What happens to your deposit if you change your mind after signing the purchase agreement
Published 12 November 2026
Before signing the purchase contract (kupní smlouva), any offer is not binding and you can withdraw without consequences. Once you sign, you are bound by the contract terms and the Czech Civil Code (Občanský zákoník č. 89/2012 Sb.), which determines what happens to your deposit. The purchase price flows through attorney escrow (advokátní úschova) and ownership transfers only upon registration with the Czech Land Registry (katastr nemovitostí).
Summary
- Before signing the purchase contract (kupní smlouva), any offer is not binding and you can withdraw without any issues.
- Once you sign, you are bound by the contract; whether you can withdraw depends on the contract terms and Czech law.
- Your deposit of up to CZK 1,000,000 is paid at signing; the remaining purchase price goes through attorney escrow (advokátní úschova).
- You remain the owner until the property is registered with the Czech Land Registry (katastr nemovitostí); signing the contract does not transfer ownership.
- Have a lawyer explain your options and the contract terms before you sign.
Before signing, nothing is binding
Any offer to purchase is not binding, and you can withdraw from it at any time before signing the purchase contract (kupní smlouva).
You will receive a written offer with a detailed calculation within 24 hours, or within 48 hours for residential rental buildings (činžovní dům), as these require income-based valuation. You can review the offer, compare it, and seek advice. Nothing binds you until you sign the contract. The complete process from offer to signature is described on our page How property purchase works.
Therefore, the most important decision is made before signing, not after. If you are hesitant, postpone the signature.
What changes when you sign the purchase contract
By signing, you create a legally binding relationship and both parties are required to perform as agreed.
The purchase contract is governed by the Czech Civil Code (Občanský zákoník č. 89/2012 Sb.). A contract cannot be unilaterally terminated simply because one party changes their mind. You can withdraw only if:
- both parties agreed in the contract to allow withdrawal (for example, under certain conditions or within a timeframe), or
- the law permits it, typically when there is a material breach by the other party (§ 2001 et seq. of the Civil Code).
A seller's mere change of mind is generally not a legal ground for withdrawal. Therefore, do not expect an automatic cooling-off period after signing, and always verify the contract terms before you sign.
Your deposit after signing: what happens
A deposit is a payment towards the purchase price that you receive at the time of signing and is credited towards the final price.
The deposit at signing can be up to CZK 1,000,000. What happens to it when the contract ends depends on how the contract describes it. The Czech Civil Code also governs earnest money or forfeitable deposits (závdavek, § 1807 et seq.), which may have different consequences than a regular deposit if the contract is breached. Therefore, the contract should clearly specify:
- whether it is a standard deposit or earnest money (závdavek),
- under what conditions it will be returned,
- when and to whom it will be returned,
- what consequences withdrawal by either party carries.
If the contract is terminated by withdrawal, the parties typically return to each other what they have given. The specific outcome always depends on the contract wording, so without seeing the contract text, a general answer cannot be given.
Attorney escrow and cashless payment
The remaining purchase price is placed into attorney escrow (advokátní úschova) and is paid out only after the agreed conditions are met.
Reputable property purchases are conducted without cash. Cash payments are also limited to CZK 270,000 per day (Law No. 254/2004 Sb.), so larger amounts should not be paid in cash. Escrow protects both parties: the money is kept separate from both buyer and seller and is released according to the escrow agreement, typically after the property is registered. Attorney escrow and legal services are included in the price, with no additional fees. Learn more in our section on Complete legal services for property purchase.
When does ownership transfer
You remain the owner of the property until your ownership right is registered with the Czech Land Registry (katastr nemovitostí), not upon signing the contract.
Ownership of a property is established by registration with the Czech Land Registry. The registration authority cannot decide on the registration earlier than 20 days after notifying the owner (Czech Land Registry Act No. 256/2013 Sb.). The average registration period is approximately 22 days. During this time:
- the signed contract is binding,
- your deposit has already been paid and the remaining purchase price is in escrow,
- the property formally still belongs to you,
- after registration, the escrowed funds are released and ownership transfers to the buyer.
More about how the Land Registry works can be found in our guide Czech Land Registry.
How to avoid problems
The most reliable protection is to read the contract before signing and have a lawyer explain it to you.
| Stage | Legal status | Can you withdraw? |
|---|---|---|
| Before signing | Non-binding offer | Anytime, without consequences |
| After signing, before registration | Binding contract; you remain the owner | According to contract and law (§ 2001 et seq. Civil Code) |
| After registration | Buyer is the owner | Only for legal or contractual reasons |
Before signing, clarify in particular the conditions for deposit return, deadlines, and consequences of withdrawal. Tax implications of the sale (holding period test, residential use) are covered by Law No. 586/1992 Sb.; verify them with the Czech Tax Administration or a tax adviser. The acquisition tax on real property was abolished by Law No. 386/2020 Sb.
What to do now
If you are considering selling, request a non-binding offer and review the contract with a lawyer before you sign.
- Prepare information about the property, the title deed (list vlastnictví), and details of any mortgages or enforcement proceedings.
- Fill out the form below the article to receive a non-binding offer or assessment.
- Review the calculation breakdown and the contract draft, and ask about the deposit and escrow terms.
- Sign only when you are certain. Until then, you can withdraw from the offer.
Basic information is also available on our home page.