Property defects before sale in Czechia: how to spot them and how they affect a direct-purchase offer

Why you should deal with defects before offering the property

Owners often hesitate to offer a property with damp, a cracked wall or an unclear building history. But a last-minute repair will not hide a defect: the buyer will find it during the viewing, in the documents, or later when using the property. It is better to know what is wrong with the property and to say so openly.

We divide defects into technical (the condition of the building and its utilities) and legal (the state of the entry in the Czech Land Registry (katastr nemovitostí), permits, and encumbrances on the property). Both groups affect the price and the course of the sale.

Checklist of technical defects

Walk through the property in daylight and look out for the following:

• Damp: stains and mould on walls, peeling plaster, a musty smell in the cellar or on the ground floor, damp at the base of the walls.
• Structure: diagonal cracks or cracks widening upwards, uneven floors, windows and doors that stick, a sagging ceiling or roof frame.
• Roof: leaks, damaged roofing, water marks on attic ceilings.
• Utilities: age of the electrical wiring, aluminium wires, unprotected fuses and breakers, leaking or corroded water and sewage pipes, the condition of the chimney and heating system.
• Windows, façade, insulation: draughts, crumbling plaster, missing thermal insulation.
• Pests and timber: infestation by wood-destroying fungi or insects, especially in beams and floors.

You do not need to be an expert. Simply note what you see and take photographs. If you have doubts about the structure or damp, it is sensible to call in a building surveyor. For how condition affects value, see our article on estimating the price of a property.

Checklist of legal defects

Legal defects are often more serious for a sale than flaking plaster, because they can delay or complicate the sale.

• Mismatch with the Land Registry: a building stands but is not registered, or has a different use, built-up area or land type. You can check the current data on an extract from the Land Registry; see our guide to the Land Registry. Registration is governed by the Land Registry Act No. 256/2013 Coll.
• Unauthorised buildings and later alterations: an extension, loft conversion, garage or retaining wall built without a permit or notification. Permit requirements are set by the Building Act No. 283/2021 Coll.; for an unauthorised building the building authority (stavební úřad) may open proceedings that end either in retrospective approval or in an order to demolish.
• Mortgages and restrictions: a bank's pledge (zástavní právo), an enforcement order (exekuční příkaz), an easement (věcné břemeno), tenancies or a right of lifelong residence. Depending on the situation, a direct purchase of a property under enforcement may help.
• Co-ownership: the consent of all co-owners is needed to sell the whole property. The general pre-emption right of co-owners no longer applies; a share acquired through inheritance is protected by a pre-emption right for six months from the creation of the co-ownership (Section 1124 of the Civil Code, Act No. 89/2012 Coll.).

What you must tell the buyer and what concealment risks

The Civil Code (Act No. 89/2012 Coll.), in its provisions on rights from defective performance (Section 1914 et seq.), proceeds from the principle that the seller is responsible for the item having the agreed properties and being free of defects. The practical consequence is simple: state any defect you know of during negotiations and in the contract. A defect of which the buyer was properly informed, and which the contract takes into account, is priced in up front. A concealed defect, by contrast, can become grounds for a dispute, a price reduction or withdrawal from the contract.

This does not mean you have to repair the property. The obligation concerns disclosing defects, not removing them. Repairs before a sale are your decision and are often uneconomic if the scope of work cannot be reliably estimated in advance. Nor do we promise that every defect will have the same effect; it always depends on its nature and extent.

Recommendation: draw up a list of defects, attach photographs and documents (building permit, final approval certificate (kolaudace), inspection reports, Land Registry extract) and submit them with your request for an offer.

How defects are reflected in the written offer

With a direct purchase you receive a written offer within 24 hours with an itemised calculation. For apartment buildings, an income-based valuation is carried out and the offer follows within 48 hours. The breakdown shows what the price consists of and how the condition of the property, the expected cost of remedying defects or resolving legal obstacles contribute to it. This is not a hidden deduction: you can judge whether the calculation is acceptable to you.

We do not promise specific discounts in advance, because they depend on the extent of the defect, the location and the state of the market. You can get a rough idea through our free online property valuation. The offer is non-binding and you can withdraw until the contract is signed.

Step by step

1. Obtain a current Land Registry extract and compare it with reality.
2. Go through the property using the technical checklist and take photographs.
3. Check whether permits and final approval exist for extensions and alterations.
4. Find out whether the property is subject to a mortgage, enforcement, an easement or a tenancy.
5. Send a description including all defects and request an offer.
6. Compare the itemised calculation and decide whether to accept the offer.

Legal services and lawyer's escrow are included in the price, with no fees; see our complete legal service. The money is therefore paid by bank transfer through escrow, not in cash.