Selling a property
Selling property is a demanding business transaction, which consists of several processing steps and requires rather complicated legal operations.
Cooperating with a professional real estate agent can significantly speed up the entire process, help attain the highest possible sales price and save a considerable amount of stress.
1. Choosing a real estate agent
Independent surveys show that those who use the services of experienced real estate agents sell their property for a higher price and in a shorter period of time, than those who sell it themselves.
2. Inspection of your property by a real estate agent
Inspection of your property is a prerequisite for professional service. When estimating the sales price, not only does the property play a role as such (age, condition and amenities), but also the surroundings (civil amenities, transport services) and the current offer of properties on sale in the given location.
3. Preparing your property for sale
Even before you begin to offer your property for sale, it is important to thoroughly prepare its attractiveness as much as possible. Your real estate agent will give you important tips and recommend, or provide a specialist if necessary, who can take care of this for you.
The property should make a clean impersonal impression, in order to enable the interested party to create their own idea of possible future use and amenities. The gardens of family houses should be maintained. When taking photographs of the property for marketing purposes, we recommend removing personal items or family photographs.
4. Concluding an Agency Agreement
Your agent will diligently familiarise you with the conditions of cooperation. If you come to an agreement, you will conclude an Agency Agreement together with the real estate office represented by your real estate agent. This ensures a smooth course of business transactions, it contains the conditions that have been agreed to and establishes the right for the agent to offer the property and deal with interested parties.
5. Creating a sales presentation of your property
Your agent will create a professional presentation of your property for marketing it and for dealing with interested parties. The sales presentation includes all general and technical information on your property, photographs, layout and other relevant documents and information.
6. Listing your property in the system
Within 24 hours of signing the Agency Agreement, your property will be entered into the internal RE/MAX system and subsequently exported to all important real estate servers. At the moment your property is entered into the system, pairing with corresponding enquiries will begin from the entire RE/MAX network and its offer is sent to all potential interested parties by email.
7. Marketing your property
An important part of the sales plan is a made-to-measure advertisement of your property. The less standard the property, the more diverse the marketing activities can be.
8. Tour of your property
You agent will only select suitable parties interested in a tour of your property in advance, based on their criteria and financial competence. This saves your time and privacy.
9. Reservation Agreement (Priority Reservation Deposit Agreement)
If an interested party decides to buy your property under the agreed to conditions, your real estate office concludes a Reservation Agreement (Priority Reservation Deposit Agreement) with the interested party, based on which the client deposits a reservation fee (reservation deposit). Thereby, the property is reserved for the interested party and the contracting parties have time to prepare the Purchase Agreement and arrange financing if required. RE/MAX offers buyers the RE/MAX Mortgage service free of charge, which can also have an impact on how fast the property is sold in your favour.
10. Purchase Agreement / Agreement on the Transfer of the Residential Unit / Agreement on the Transfer of Membership Rights and Obligations in a Housing Cooperative
An agreement based on which ownership is transferred from the seller (you) to the buyer. Ownership rights are transferred by entry into the Land Registry. Cooperative share is transferred upon the instance the Agreement on the Transfer of Housing Cooperative Authority is delivered.
The contracting parties sign all required agreements, your real estate office ensures they are submitted to the Land Registry, or to the Cooperative. The office submits the necessary documents to the escrow account (original Title Deed), based on which the purchase price is paid out to you.
12. Handing over property
When handing over property, the seller must pay the Real Estate Transfer Tax, which totals 3% of the purchase price or of the expert appraisal, depending on which is higher. Considering that the buyer is the warrantor by law, this means the Tax Revenue Office could exact the amount from the buyer if the seller does not pay out the tax. Therefore, the corresponding part of the purchase price is left in the escrow account, from which it is directly sent to the Tax Revenue Office’s account. If the seller owns the property for a period shorter than 5 years, the buyer is also obligated to pay value added tax. An experienced agent should warn you of this fact and recommend or arrange consultation with a tax advisor if necessary.
13. Tax returns
Tax returns on Real Estate Transfer Tax must be submitted to the Tax Revenue Office by the end of the 3rd month following the month in which the rights deposited were entered into the Land Registry. Mandatory annexes are as follows:
- Expert appraisal on the price established according to special regulations (price valid to the date of property acquisition), or an expert appraisal, with which the value of the subject of deposit is determined according to the Commercial Code.
- A certified copy of the Purchase Agreement with the stamp of the Land Registry
The price of the property established in accordance with special regulations is deemed the price valid to the day of property acquisition, i.e. to the day
- legal effect of registering rights in the Land Registry, in the case of transferring a property registered in the Land Registry against payment, pursuant to an agreement,
- the effectiveness of the Agreement on Property Transfer Against Payment, which is not registered in the Land Registry,
- legal powers of deeds, which confirm or verify ownership rights to property.
In the case of a deposit into a joint stock company or limited liability company, tax returns also include the expert appraisal, whereby the value of the subject of deposit is established pursuant to the Commercial Code.
An expert appraisal is not required, if it concerns an ownership transfer or changeover
- for a property, which is entirely exempted from taxes,
- for a property without any building structures and permanent vegetation – in these cases, the tax entity may determine the price of the land himself according to the valuation code,
- when establishing rights corresponding to an easement for donating a property – in these cases the tax entity may determine the price of the easement himself according to the valuation code,
- for a property from the ownership of a local government unit – the tax base is the price agreed,
- when auctioning a property – the tax base is the price attained in the auction,
- when cancelling or settling divided co-ownership – the tax base is the price stipulated by the court,
- in the case of a property transfer against payment or changeover from ownership in the Czech Republic, if the transfer or changeover of property ownership is exempted from tax.
Blank forms are available in electronic format for print and to be subsequently filled out by hand, or for download on the website of the Czech Tax Administration (http://cds.mfcr.cz) in the Tax Form menu and on the website of the Ministry of Finance (www.mfcr.cz) in the Tax and Customs section (Tax menu).