Risks and legal situations

Property auction (dražba)

In Czech: Dražba nemovitosti

A property auction (dražba) is a legally regulated public sale in which the highest bid wins the property. It can be held, for example, as a public auction under the Public Auctions Act or as an auction within enforcement proceedings.

Also called: dražba, public auction, enforcement auction, exekuční dražba

What it means

A property auction (dražba nemovitosti) is a legally regulated way of selling in which bidders compete openly by raising their offers and the highest bid wins. The buyer does not negotiate the price or the terms with the seller; they are fixed in advance in the auction notice (dražební vyhláška).

The word dražba covers several different procedures. A public auction (veřejná dražba) run by an auctioneer (dražebník) works differently from an auction of a property within enforcement proceedings (exekuce), which is run by a court bailiff (soudní exekutor).

How it works in the Czech Republic

Since 1 January 2025, public auctions have been governed by Act No. 250/2023 Coll. on Public Auctions (zákon o veřejných dražbách), which replaced the earlier Act No. 26/2000 Coll. Older articles may therefore describe rules that no longer apply. The previous rules distinguished a voluntary auction (dobrovolná), held at the request of the person entitled to dispose of the property, and an involuntary one (nedobrovolná), held at the request of a creditor with an enforceable claim, for example when enforcing a lien. Check the current text of the new act to see how it treats this distinction.

An auction within enforcement is a separate procedure, because selling real estate is one of the methods of enforcement. The date, the minimum bid (nejnižší podání), the auction deposit (dražební jistota) and viewing dates are usually set out in the notice for each auction.

The winning bidder usually pays the rest of the price within the deadline in the auction terms. Some rights may survive the auction, so read what the notice says about leases, easements and other restrictions.

Practical example

For example, a flat is auctioned with a minimum bid of CZK 2 million and a deposit of CZK 200,000 (illustrative figures only). A bidder arranges financing in advance, attends the viewing listed in the notice, pays the deposit and wins at CZK 2.6 million. She must pay the balance by the deadline in the auction terms, which also describe what would happen if she missed it.

What to watch out for

  • Read the whole auction notice: minimum bid, deposit, payment deadline and what happens to leases and easements.
  • Check the title deed (list vlastnictví) for rights and restrictions on the property.
  • Attend the viewing; otherwise you know the condition only from the description.
  • Ask your bank in advance whether and how it finances auction purchases, as deadlines tend to be short.
  • Find out whether anyone lives in the property and allow for the handover taking time.

Frequently asked questions

What is the difference between dražba and aukce?

A dražba is a legally regulated public sale, for example under Act No. 250/2023 Coll. or within enforcement. An aukce is a commercial sales method, often online, which need not be a public auction in the legal sense.

Is Act No. 26/2000 Coll. still in force?

No. Since 1 January 2025 it has been replaced by Act No. 250/2023 Coll. on Public Auctions (as of October 2026).

Can I use a mortgage to buy at an auction?

It depends on the bank and the payment deadline. Arrange the financing before you pay the deposit.

  • Online property auction (aukce)An online property auction (aukce) is a commercial way of selling, usually online, in which bidders raise their offers and the highest one gets the chance to buy. It need not be a public auction under the law; the organiser sets the rules.
  • 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.
  • 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.
  • 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.
  • 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.

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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