Ownership and property rights

Lien (zástavní právo)

In Czech: 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.

Also called: zástavní právo, pledge, mortgage lien, zástava

What it means

A lien (zástavní právo) secures a debt. The owner of a property (the pledgor) stands behind a debt with it, their own or someone else's, and if the debt is not repaid, the secured creditor can be satisfied from the proceeds of selling it. Typically you will see a lien in the land register in favour of the bank that granted a mortgage.

A lien over a thing recorded in a public register arises on entry in that register unless another law provides otherwise (Section 1316 of the Civil Code). A pledge of real estate is therefore entered in the land register (katastr nemovitostí) and shown in part C of the title deed.

How it works in the Czech Republic

Besides contractual bank liens, the land register also shows liens created by a decision of an authority, a court or a bailiff, for example to secure a tax debt or in enforcement proceedings (exekuce). A lien is often accompanied by a ban on transfer and encumbrance (zákaz zcizení a zatížení), which prevents the owner from selling or further burdening the property without the creditor's consent.

A property with a lien can be sold. Usually the purchase price is placed in escrow (úschova), the seller's debt to the bank is repaid from it first, and the bank issues a confirmation on the basis of which the cadastral office deletes the lien. The seller receives the rest.

If the buyer uses a mortgage, the buyer's bank in turn registers its own lien on the newly bought property.

Practical example

For example, a seller still owes CZK 1,200,000 on the mortgage of a flat being sold for CZK 4,500,000 (illustrative amounts). The price goes into a lawyer's escrow, the loan is paid off from it first and the seller's bank issues the documents for deleting the lien. The seller receives the remaining CZK 3,300,000 and the buyer gets the flat free of the seller's bank lien.

What to watch out for

  • Check in part C of the title deed (list vlastnictví) in whose favour the lien is registered and what it secures.
  • Have the seller's bank state the outstanding balance and make sure the purchase price covers it.
  • In the escrow agreement, set out that the debt is paid first and only then is money released to the seller.
  • A lien in favour of a bailiff or tax office calls for great caution; also check the seller in the insolvency register on isir.justice.cz.

Frequently asked questions

Can I buy a flat with a bank lien on it?

Yes, this is common. The debt is usually paid from the purchase price via escrow and the lien is then deleted from the land register.

When does a lien end?

Typically when the secured debt is repaid. The entry must then be deleted from the land register on the basis of a document from the creditor.

What is a ban on transfer and encumbrance?

A restriction often registered together with a lien. Without the creditor's consent, the owner cannot transfer or further burden the property.

  • Mortgage (hypotéka)A mortgage (hypotéka) is a long-term housing loan secured by a lien on a property. The borrower repays it in regular monthly instalments, usually over many years.
  • 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.
  • Purchase price escrow (úschova kupní ceny)Purchase price escrow (úschova kupní ceny) means the buyer deposits the money for a property with a lawyer, notary or bank, who pays it to the seller only when agreed conditions are met, usually once the buyer is in the land register.
  • 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.
  • Plomba in the land register (plomba v katastru)A plomba in the land register is the informal name for a note that proceedings affecting the registered rights are under way, typically an entry after a sale. The law calls it marking that the rights are affected by a change.
  • Legal defects of a property (právní vady)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.

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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