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Persons whose purchase intention are expressed verbally, have the right to reserve the property for several days. Once oral terms expire, potential buyers may either commit by signing a reservation or withdraw the initial interest. Buyer who have signed the reservation form as first has the subsequent property purchase priority.
A legally binding reservation is a written contract for deal closure. The seller commits not to offer the property to third parties for the defined booking period expressed in the contract, and buyers confirm their serious interested in property purchase. Reservation contract commits the buyer to pay a 250.000, - CZK, upfront reservation fee (payment) within 5 (five) working days from its signing. Both contracting parties sign an agreement on a future contract on the transfer of ownership of the property (future purchase agreement) or a contract for the transfer of ownership of the property (purchase agreement), no later than the reservation period ends, which is usually 2 (two) to 3 (three) months from the date of signing the reservation contract. In case of signing the purchase agreement, the reservation deposit credited to the final purchasing price. Reservation agreement closure abolishes all previous pre-contract agreement and the purchase contract replacing it. In case buyers do not sing their future purchase contract or purchase contract within his/her reservation contract, reservation deposit is forfeited in favor of the seller.
In some cases, both parties sign future purchase contract before signing a purchase contract itself. This future purchase contract has to be signed by both parties within defined reservation period indicated in the reservation contract. Reservation period is granted to allow the purchaser to define financing through a bank. In the future purchase contract, both parties commit to close a purchase contract within defined contractual time, and by that, they affirm their commitment to a contractual penalty. If this deadline for one of the parties conclude a purchase contract is obligated to the other Party to pay a penalty. If the purchase contract is not closed by one of the parties within defined contractual time, the one will be obligated to pay a penalty.
After the closure of a future purchase contract and before closure the purchase agreement, the buyer is obliged to pay the remainder of the purchase price either on the income account, an escrow account at UniCredit Bank or on a storage account advocacy custody lawyer designated by the seller.
In the vast majority of sales, a purchase contract itself is being signed between two parties directly. In this case, the purchase contract has to be signed by parties within defined reservation period which is indicated in the reservation contract. Reservation deadline is defined and granted in case of the need of funding through banks. At signing the contract the buyer has to submit a document which confirms the way of financing the property. The remaining part of the purchase price is paid by the buyer on the income account or the bound escrow account at UnicereditBank or to attorney's custody lawyer, defined by the seller before concluding/signing a purchase contract.
In case the seller and the bidder agree that after a reservation contract will conclude/sign a future purchase contract, parties must sign a purchase contract within the agreed time limit specified in the future purchase contract. Further details are explained in the "AGREEMENT ON A FUTURE CONTRACT ON TRANSFER OF PRORERTY OWNERSHIP” (future purchase agreement). The contract regarding escrow account or the contract regarding attorney escrow is being closed along with a future purchase contract, or possibly with the purchase contract and serves as a custody of a purchase price.