FAQ

What is the Exclusivity agreement (Agreement of the exclusive representation):

Exclusive mediation agreement gives guarantee of adherence to the settled inquire selling price to the selling person.

The ADOMUS real estate company accepts the exclusivity to the given property as responsibility towards its client ad as a premise for serious and professional solution of given case. Exclusivity is for us the obligation to engage financially and professionally in the maximal degree in the entrusted case and  to proceed to the earliest achievement of by the contract defined goal.

Thanks to higher and higher amount of cooperating tipsters bound in the commercial network, very quick saleability of the by us offered properties is ensured in the Czech Republic.

Overwhelming majority of prospective buyers ask us to place in our offer only properties with the signed exclusivity agreement, because they do not want to risk the loss of time, financial means and are not interested in offers that are offered everywhere and for different prices.

What are the advantages of Exclusivity agreement - from the seller's point of view:

• no real estate agency (below only REA) does fully devote to the order, which is not contractually – exclusively secured, i.e. 100% under control. This fact reveals also in the costs expended on the advertisement. When more REA take possession of one seller, depreciation of credibility of property sale can occur.
• by the non-exclusive agreement, the offered property appears on the same advertisement places frequently with different price and sometimes also with different data about property
• it absolutely is not true that more REAs advertising the property bring the quicker sale and higher price of property. Exclusivity agreement gives the sellers guarantee of price and restrain the buyer's possibility to bargain.

What are the advantages of Exclusivity agreement - from the buyer's point of view:

• in case the buyer realizes the site inspection of property, that is not under the Exclusivity agreement more REAs and prospective buyers can meet on the site inspection.
• in the moment of reservation of the property, the buyer has no guarantee that, for a period of reservation and organisation of financing of given property, cannot come to the sale of this property by another REA. The buyer can herewith loose the chosen property and also money expended for acquisition of credit (estimate for band and fee for processing of credit or mortgage).

What are the advantages of Exclusivity agreement - from the ADOMUS tipster's point of view:

In case of realization of the sale we pay from 7 to 10 % of commission for REA to the tipster. Tipster can watch the realization of the tipped sales on intranet pages.

BUY AND SALE OF PROPERTY

Is there an obligation to have a signature of both spouses on the agreement about sale of property which is a part of joint property of the spouses?
Sale of property which is a part of joint property of the spouses is in fact the transaction that falls outside of usual administration of such property and therefore has to be agreed by both spouses. Nevertheless, the Civil Code does not require the purchase agreement signed by both spouses but both spouses should agree with this conclusion. In case of disagree of one of them, the agreement would be void. To prevent possible future doubts about the existence of agree of both spouses, the signature of both is advisable. The other possibility is the signature of the agreement with the conclusion made by the spouse, who will not sign the agreement.

I am married. Can I buy the property in my absolute possession?
Yes, it is possible. This result is possible by striction of legal extension of joint property of the spouses - the notarial record is need for this. It is possible to execute the striction of extension of joint property of the spouses not only by the in future gained property (i.e. striction is executed before the acquisition of property in joint property of spouses) but also by the property that is already a part of joint property of spouses (i.e. striction is executed after the acquisition of property in joint property of spouses). The other possibility of acquisition of property in the absolute possession of one of the spouses in time of duration of marriage would be e.g. the property gained by inheritence or donation to only one of the spouses.

Is the foreigner allowed to acquire a property in the Czech Republic?
According to the prevailing Exchange Law, the foreigners (i.e. persons who neither are Czech nationals nor have the permanent residence permit in the Czech Republic) are allowed to acquire properties in the Czech Republic very restrictedly, e.g. by inheriting. In connection with the entry of the Czech Republic in the European Union, this limitation will be mitigated in relation to citizens of member states of the European Union. Notwithstanding, the agreement of accession determines transitional periods for acquisition of agricultural land and woods and for acquisition of properties by side living for the 7 year period (or 5 year period). For this period, the citizens of member states are not allowed to acquire the above mentioned properties even after the entry of the Czech Republic in the European Union. It is assumed that the issue of interpretation of the term side living will be solved by the prepared novel of the Exchange Law and by the interpretation practice of European institutions.

I am juvenile. Can I acquire a property (by purchase or donation)?
Capacity of the natural body to have rights and duties, i.e. also the proprietary right, is formed by the birth, or more precisely - also the conceived baby has it in case it is born living. Consequently, the juvenile person can be the owner of property. Another question is the conclusion of agreement, that should be a basis for acquisition of the proprietary right by juvenile. The thing is that the juvenile person is capable only for such legal acts that are adequate to adulthood appropriate to the age of the juvenile person. In most of such cases, the juveniles are not capable for such legal act, as e.g. buy of property is. for conclusion of agreement about acquisition of property, the juvenile will be therefore represented by the legal guardians, above all by parents or other legal guardians, e.g. adopter, guardian or curator.

WHAT TO FOCUS ON

What to focus on when buying property?
Primarily, it is necessary to authenticate the legal relations to the bought plot, i.e. if the selling person really is, according to the land register, the owner of the sold plot and if there are some rights in favour of third persons, above all encumbrance, mortgage or pre-emptive rights. Furthermore, the character and possible ways of utilization of the plot (i.e. whether it is the building plot or whether there is a possibility to build the family house or commercial building on this plot) should be verified in conformity with statement from the land register and respective territorial plan. Last but not least, the heed should be taken of the approach to the bought plot (if there is, according to the geometrical plan, free approach to the plot), of defects of the plot, of the environmental damage and geological subsoil, as well as of territorial plan concerning surroundings of the plot, above all with respect to the possibility of buildin of road or factory.

What are the obligatory constituents of the real estate conveyance agreement?
The real estate conveyance agreement should, besides determination of the contracting party, contain at least the amount of purchase price and regular identification of subject property, that should be in accordance with the land register. With respect to the fact that the land registry within bounds of administration examines, whether the agreement really contains written manifestation of will of the in agreement stated persons, it is desirable to authenticate the signatures of agreement by notary.

What are the ways to authenticate the existence of free approach to the bought property?
In case of buy of house, there are few things to verify and establish. The subject of buy should be also the plot under and around the house. From the geometrical plan (available at the land register) should be established, whether the plot adjoins to public communication, eventually if the approach over the next plot is assured by means of encumbrance of the road.

What are the terms of the cadastral registry for settlement of suggestions?
The administration with the land registry, general terms for decision (that are set by the administrative regulation) are applied. This generally makes 30 days, in extremely complicated cases 60 days. In case of no possibility to decide within this term because of the manner of thing, the organ of appeal can extend it adequately, in reaction on the deciding organ's appeal. Notice: the experiences show that above all in Prague, the above mentioned general terms are exceeded frequently.

LET OF A FLAT

What are the obligations of the tenant, respectively of the flat-letter?
Basic duties of tenant and flat-letter re stated by the Civil Code. The tenant's right are following: above all the right of undisturbed utilization of the flat, communal spaces and flat equipment, the right to ask the flat-letter to carry out the compulsory reparations or the right on adequate discount from rent in the by law stated cases. The tenant's duties are following: duty to pay rent, remove the adaptations made without agreement of the flat-letter, facilitation of approach to technical equipment (that is part of flat) and to pay costs for small repairs in flat and costs connected with usual service (when the agreement does not state anything else).

The flat-letter's rights are following: the right to require payment of rent, to require the removal of adaptations made without his agreement or to require approach in the flat for the purpose of control of utilization of the flat. His duties are following: above all the duty to hand over the flat capable for utilization, to remove defects preventing regular utilization of the flat (except the defects that should be removed by the tenant).

Why do people invest in properties? Money and steadiness are the reasons....
The advantage of steady investment in properties is particular independence on the motion of capital markets with shares and bonds and on the development of interest rate. The investment itself is covered by properties owned by funds that generate long-term profit. Investment horizon is more likely long-term with regular profit. Compared to share-investments, it is more conservative investment with more than 5% p.a. of expected profit.

INCOMES FROM THE SALE OF PROPERTY - TAXATION

Natural body (citizen) sells the property that is not included in his business property

• incomes from the sale of property are absolved from the income tax in case the selling person had his place of residence in this property at least for 2 years immediately before the sale. In other cases, the natural body taxes the income from this sale in his tax return in the § 10 – other incomes. In this case, the income is reduced by the price, for which the property was provably acquired.

Legal entity (entrepreneur, self-employed person) sells the property that is included in his business property

• selling price is a part of taxable profit and tax-residual price of given property is fiscally acceptable cost of company. The only exception is the sale of property in case when tax-residual price is acceptable only up to the amount of profit from sale (i.e. loss from the sale of property is not fiscally acceptable)
• natural body taxes income from this sale in his tax return in § 7 - business activity incomes. Incomes from sale of property are absolved from the income tax in case that the natural body discarded the property from the business property at leas 2 years ago (eventually 5 years ago concerning properties according to § 4 (1) (b) of the Income Tax Act.

Legal entity (company) sells the property

• selling price is a part of taxable profits and tax-residual price is a fiscally acceptable cost of property. The only exception is the sale of property, when the tax-residual price is acceptable only up to the amount of sale profit (i.e. the loss from sale of property is not fiscally acceptable).

Real estate conveyance tax - sale
The real estate conveyance tax is paid by the selling person. In this case, the buying person (acquirer) is the guarantor. The tax rate is 3% from the tax base. The tax base is:

• the price established according to special regulation
• or the negotiated price - the tax base is formed from the higher price

The selling person is obliged to hand in an income tax return at the latest until the end of third month following the month of record of the right deposit in the land register.