Project Financing

Oral reservation (tentative reservation)

Oral reservation are a non-binding preliminary expression of interest in buying a property. It means that an estate agent makes a reservation of the demanded property for you for five days. After this deadline, the reservation must be confirmed either by signing the reservation contract, or terminated, and other candidates may apply for the purchase of the property.

Reservation Contract (binding reservation)

Binding reservation means signing the reservation contract. It obliges the seller not to offer the property to other interested parties. Reservation contract obliges the purchaser to pay the booking fee in an amount 100.000 CZK within 5 (five) calendar days after its signing. Both parties are obliged to sign the Agreement on a future contract on the transfer of ownership of the unit no later than 60 or 30 days (this period is set by the phase of project construction) from the date of its signing. In case of signing the purchase agreement, this reservation deposit is included

Agreement on a future contract of the transfer of ownership of the unit (Future purchase contract)

By signing the reservation contract runs 30-day period during which the Future purchase contract must be signed. This time is granted  to the Buyer, for instance, for a contingent settlement of bank financing.

If the buyer employs the bank financing (mortgage), he is obliged to submit with the Future purchase contract a copy of the credit agreement and to pay 15% of the purchase price minus the reservation fee within 10 (ten) calendar days from the date of signing this agreement. The remaining portion of the purchase price of 85% is paid after Final buildng approval.

Contract of transfer of ownership of the unit (sales contract)

The purchase contract exactly specifies the property being sold, and the total purchase price.

It is signed under the following terms and conditions:

• building was finally approved for use
• owner's declaration has been submitted to the Land Registry
• the buyer paid the entire purchase price on the project's account at a bank financing the project

By submitting the proposal of inscrption of the purchase agreement to the Land Registry the changes of ownership of the property in question are recorded.