How to Secure a Property Sale and Prevent Buyer Claims
Published 5 November 2026
You cannot eliminate liability for defects entirely, especially those you knew about and concealed; however, you can significantly limit it by determining the actual condition of the property before sale, describing it truthfully in the purchase agreement, and providing documented evidence. Once the buyer is aware of the property's condition and confirms this in writing, they have no grounds to claim defects were hidden, and any dispute rests on written documentation rather than speculation. This approach is based on the Czech Civil Code No. 89/2012 Sb. and applies equally whether selling a single unit or conducting a phased sale of an apartment building.
Summary
- You cannot completely eliminate liability for defects, particularly those you knew of and concealed; however, you can reasonably limit it.
- The foundation of protection is a documented record of the property and building's condition before sale: structure, installations, utilities and common areas.
- The purchase agreement must describe the condition specifically, list known defects and include a handover protocol.
- Energy Performance Certificate and inspection reports are provided as part of the documentation; these matters are not resolved after the sale.
- Payment via a lawyer's escrow account and awaiting registration at the Czech Land Registry protect both parties against disputes over money and ownership.
What Is Realistic to Secure and What Is Not
A seller cannot escape liability for everything, but can prevent most disputes by not hiding defects and proving the property's actual condition.
When buying immovable property, the buyer has rights for defective performance under Sections 2161 et seq. of the Czech Civil Code No. 89/2012 Sb. The time limit for claiming a defect in immovable property under Section 2165 is longer than for moveable property. However, if the buyer knew about a defect when the contract was signed, their potential claim is on much weaker ground. Conversely, a defect that the seller knew about and concealed can be challenged by the buyer using remedies for fraud and misrepresentation (Sections 583 and 587 of the Civil Code).
Practical conclusion: the goal is not to 'exclude everything' but to ensure that the buyer knows the true condition, confirms it in writing, and that this is provable.
What to Investigate and Confirm Before Sale
Before offering the unit for sale, you must have mapped out the technical, structural and legal condition, as these are what lead to complaints later.
- Structural condition: roof, exterior walls, dampness, structural integrity, condition of ceilings and stairways, any cracks or previous repairs. Have the findings recorded in an expert assessment or dated photographic documentation.
- Installations and utilities: electrical wiring, water and drainage systems, gas, heating, chimneys. Verify that they are functioning and that inspection certificates exist.
- Alterations and renovations: whether they were carried out with building permission or notification and whether they match the documentation. The conditions are governed by the Building Act No. 283/2021 Sb.; older buildings are also assessed under the previously applicable rules.
- Legal status: entries in the Czech Land Registry (Katastr nemovitostí), mortgages, easements and tenancy agreements. Verify the information in the publicly available registry extract.
- Common areas and building: your share in common areas, contributions to the maintenance fund, any building debts and planned investments.
If any documents are missing, it is better to discover and resolve this before the sale rather than after a complaint. This type of preparation is covered by our Audit and Plan service.
What Should Be in the Purchase Agreement
The purchase agreement protects the seller best when it describes the property's condition specifically and truthfully, not with general statements.
- Description of condition: state what condition the unit is being sold in (including wear and tear and known defects), and that the buyer was given the opportunity to view it.
- Seller's declaration: a truthful statement about the legal status, absence of debts and encumbrances other than those listed, and that there are no other known defects. A false statement is a risk, not protection.
- Known defects: list them and state that the buyer knows about them at the time of purchase and accepts them. A defect the buyer was aware of typically does not give them the same claim.
- Scope of liability: liability for defects may be contractually limited within the bounds of law, but not for defects the seller concealed. Have the wording reviewed by a lawyer; the phrase 'sold as seen' alone is not sufficient.
- Fixtures and equipment: what stays and what is removed, including meters and keys.
- Payment and registration: escrow, payment deadline and mutual cooperation in completing the registration.
Documents to Hand Over, Energy Certificate and Inspections
Complete and signed handover documentation is the best proof that the buyer received all information.
| Document | Why It Is Provided |
|---|---|
| Extract from the Czech Land Registry or owner's statement | Proves the legal status and definition of the unit |
| Energy Performance Certificate | Mandatory as part of selling a building or unit under the Energy Management Act No. 406/2000 Sb.; confirm whether it applies to your unit |
| Inspection certificates (electrical, gas, chimney) | Demonstrate the technical condition of installations at that point in time |
| Building documentation and permissions | Demonstrate the legality of alterations |
| Documents on deposits, maintenance fund contributions and accounts | Protect against disputes over debts and costs |
| Handover protocol | Records the property's condition, utility meter readings, keys and the buyer's acknowledgement |
Have the Energy Performance Certificate prepared before publishing the listing so that the information in the advertisement and contract match. Inspections are not in themselves a guarantee of soundness, but they record the condition of installations at the time of inspection. If an inspection reveals a defect, either repair it or list it in the contract as a known defect.
Payment, Registration and Insurance
Further disputes often arise over money and the timing of transfer, so these must be handled with the same care as the property's technical condition.
Ownership passes only upon registration at the Czech Land Registry (Katastr nemovitostí). The land registry authority cannot decide before twenty days have elapsed from notifying the owner (Czech Land Registry Act No. 256/2013 Sb.); the average registration time is approximately 22 days. Until then, it is advisable to keep the funds in a lawyer's escrow account with clear conditions for release. Cash payment is limited to 270,000 CZK per day (Act No. 254/2004 Sb.), so payments are usually made by bank transfer.
As for insurance, standard property insurance does not automatically cover the seller's liability for defects in the sold unit. Therefore, verify specific options with your insurer or insurance broker and do not rely on general assurances. Confirm the tax implications of the sale (such as the holding period or use as a residence) with the Czech Tax Administration or a tax adviser under the Income Tax Act No. 586/1992 Sb.
What to Do Now
The wisest approach is to begin gathering documentation and obtaining an independent assessment of the property's condition before determining the price and signing the contract.
- Gather the land registry extract, owner's statement, building documentation and any available inspection reports.
- Have the property's technical condition assessed and documented with dates.
- Obtain the Energy Performance Certificate and arrange any missing inspections.
- Have a lawyer review the purchase agreement and handover protocol.
- Arrange payment via a lawyer's escrow account.
If you own an entire apartment building and are considering a phased sale of units, the project passes through three gates (legal, permit, sales) and you only move to the next phase with confirmed figures. You will find an overview in our How it Works section, in our End-to-End Implementation service, or in the FAQ. You can get a non-binding offer or assessment via the form below the article.