Getting the Deal Through: Real Estate 2013 – Czech Republic

Achour & Partners has contributed to the latest edition of Getting the Deal Through – Real Estate 2013, published by Law Business Research Ltd. The book covers key considerations for real estate transactions in 30 jurisdictions. Partner Gabriel Achour co-authored the Czech Republic chapter.

The book provides an overview of real estate laws in 30 countries, with chapters contributed by leading law firms in each jurisdiction. The purpose of the guide is to provide an overview of the various factors affecting real estate transaction across various jurisdictions - from due diligence to applicable laws and regulations to customary real estate deal terms.

The chapter provides a business perspective to owning and investing in real estate in Czech Republic, and clarifies the law for foreign investors in terms of their liability, choice of law, and what to consider when making investments in Czech Republic. More specifically, the Czech chapter covers the following:

• An overview of Czech legal system, relevant to an investor, looking specifically at enforcement of certain contracts evidence requirements.
• The legal requirements for documents recording conveyance, including fees, stamp duty, withholding tax calculations, and registration locations.
• The factors that a foreign investor should take into account when considering a real estate investment in Czech Republic.
• Legal liabilities that an owner of real estate may face, with particular attention to strict liability, tort liability, and liability to subsequent owners. 
• The jurisdiction of courts over real estate disputes.
• A general summary of investment entities, which ones (if any) are available to foreign investors.
• The contract of sale and its typical provisions, including the typical down payment percentage and general warranties and representations usually given by the seller.
• A focus on leases and mortgages.
• Due diligence and the method of title searches, statutory priority to recorded instruments, protecting oneself against bad title, and the necessity and process of structural and environmental reviews.

Reproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through - Real Estate 2013, (published in November 2012; contributing editor Sheri P Chromow of Katten Muchin Rosenman LLP). For further information please visit www.GettingTheDealThrough.com.