REALWorld Law

Sale and purchase

Steps in the transaction

What are the normal steps involved in a real estate transaction?

Czech Republic

Czech Republic

Real estate transactions are normally either in the form of direct acquisition of the real estate (asset deal) or an acquisition of the company holding title to the property (share deal). The choice primarily depends on tax and risk considerations, the type of real estate, and the reliability of the other party to the transaction. A share deal provides certain tax benefits but there can be some associated risks for the holding company. The steps involved in the transaction as asset deal are:

  • Letter of intent
  • Exclusivity agreement
  • Agreement for future purchase
  • Due diligence
  • Purchase agreement
  • Registration in the Cadastral Register