submit all calculations in writing with a detailed breakdown, you will receive an offer within 24 hours, and it is non-binding. Basic guidance is available through free online property valuation, but properties without permits always require additional detail.

How Acquisition Proceeds Step by Step

The process for an old cottage or house without permits does not differ greatly from standard acquisition—it simply requires more time for legal review.

1. Send the address, title deed number (list vlastnictví) and description of the property including any known extensions or conversions.
2. We check the Land Registry, building documentation and land ownership.
3. You receive a written offer with a detailed breakdown of how the price was calculated.
4. When signing the purchase agreement, a deposit of up to 1,000,000 CZK is possible. Funds are transferred electronically via a lawyer's escrow account, since cash payment is restricted by law to 270,000 CZK per day.
5. The application for registration is submitted to the Land Registry. Ownership transfers only upon registration; the Registry must not decide before 20 days from notice to the owner, with an average time of about 22 days.

Legal services and escrow are included at no extra fee. You may withdraw before signing. Full details of the process are on How Acquisition Works and Complete Legal Services. Properties of this type are handled, for example, through Cottage and Smallholding Acquisition.

What to Prepare and What to Watch Out For

If you are considering selling, gather your title deed (list vlastnictví), a copy of the cadastral map, any older plans, photographs and information about when and what was added. Conceal nothing; hidden defects later lead to disputes and liability under the Czech Civil Code (Občanský zákoník č. 89/2012 Sb.).

Tax consequences of sale depend on the Income Tax Law, particularly how long you have owned the property and whether it is your home. Verify your specific situation with the Czech Tax Authority (Finanční správa) or a tax adviser. Acquisition tax on real estate was abolished by law No. 386/2020 Sb.