Contract to conclude a future purchase contract
1.Parties
- 1.1
Future seller: Seller (hereinafter "the seller")
For each seller and buyer: full name, date of birth (or birth number) and address. For a company: name, registered office, ID number (IČO) and who signs.
- 1.2
Future buyer: Buyer (hereinafter "the buyer"). Under § 1785 et seq. of Act No. 89/2012 Coll., the Civil Code, the parties make this contract to conclude a future purchase contract.
A buyer who does not speak Czech should get a translation, or a bilingual contract that says which version prevails.
- 1.1
2.Property to be sold
- 2.1
The seller owns Property as described in the cadastre, registered in the cadastre of real estate kept by the Cadastral Office for Cadastral office on title sheet no. Title sheet number (list vlastnictví) for the cadastral area of Cadastral area (katastrální území) (hereinafter "the property").
Attach a cadastre extract a few days old at most. For a flat, include the share in common parts and the land. For a house, the building and each parcel.
- 2.2
The following accessories and fittings will be transferred with the property: Accessories and fittings included.
- 2.1
3.Obligation to sign the purchase contract
- 3.1
The parties undertake to sign a purchase contract transferring ownership of the property from the seller to the buyer (hereinafter "the purchase contract"), at the written call of either of them delivered to the other party no later than Last day to call for the contract.
Without an agreed date the period is 1 year. Choose a date that leaves time for the bank and for clearing the seller's mortgage.
- 3.2
The call will include a draft purchase contract that matches this contract. The party called will sign the purchase contract without undue delay, and no later than 15 days after the call is delivered.
The 15 days is a contractual choice. The law says only 'without undue delay'.
- 3.3
If no call is delivered within that period, the obligation to sign the purchase contract ends and the escrow holder returns to the buyer the advance paid under this contract, unless the buyer has breached a duty under this contract.
- 3.1
4.Content of the purchase contract
- 4.1
The purchase price is CZK Purchase price in CZK (in words: Purchase price in Czech words Czech crowns).
- 4.2
The purchase price, less the deposit, will be paid into escrow with Escrow holder before the application for entry is filed. From the escrow, the debt secured by the mortgage listed in the seller's declarations will be paid first, and the rest released to the seller within 5 working days after the escrow holder receives a cadastre extract showing the buyer as owner of the property and no encumbrances other than those the buyer accepted.
Give the holder's name and address. The escrow agreement states the same release conditions. A lending bank usually pays its part into the same escrow.
- 4.3
The buyer will file the application for entry of ownership in the cadastre within 5 working days after the purchase contract is signed. The buyer pays the filing fee. Ownership passes to the buyer on registration in the cadastre, with effect from the day the application was filed.
- 4.4
The seller will hand over the property by Handover date or deadline, but not before the buyer's ownership is registered. The parties will sign a handover report with meter readings. The risk of damage to the property passes to the buyer on handover.
- 4.1
5.Deposit and escrow
- 5.1
No later than Deadline to pay the deposit into escrow, the buyer will pay an advance on the purchase price of CZK Deposit in CZK into the escrow account held by Escrow holder. A separate written escrow agreement between the parties and the escrow holder will set the escrow terms.
This is an advance (záloha), often 10% of the price, not earnest money (závdavek). It counts toward the price and is returned if the deal fails without fault.
- 5.2
On signature of the purchase contract the advance is credited to the purchase price. If the obligation to sign the purchase contract ends for a reason the buyer is not responsible for, the escrow holder returns the advance to the buyer within 5 working days.
- 5.1
6.Mortgage financing
- 6.1
Optional
The buyer will pay part of the purchase price from a mortgage loan of CZK Mortgage loan in CZK. The seller will give the bank the cooperation it needs to take a mortgage over the property, in particular by signing a mortgage agreement or a consent to the mortgage before ownership passes.
Delete this section if the buyer pays entirely from own funds.
- 6.2
Optional
If by Deadline for the bank's decision the buyer does not produce the bank's approval of the loan, although the buyer applied properly and in time, the buyer may withdraw from this contract. In that case the escrow holder returns the full advance to the buyer.
Ask the buyer to show the date of the loan application. Without this clause, a refusal by the bank does not free the buyer.
- 6.1
7.Seller's declarations
- 7.1
The seller declares that the property is not encumbered by mortgages, easements, pre-emption rights, leases or other rights of third parties, except: Existing mortgage to be cleared. The debt secured by this mortgage will be paid from the purchase price out of escrow and the mortgage will be deleted.
Name the creditor bank and the part C entry. The seller's bank gives a debt statement (vyčíslení) and consents to deletion once paid.
- 7.2
The seller further declares that no insolvency or enforcement proceedings are pending against the seller, that the seller has no debts to the person responsible for managing the building, and that the seller has given the buyer the energy performance certificate.
Check them yourself in the insolvency register (ISIR) and the central register of enforcement. For a flat, ask the manager for the § 1186 confirmation.
- 7.3
Until the purchase contract is signed, the seller undertakes not to transfer, encumber or let the property, and not to do anything that would change its condition or legal position.
This binds only the seller. It is not entered in the cadastre and does not stop a sale to a third party, but it supports a claim for penalty and damages.
- 7.1
8.Penalty and withdrawal
- 8.1
If either party breaches the obligation to sign the purchase contract, or a declaration of the seller proves untrue, that party will pay the other a contractual penalty of CZK Contractual penalty in CZK. Payment of the penalty does not affect the right to damages.
Without the last sentence the penalty replaces damages (OZ § 2050). Keep the penalty proportionate. A court can reduce an excessive one.
- 8.2
The buyer may withdraw from this contract if a declaration of the seller proves untrue. The seller may withdraw from this contract if the buyer does not pay the advance in time or within an extra period of 10 days. Withdrawal must be in writing and takes effect on delivery to the other party.
- 8.1
9.Final provisions
- 9.1
This contract may be changed only by written amendments signed by both parties on the same document. Notices under this contract are delivered to the addresses of the parties given above, unless a party gives another address in writing.
- 9.2
The contract is governed by Czech law. It is made in three counterparts: one for each party and one for the escrow holder. A cadastre extract and the energy performance certificate are attached.
- 9.1
10.Signatures
- 10.1
At Place of signature on Date of signature. Seller: .................... Buyer: ....................
All parties sign the same document. Officially verified signatures are optional here but give good proof of who signed.
- 10.1