How buying off-plan works in Czechia, step by step

Updated 29 September 2026

Many new-build flats in Prague are sold long before anyone can walk into them. You choose a unit from floor plans, pay a reservation fee, sign a contract and pay part of the price while the building goes up. This guide follows the usual sequence, from reservation to registration as the owner, and shows where the risks sit.

Each developer uses its own contracts; this is common practice, not a rule.

What off-plan means and why developers sell early

Buying off-plan (in Czech _koupě bytu ve výstavbě_, sometimes _na papíře_) means buying a flat in a building that is not finished, or not even started. Between the start of sales and handover there are often two years or more.

Developers sell early partly because the banks financing their projects usually want to see a share of the flats pre-sold, and partly because buyers' payments reduce how much they need to borrow. Early buyers get the widest choice of layouts and floors, and often a lower price. The cost is waiting, and the risk that the building is late, changes, or is never finished.

NewBuildTracker keeps a price history for every flat in the Prague search, so you can check whether a project's prices rose from phase to phase, stayed flat or were cut.

Step 1: Reservation agreement and reservation fee

The first document is usually a reservation agreement (_rezervační smlouva_). The developer takes the flat off the market for a set period and holds the quoted price; you pay a reservation fee. The Civil Code does not define this type of contract, so everything depends on its wording.

At the time of writing, reservation fees for new-build flats in Prague typically range from tens of thousands to a few hundred thousand crowns, and some developers set them as a percentage of the price. The reservation usually lasts a few weeks, enough to get a mortgage pre-approval.

Before you pay, check:

What is reserved: unit number, parking, storage, the price including VAT, and the deadline for the next contract.
What happens to the fee: it is usually credited towards the price, refunded if the developer does not sign the next contract, and kept if you walk away without a reason the agreement accepts.
A financing clause: some agreements refund the fee if a bank refuses your mortgage; ask for one if you need a loan.
Where the money goes: escrow is safer than the developer's own account.

Step 2: The future purchase contract

The main contract during construction is usually the future purchase contract (_smlouva o smlouvě budoucí kupní_, often abbreviated SOSBK). Both sides commit to sign the actual purchase contract once the flat exists as a registered unit, on terms agreed now. Under the Civil Code, the other party must be called upon to sign within the period the contract sets, or within one year if it sets none, otherwise the obligation lapses. Good contracts therefore tie the deadline to completion and add a clear end date.

Some developers instead sign a purchase contract straight away, with ownership passing only once the unit is registered in the cadastre. The checks below apply to both.

What the contract should contain

The exact unit: number, floor, floor area and how it is measured, balcony, cellar and parking, with plans and a specification of finishes (see Czech flat layouts and terms).
The price and what it includes. Prices are usually quoted including VAT; flats of up to 120 m² floor area are taxed at the reduced rate, currently 12 %.
The payment schedule and what triggers each instalment.
A completion deadline and a contractual penalty (_smluvní pokuta_) if the developer misses it. Compare it with your own penalty for late payment.
Your right to withdraw with a full refund if the delay exceeds a set limit or the project changes substantially.
Client changes (_klientské změny_): what can be changed, by when, at what price, and whether they can delay handover.
The mortgage: the developer's duty to supply documents to your bank and consent to its lien, and what happens if your loan is refused.

If the developer is late or goes bankrupt

Delays of several months are not unusual, and the penalty is often the only compensation. Insolvency is worse: if you paid advances straight to the developer without security, you would typically be an unsecured creditor and might recover only part of your money, years later.

Step 3: Payment schedule and protecting your money

A common pattern is 10–20 % of the price when the future contract is signed, sometimes further instalments tied to milestones such as completion of the shell, and the rest, often 70–80 %, with the purchase contract at completion. Some developers offer a discount for paying more up front; weigh it against the extra risk.

At the time of writing, Czech law does not require developers to protect buyers' advance payments in one prescribed way, so your protection is whatever the contract provides. The usual options:

Escrow (_advokátní, notářská_ or _bankovní úschova_): a lawyer, notary or bank holds the money and releases it only when agreed conditions are met, typically once your ownership is registered.
A bank guarantee (_bankovní záruka_): a bank promises to repay your advance if the developer does not deliver.
A project account at the developer's financing bank, usable only for the project; it protects less, so ask what it covers.

Step 4: Completion, kolaudace and handover

When construction ends, the building authority must approve the building for use. This is _kolaudace_; under the new Building Act, in force since July 2024, it ends with a _kolaudační rozhodnutí_ allowing the building to be used. The developer then registers a declaration (_prohlášení vlastníka_) in the cadastre that divides the building into units; only then does your flat exist as a separate property you can buy.

The handover protocol

At handover (_předání bytu_) you inspect the flat with the developer and sign a handover protocol (_předávací protokol_). Take your time, consider bringing an independent building inspector, and compare everything with the specification in your contract. Every defect goes into the protocol with a deadline for repair. Contracts usually let you refuse the handover only if defects prevent normal use of the flat.

Defects after moving in

Under the Civil Code, a hidden defect of a building must be reported within five years of acquiring it, and any defect should be reported without undue delay once you notice it. If you buy as a consumer and a defect appears within two years, it is presumed to have existed at handover, so the developer has to prove otherwise. Many developers also give a contractual guarantee (_záruka_) with its own periods for the building and for equipment. Report defects in writing (_reklamace_), with photos, and keep copies.

Step 5: Purchase contract and registration in the cadastre

Once the units exist, you sign the purchase contract (_kupní smlouva_), usually on a template attached to the future contract, and pay the rest, often through escrow. A petition for registration (_návrh na vklad_) then goes to the cadastral office.

You become the owner only when the transfer is registered in the land register (_katastr nemovitostí_); the registration takes legal effect from the day the petition reached the office. By law, the office cannot register the transfer earlier than 20 days after notifying the parties, and in practice it usually takes several weeks. The administrative fee for the petition is 2,000 CZK at the time of writing, and the contract says who pays it, often the buyer.

Mortgage timing for an off-plan flat

If you need a mortgage, talk to a bank or adviser before paying the reservation fee. The bank's valuer assesses the future flat from the project documentation, and the bank lends from the lower of the price and the valuation. The Czech National Bank's limits generally allow loans up to 80 % of the property's value, or 90 % for applicants under 36 buying their own home, and since April 2026 stricter limits apply to investment purchases. Foreign buyers often face extra conditions; see buying a flat in Prague as a foreigner.

Off-plan mortgages are usually drawn in stages: the bank pays each instalment as it falls due, and until the final drawdown you typically pay only interest on the amount drawn. Before the flat exists as a registered unit, banks secure the loan in other ways, for example with a future lien (_budoucí zástavní právo_), and each bank handles this differently. Banks also set a deadline for drawing the full loan, so ask what happens if construction runs late. Also ask when the rate fixation starts; on a long build, part of it may pass before you move in.

Risks and how to reduce them

Check the seller. Projects are often sold by a company set up for that one project; find out who signs the contract and whether a parent company stands behind it. Check how their earlier projects went.
Check the building permit. Ask whether the project has a final building permit (_stavební povolení_, or _povolení záměru_ under the new Building Act). Without one, the risk of delay is higher.
Check the land. Anyone can look up a plot for free in the official cadastre viewer. A lien for the developer's bank is normal, but the contract should oblige the developer to release it for your unit before the transfer.
Get an independent lawyer, not the developer's or the agent's. If the contract is bilingual, check which language version prevails.
Never pay large sums without security such as escrow or a guarantee.
Look at the price history. Prices rising from phase to phase suggest demand. Compare prices per m² on the market overview and see which flats are no longer listed, which usually means sold.

Before you sign: a checklist

This guide is general information, not legal or financial advice. Go through this list with your lawyer and mortgage adviser:

You know when the reservation fee is refunded, including if your mortgage is refused.
The unit, floor area, finishes, parking and storage are specified, with plans attached.
The price includes VAT, and you know what client changes will cost.
Every instalment has a clear trigger and is protected by escrow or a guarantee.
There is a completion deadline, a penalty for delay and a right to withdraw with a full refund.
The project has a final building permit, and you have checked the land and liens in the cadastre.
Your bank has confirmed it will finance this flat and explained drawdown and its deadline.
A lawyer independent of the developer has reviewed every contract.