Buying property

Legal defects of a property (právní vady)

In Czech: Právní vady nemovitosti

Legal defects of a property (právní vady nemovitosti) are third-party rights or other legal restrictions that stop the buyer from freely using or disposing of it, such as a lien, easement, lease, enforcement or ownership dispute.

Also called: encumbrances, title defects, právní vady

What it means

While a physical defect concerns the building itself (damp, cracks), legal defects of a property (právní vady nemovitosti) mean that someone else has a right to it or that the owner cannot freely deal with it. The buyer then cannot freely use, let or later sell the property.

Typical legal defects are a lien (zástavní právo, for example the seller's mortgage), a servitude (služebnost) or a real burden, a right of pre-emption (předkupní právo), a lease, enforcement (exekuce) or the seller's insolvency, an ongoing ownership dispute, and unclear plot boundaries or access.

How it works in the Czech Republic

Most legal defects can be found in the land register (katastr nemovitostí). The title deed (list vlastnictví) shows restrictions on ownership and notes, for example about enforcement or insolvency. A lien and a servitude over registered real estate arise on entry in that register (Civil Code § 1316 and § 1262).

Some defects are not visible there: an unregistered lease, debts of the seller that have not yet led to enforcement, or insolvency proceedings not yet reflected in the register. The insolvency register is public and anyone can search it at isir.justice.cz. Once insolvency proceedings take effect, the debtor must refrain from dealing with the estate where this would substantially change it or reduce it more than negligibly; acts in breach are ineffective against creditors (Insolvency Act § 111).

An estate agent must give their client an extract from the public register by the day the contract is signed at the latest, and inform them of defects and restrictions in public registers and of those the agent knew or should have known about. The purchase agreement should include the seller's statement on legal defects and how they will be removed, for example by repaying the mortgage from escrow and deleting the lien.

Practical example

For example, the title deed of a family house shows a lien in favour of the seller's bank and an easement for a gas pipe across the plot (an illustrative situation). The contract says part of the price goes from escrow to the bank to repay the loan, the bank consents to deleting the lien, and the buyer accepts the easement because it does not restrict use of the house. The seller is paid only after the buyer is registered and the lien deleted.

What to watch out for

  • Check the current title deed on nahlizenidokatastru.cz right before signing and again before money leaves escrow.
  • Search the seller in the insolvency register at isir.justice.cz and ask about any enforcement.
  • Ask whether the property is let and see the lease; check with a lawyer what happens to it after the sale.
  • Have the seller state in the contract that there are no legal defects other than those expressly listed.

Frequently asked questions

Where do I find legal defects of a property?

Mainly on the title deed in the land register, then in the insolvency register and by asking about leases. Check the records as close to signing as possible.

Can I buy a flat with a mortgage on it?

Yes, if the contract says exactly how the debt will be repaid from the price and the lien deleted; escrow is usually used for this.

What is the difference between a legal and a latent defect?

A latent defect (skrytá vada) concerns a physical condition that was not visible at purchase. A legal defect means someone else has rights to the property or dealing with it is restricted.

  • Lien (zástavní právo)A lien (zástavní právo) secures a debt: if the debtor does not pay, the creditor can be satisfied from the pledged property. On a property in the land register it arises by entry and stays with the property when it changes hands.
  • Easement (věcné břemeno)An easement (věcné břemeno) is a right of another person over a property that restricts its owner: they must tolerate something, refrain from something, or give or do something. It stays with the property when sold.
  • Enforcement against a property (exekuce)Enforcement against a property (exekuce) is the forced recovery of a debt in which a court bailiff targets the debtor's house, flat or land. Once it starts, the owner may not freely dispose of the property, and it may be sold.
  • Insolvency (insolvence)Insolvency (insolvence) is a situation in which a debtor cannot meet their obligations. During insolvency proceedings the debtor must refrain from significant dealings with their assets, so selling their property follows special rules.
  • Right of pre-emption (předkupní právo)A right of pre-emption (předkupní právo) gives a particular person priority when a property is sold: an owner who wants to sell must first offer it to them. It can arise by law or be agreed in a contract.
  • Title deed (list vlastnictví)A title deed (list vlastnictví, LV) is the land register sheet that shows, for one cadastral area, who owns which properties and what burdens them, such as mortgages, easements or a pending change of ownership.

Sources

Laws and official pages this text is based on (in Czech).

This text is for information only and has not yet been checked by a legal or financial expert. It is not legal, tax or financial advice. Verify important details in the listed sources or with a professional.

Updated 25 October 2026

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