Here we have compiled a dictionary of words used by Czech real estate agents. It is designed for those non-Czechs who speak some Czech to better understand what is happening with the purchase or sale of property in Czechia. Be careful, there are many ‘false friends’ – words which look the same as English words but mean something very different.
A mortgage or other loan payment, consisting of both the installment itself and interest. Typically this has a set amount throughout the repayment period. The first repayments are used to pay off the interest. Later payments pay off the debt meaning that the ratio of interest to debt gradually decreases.
With this form of repayment, the debt is amortized throughout the repayment period with fixed repayment amounts. The annuity payment includes the debt and interest payment. The ratio of debt and interest changes during the repayment period.
A real estate auction is a way of selling a property by selling it to the buyer who offers the best conditions to the seller. The best condition may be the price, but will also payment conditions and other factors.
Literally a bank guarantee. It is a written statement from the bank confirming the amount of credit it will issue to an individual, business, or couple. It is used when someone who wants to borrow money has the bank as a guaranter (the bank will vouch for the debtor) that they will pay the loan back in the event of a breach of the conditions of the loan.
Bonitovaná půdně ekologická jednotka (BPEJ)
A Rated Soil Ecological Unit (BPEJ) is a five-digit numerical code, expressing the main soil and climatic conditions. It is used to evaluate agricultural land. Soil and climatic conditions have an important influence on the economic evaluation of agricultural land.
A building, defined as an above-ground structure which is spatially concentrated and externally enclosed by perimeter walls and a roof structure and which has been assigned a descriptive or registration number under (Act 344/1992 Coll.).
A building under construction, defined as an object which is so far under construction that the functional arrangement of the first floor is already visible. It is a term sometimes used for a building to which a descriptive or registration number has not yet been assigned, under (Act 344/1992 Coll.).
An apartment or flat, defined as a room or a set of rooms that are functionally arranged to be fully suitable for permanent living. Only the building authority can decide if an apartment is intended for living.
An apartment or flat under construction. It consists of a room or a set of rooms, which is, in accordance with a building permit, is intended for living. The property must be so far under construction that it is already bounded by a perimeter walls and a roof structure.
Byt v osobním vlastnictví
Literally an apartment in personal ownership. Defined as a privately owned apartment in accordance with Act No. 72/1994 Coll., The Act on the Ownership of Apartments. It must be registered in the state land registry (katastra) as a housing unit.
Bytové družstvo (BD)
A Housing Cooperative – A community of people who have formed an entity that works like a separate company. Members own a ‘share of this company’ which allows them to live in an apartment in the CoOp-owned building.
A residential property (an apartment, a house, or apartment building).
A residential apartment building intended for living, which consists of several apartments which are accessible from communal spaces. The apartment building has a shared main entrance, which is accessible from the road.
Housing stock (apartments only). The amount of apartments of a certain locality.
The drawing of funds from one account into another, either in a one-off withdrawal or gradually.
A one-time transfer of funds to an account selected by the client.
A gradual drawdown of funds into a client’s designated account. Withdrawals occur in multiple amounts to the account specified by the client. For each subsequent drawdown, the client is obliged to meet agreed contractual conditions as specified in the loan agreement.
Čerpání úvěru ze stavebního spoření
Drawing a building savings loan. With a building savings contract, a person agrees to save a set amount of money. They cannot draw upon this money (their savings) until they have saved for at least 24 months and / or after you have saved at least 30 – 50% of the target amount as agreed in the contract.
A building’s registration number. It is used when a descriptive number has not been assigned to a building. It is mainly given to buildings and structures that are intended only for occasional living, such as recreational buildings / holiday cottages.
The orientation number (which is blue) is used mainly for navigation. In the address it is separated from the descriptive number by a slash (i.e. 150/26).
The number given to a plot (or parcel) of land. As well as in contracts, it is used in the state land registry (katastra) for identifying specific pieces of land.
The descriptive number (which is red) is given to each individual building (for permanent living).
Literally ‘definition of an area’ as used with ČSN (Czech building code) standards for contracts, decrees, and in building permits. A precise definition is not possible, as the term varies based on specific conditions and contexts. Individual areas should accept the approved condition of the building (as established by the state’s building control authorities) and not the actual intended use.
1. POZEMKY – PLOTS OF LAND
1.1. Celková plocha pozemku – The total area of the land
This is the total area of the land, which should be identical to the area of land registered in the state land registry (katastra) according to the parcel number (číslo parcelní). Buildings are usually built on the footprint (stavební parcel).
1.2. Zastavěná plocha – A building’s footprint / the area of ground covered by a building
There is no uniform definition of zastavěná plocha in relation to the Building Act. Instead it can be defined only according to the ČSN (Czech building standard) as ‘the area of the floor plan defined by the outer perimeter of the vertical structures of the considered unit’. In the case of uncovered or semi-covered buildings, the zastavěná plocha is defined by ‘envelope lines drawn by the outer faces of vertical structures in the plane of the prepared terrain’.
1.3. Plocha zahrady – garden areas
Simply put, this is the area of a plot of land where there are no buildings or paved roads.
1.4. Zpevněné plochy – paved areas
Paved areas either used by vehicles or pedistrians, such as parking spaces, paths, outdoor terraces, patios etc.
2. OBYTNÉ BUDOVY – RESIDENTIAL BUILDINGS
Residential buildings include apartment buildings, houses, residential parts in buildings of other purposes, building extensions which create new living spaces.
2.1. Užitná plocha – Livable area
The sum of all living areas in a building.
2.2. Celková plocha bytu (podlahová plocha) – an apartment’s floor area (its square footage)
The size of an apartment (including balconies and (for ground floor apartments) terraces. It is usually given in square meters (m2).
2.3. Plocha obytných místností (obytná místnost) – Liveable area
The floor area of all rooms that meet standards required to be classed as ‘liveable’. As well as standard rooms such as living rooms, bedrooms, dining rooms. Because the property market in Czechia advertises on the basis of how many rooms a property has (3 + 1 etc. where the +1 is the kitchen), the law is strict in defining how big a space must be before it is classed as a room (and not just a cupboard). The basic rule is that a ‘room’ is a space intended for permanent living with a minimum floor area of 8 m2. That said, a single living space/apartment must have a floor area of at least 16 m2 (18 m2 in Prague). However, in Prague, a kitchen room (the +1) is defined as having at least 12 m2. In rooms with slanted ceilings the floor area is calculated only on spaces with a clear height of more than 1.3 m (1.2 m in Prague).
Furthermore, the living room must meet a significant number of parameters, such as sufficient celing height, access, parameters of the indoor environment etc. The exact determination of these conditions is contained in several ČSN (Czech building code) standards and decrees and it is not possible to simply summarize it in a few paragraphs.
3. REKREAČNÍ CHATY – HOLIDAY COTTAGES
Each has zastavěná plocha, užitná plocha, plocha pozemku (as explained above).
4. KOMERČNÍ PROSTORY – COMMERCIAL PREMISES
Here I would also introduce the term “kancelářská plocha” or “office space”. This is area does not include warehouses, social facilities, creches etc.
5. ZEMĚDĚLSKÉ OBJEKTY – AGRICULTURAL BUILDINGS
These use similar terms as above.
6. HOTELY, PENSIONY, RESTAURACE – HOTELS, GUEST HOUSES, RESTAURANTS
These use similar terms as above. For hotels versus boarding / guest houses / Bed & Breakfast, the classification should be made according to the categorization (number of stars) the establishment is awarded.
Delinquency occurs on a debt when repayments are not made on time, it refers to any amount owed in arrears.
Deposit. The amount deposited in a financial institution.
Debt. The debtor’s obligation to a creditor that occurs within the legal relationship.
Bond. This is a debt security which the borrower undertakes to fulfill by a certain date. At the same time, the bondholder acquires the right to demand full performance from the debtor within the set deadline.
Debtor. Any person who undertakes to repay a creditor becomes a debtor.
Maturity period. The date by which a debtor is obliged to repay a loan, including fees etc., a agreed in a contract.
This occurs when someone has withdrawn the total amount of money they are allowed to borrow. While it may translate as hitting an overdraft limit, in Czechia it is usually used in relation to taking out a mortgage to the maximum amount allowed. No more withdrawals (čerpání) are permissible.
A documented letter of credit. This is an irrevocable written commitment, which ensures that the seller will receive payment for the goods after meeting the credit conditions laid out in the letter. At the same time, it provides certainty to the buyer that the payment of a certain amount will not be made if the seller does not meet the conditions set by him.
Auction. A sale that is public and accessible to a large number of people. The subject of the sale belongs to the buyer who offers the highest bid. At the same time, the buyer must undertake to meet all the conditions set for this type of sale.
Voluntary auction. This takes place at the discretion of the auction subject’s owner. The owner may also be someone authorized to conduct the auction based on a legal situation, for example a liquidator or administrator in the bankruptcy of an estate.
Involuntary auction. This takes place without the consent of the auction subject’s owner, but instead is instigated by an auction creditor. Auction creditors include mortgage creditors, creditors with debt owed to them that is secured against real estate, and creditors whose debt owed to them are legally secured in some way.
Auction security. This is a cash or bank guarantee that an auction participant is obliged to deposit. The amount and date by which the auction security must be lodged is determined by the auction decree (see ‘dražební vyhláška’ below). If the auction participant does not buy the subject of the auction, the auction security is immediately returned to him.
Auction decree. This is a document announcing the auction and includes all necessary information and details about the auction. This includes: the auctioneer, a description of the auction item, the date, time, and place, and the type of auction. Furthermore, it may also include the lowest acceptable bid (a reserve), the deadline for depositing the auction security (dražební jistota, see above) and other information.
Auctioneer. This can be both a natural person, someone who is registered in the trade register (živnostenský rejstřík) as an auctioneer, or a legal person, who is registered in the Commercial Register (obchodný rejstřík). The auctioneer may also be a state administrative body.
Literally ‘small constructions’. These are single-storey buildings with a maximum footprint of 16 m2 and a maximum height of 4.5 m which perform an additional function to the main building. They also include buildings on land intended for forestry work with a maximum height of 5 m and a maximum footprint of 30 m2, such as those used in forest nurseries or for hunting and wildlife observatory purposes. The definition also includes garages, storage spaces for combustible materials and explosives, civil and fire protection buildings, buildings for use in the uranium industry and nuclear facilities, buildings used in water storage or treatment plants, or buildings used for storing or landfilling of hazardous waste as laid out in Act 344/1992 Coll.
Types of land. Land is a limited part of the earth’s surface and its types include agricultural land (arable land, hop fields, vineyards, gardens, permanent grassland, orchard), forests and woodland, waterways, fishponds, and lakes, built-up areas and courtyards as well as other areas.
Cooperative apartment. The owner of a cooperative apartment is a member of a cooperative who has rental rights as laid out in the cooperative contract.
Duální realitní makléř
Dual real estate agent. This is a real estate broker who works for both the seller and the buyer at the same time. As such, they must defend the interests of both sides and are therefore exposed to various conflicts of interest. A dual real estate agent attempts to broker an agreement concerning a property with mutually acceptable terms for both sides, and if successful will collect a commission and / or fee from both sides.
Dům s byty a nebytovými prostory ve vlastnictví
A house or similar building divided into separate residential and non-residential units. These units are listed in the title deed. Communal areas of the property have shared ownership by the unit owners.
State property ownership record. It was introduced before the land estate register (katastra) law in 1964 and included a list of real estate as, well as property rights.
Best defined as an undeveloped part of a municipality or a piece of land inside town limits.
Fixace úrokové odchylky
Fixed interest rate deviation. This provides a fixed interest rate deviation for the entire duration of the loan agreement.
Fixace úrokové sazby
Interest rate fixation. Fixing interest rates guarantees that the interest rate remains unchanged for a set period of time. After that period the interest rate will change according to current market values.
Fixní úroková sazba
A fixed interest rate. An unchangeable value of the interest rate set for an agreed period of time within the credit agreement. One-year, three-year, five-year, and ten-year fixations are common in the Czech Republic.
Repair fund. Apartment owners must contribute every month to a repair fund that covers the building that their apartment is in. The amount of the contribution is determined by the apartment block’s management team (typically made up of apartment owners) and is based on each owner’s share of common areas. This share is stated in the owner’s declaration and the relevant part of of the title deed. The repair fund is used for maintenance and repairs of communal parts of the building, such as front door, roof, exterior facade, hallways etc. It does not cover other costs, such as real estate taxes, building insurance…
Fyzická osoba – podnikatel
An actual person / an entrepreneur. Terms used to describe a person with a trade licence who does business.
An actual person who has legal rights and obligations. They get them at birth and lose them at the moment of death. Upon reaching the age of 18, a person acquires full legal capacity.
Geometrické určení nemovitosti a katastrálního území
Geometric determination of property and land in the katastra (state land registry). A method of determining the shape and size of a property of piece of land in the state land registry, and determining its boundaries as defined by Act 344/1992 Coll.
A geometric plan is an inseparable part of the documents according to which this entry is made. Proposal for a change expressed graphically with the quantification of the area after the change and with the expression of property rights. The geometric plan must be confirmed at the state land registry office after it has been prepared (it is intended for the maintenance of the land registry in its current state).
Mortgage lender. A financial institution or bank that loans money for buying property.
Mortgage. A loan whose repayment is secured against a property. The purpose of the loan can be for purchasing real estate, financing construction, or other reason.
Hypoteční zástavní listy
Mortgage bonds. A bond security through which a mortgage is financed. The value of a mortgage bond is covered by real estate.
A process of identifying plots of land. In case of legal disputes over the dimensions of a plot of land, this is a way to compare the actual measurments of a plot of land, what is listed in the land registry, and what may be written in other documents as per Act 344/1992 Coll.
Direct debit. A type of payment transaction in which the creditor regularly deducts payments from the debtor’s account.
Intravilán – Designation for built-up areas of a municipality or town, or for an area intended for development into a built-up area.
Lump sum repayment. An extraordinary intsallment of a debt where the borrower repays the remaining part of the loan, including any agreed fees and interest.
Other entitled person. This is a person determined by law other than ownership, registered in the state land registry (katastra).
Principal. The basic value of an amount that has been borrowed or served as a deposit. The principal includes interest.
Jistina, úvěrová jistina
Principal, credit principal. A borrowed amount of finance. The borrower is obliged to repay the amount previously provided by the creditor including interest.
Jistota – security deposit. A temporary payment by the lessee to the property owner as a reserve fund against damages or non-payment of rent or other bills or money owed.
At the end of the lease, the lessee is entitled to a refund of the deposit, including interest minus any debts to the landlord.
State land registry. The Real Estate Cadastre is a public summary of all real estate information. This information includes descriptions of the properties, their geometric layout and precise location. Ownership and other material rights related to real estate are also registered here. It is a multi-purpose registry, used for tax, statistical, and technical purposes.
Land registry map. A large-scale topographical map with a description that shows all real estate and pieces of land that are the subject of the registry. Plots are displayed on the map including the legal definition of boundaries. They are marked with plot numbers and land types (agricultural, residential etc); buildings are shown by the projection of their outer perimeter (Act 344/1992 Coll.).
Land registery office. The Cadastral Office is a state administration in which all data on real estate (including all rights to properties) are kept. The relevant office is located in each district town.
State land registry area. A technical unit consisting of a topographically closed and jointly registered set of real estate in the register (Act 344/1992 Coll.).
An official procedure according to which the relevant building authority issues a decision on whether a certain building meets the relevant standards (construction, hygiene and fire protection) and at the same time grants permission to use the building for a given purpose.
Komplexní pozemková úprava
Comprehensive land management. On the basis of this activity, ownership rights to land are organized. It is done to combine, divide, or spatially redistribute plots of land (as defined in the land registry) into a more practical or beneficial way. The process ensures access to land, creates conditions for the protection of the soil, improving the landscape, fertilization, farming. But conditions are also provided to increase ecological stability.
Debt consolidation. Changing the repayment periods and / or merging several debts into one liability. As part of the consolidation, payment terms can be adjusted.
Kopie katastrální mapy
Copy of the land registry map. A manually, reprographically, or computer-generated image of the katastra map. It is also a public document.
Kupní smlouva na nemovitost
Purchase contract. A private legal document by which the seller is obliged to hand over the object of purchase to the buyer and the buyer undertakes to take over the object and pay the agreed price to the buyer. This document must clearly identify the seller, the buyer, the subject of purchase, and the purchase price.
Title deed. This is a publicly issued document from the land registry (katastra) office. The title deed certifies ownership of the property. This document contains all the data that is listed in the land registry.
‘Loan to value’, or the amount to be borrowed. It expresses the ratio between the mortgage and the value of the mortgaged property.
Mezzanine. A term for a floor that is located between the ground floor and the first floor.
Maisonette. An apartment that has two or more floors.
Extraordinary installment. A repayment of a debt outside of the regular installment calendar.
Místní komunikace – Local road. A publicly accessible road for local vehicles. According to the requirement, local roads are classified as I., II., III. and IV. class.
Municipality. A town or self-governing area.
Acquisition title. A document on the basis of which a person acquires ownership of real estate, such as an inheritance contract, a purchase contract, a gift contract, a transfer contract and the like.
Lease agreement. A contract on the basis of which the lessor (the person renting) is allowed to use the property (owned by the lessee) for an agreed amount and for an agreed period.
Proposal for changing the state land registry (katastra). Once the purchase contract has been signed, this proposal document will be sent (usually by a lawyer) to the land registry office. It authorises the officials there to amend the registry to reflect the property’s transfer of ownership.
Non-residential space. A property or part of a property not designated for living in according to the building authority.
Nebytový prostor rozestavěný
Non-residential space under construction. A property or part of a property that is under construction and is not designated for living in according to the building authority. The space may be part of a building with apartments and / or non-residential premises. The building must be in such a construction stage that it is already bounded by perimeter walls and a roof structure.
Not withdrawing or spending the full available amount of a loan.
Real estate / property. A plot of land or building that is firmly connected to the ground (for example, a house, cottage, garage, field, garden, pond, etc.)
Obvyklá cena současná
Literally, ‘usual current price’. The final price that is achieved when selling the same or similar real estate in a standard business relationship.
Property valuation. The estimated price of a piece of real estate, determined by an expert opinion.
Real estate appraisal. An assessment of a property, especially in the case of a contractual transfer or the sale of real estate in private ownership. For example, if the value of the property is higher, then a forensic expert can make an estimate of the property’s value to determine is a deal was fair / legal.
Ochrana osobních údajů
Protection of personal data. The rights afforded individuals and companies based on Act No. 101/2000 Coll., on the protection of personal data. It is a law which hopes to ensure the protection of sensitive data, such as ID numbers, dates of birth etc.
OSVČ (Osoba samostatně výdělečně činná)
Self-employed person (literally, person independently gainfully active). An actual person doing business on the basis of a trade license.
P.A. (způsob úročení)
P.A. Per annum, which means annually. How often something happens, often used to describe an interest rate.
Plot of land. Land that is geometrically and positionally determined, displayed on the land registry map and marked with a parcel number (Act 344/1992 Coll.).
Plot of land that is not permissable for constructing on (Act 344/1992 Coll.).
Building plot. Land that is registered as for constructing on. Containing a building and courtyard as defined by (Act 344/1992 Coll.).
Literally ‘seal’ (as in one made of wax). It is placed on a property’s listing in the land registry. It protects the owner, because the documents are sealed (typically for 20 days) before the change is official / permanent. During this time, the owner (as listed in the land registry) is warned that a change is taking place. If they are unaware of the change (becuase of potential fraud) then they can stop the change taking place. Today, a real wax seal is not used, but documents or listings may be marked with the latter ‘P’.
Joint ownership. This is ownership that is divided amongst multiple owners.
Sublease. The legal relationship between a tenant and a subtenant. The lessee (person renting) further rents out the property being leased (or a part of it) to a sublessee. A rented property or part of it cannot be sublet without the written consent of the landlord.
Outstanding debt. Money still owed.
Mortgage insurance. Within the contract of a mortgage or loan against a property, the building (as a piece of collateral) is insured against loss or damage.
Polohové určení nemovitosti a katastrálního území
Specificic legal location and positioning of real estate in the state land registry (katastra). The location is determined in relation to other properties in the land registry under Act 344/1992 Coll.
Fee. Financial reward for providing, administering, and managing a loan or other service.
Plot of land. Defined as part of the land surface separated from neighboring parts by the border of a territorial administrative unit or the border set in the land registry (katastra), the border of ownership, the border of tenure, the border of types of land, or interface of the method of land use (Act 344/1992 Coll.).
Pozemní komunikace – Roads are routes intended for use by road vehicles, other vehicles and pedestrians. Roads also include fixed equipment necessary to ensure use and safety. They are divided into motorways (dálnice), main roads (silnice), local roads (místní komunikace) and special-purpose roads (účelové komunikace). There are different rules for each type of road that participants must follow. Roads are immovable things that are not registered in the land registry. Local roads are standard land and belong to the municipality or city. Motorways and roads then belong to the individual regions in which they are located. Special-purpose communications are owned by natural or legal persons. Individual owners of all types of roads are obliged to manage them properly, i.e. to ensure the safety of their users for their specified purpose.
Legal subject. An entity (such as a company) or person eligible for rights and obligations.
Právnická osoba (PO)
Legal entity. Legal entities are a) associations with natural or legal persons, b) housing associations, c) municipalities, counties etc, d) other entities as stipulated by law.
Prázdniny na splácení jistiny
Loan repayment holiday. An agreed period of time during which only the interest on a loan is repaid.
PRIBOR – Prague Interbank Offered Rates
The interest rate at which banks lend to each other.
Privatization. The transfer of state property to private ownership. The opposite of privatization is nationalization.
Prohlášení úvěru za splatný
Declaration of a loan due. If the borrower does not meet the agreed conditions even after the creditor’s request, then the benefit of repayments is taken away from him.
Declaration of the owner. Based on the declaration of a property’s owner, a building is divided into units. This amendment is then entered into the land registry.
Lease. Based on a contract, the landlord allows the tenant to use a residential or non-residential unit (for example, an apartment in private ownership), for an agreed amount and for an agreed period. The lease of an apartment is regulated by the Civil Code.
Předhypoteční úvěr, stavební úvěr
Pre-mortgage loan, construction loan. This is a short-term loan that can later be converted into a mortgage.
Loan accessories. These are contractual interest fees and charges.
Non-agricultural land. This is a type of land that is not suitable for use for agricultural purposes (for example, bodies of water, rivers, etc.)
Agricultural land. This is a type of land that is intended for agricultural use.
Realitní makléř kupujícího
Buyer’s real estate agent. A property broker who represents only the interests of the buyer’s party.
Realitní makléř prodávajícího
Seller’s real estate agent. A property broker who represents only the interests of the seller.
Holiday cottage. An older building, which was built for the purpose of living and later separated from the housing stock and re-approved only for recreational (not all-year-round) living.
Holiday chalet. A building (more hut like than a cottage) intended for holiday living with a built-up area up to a maximum of 360 m3 and a footprint up to a maximum of 80 m2, including terraces, entrances, and verandas; it can have no more than one floor, plus a basement and an attic.
Revitalization. The modernization or insulation of buildings.
Building under construction. A building with a minimum amount of construction that the constructional and functional arrangement of the first floor is already visible, if it has not yet been assigned a descriptive or registration number (popisné číslo or evidenční číslo) as per Act 344/1992 Coll.
APR (Annual percentage rate of charge). This is a percentage value that allows you to assess whether the loan is advantageous or unfavorable. It expresses the percentage that the debtor pays to the creditor per year. The APR is related to repayments, administration and other costs associated with drawing a loan.
Liability. The guarantor undertakes that in the event that the debtor does not satisfy the creditor’s claim, they willt take over the debt responsibility. The liability will fall on the guarantor.
Guarantor. A legal entity or an actual person who assumes the obligation to satisfy the creditor’s claim, if the debtor is unable to satisfy the loan himself.
Penalty fee. Penalty for non-compliance with contractual conditions.
Price list of all fees associated with the administration and management of the loan provided.
Společenství vlastníků jednotek (SVJ)
Housing association (literally Association of Unit Owners. A legal entity that is in charge of all rights associated with the administration, operation and repair of common parts of a building (typically an apartment block).
Smlouva o převodu
Transfer agreement. The main contract that transfers a property from the seller to the buyer. It is a bilateral agreement between the transferor and the transferee, which must be in writing and must contain the identification of the parties involved and the subject of the transfer.
Contractual penalty. A financial penalty for non-fulfillment of agreed conditions.
Snímek katastrální mapy
Image of the land registry (katastra) map. A public document in the form of an image of the land registry, which can be taken manually, reprographically or by computer.
Společné části domu
Communal areas in a building. Shared areas such as the stairs, laudry or drying rooms, basements, all vertical distribution of water, waste, gas, electricity and more.
Společné jmění manželů (SJM)
Literally Joint Property of Spouses. This is a jointly acquired property for the duration of a marriage. Ownership is divided equally. An exception is a property acquired by inheritance, gift, restitution or the right to property acquired during the marriage which can be contractually adjusted. If a property is acquired in one of these ways it belongs to only one of the spouses.
Co-borrower. Someone who is willing to participate in the repayment of a debt together with the debtor.
Consumer credit. A loan that is provided to individuals and is intended for the purchase of goods or for spending on holidays, living costs while studying, etc.
Building Society. This is a financial institution, similar to a bank, but one that does not have the right to dispose of or trade in client deposits, but must invest client deposits only with reliable financial institutions. Furthermore, it can only buy liquid government securities.
Construction loan. A bridging loan that is provided for the commencement or completion of construction and is secured against a property and / or insurance. After the completion of construction the loan is repaid / replaced with a regular mortgage.
Receipt. Document confirming receipt of a financial amount.
Term deposit is usually a one-time deposit placed in a bank account to ensure a better rate of interest. This money cannot be withdrawn for a set period without a worse rate being applied.
Land plot type. There are two basic types of land plot; a parcel of land registry real estate (katastr nemovitostí or KN), which is registered with all data or a parcel registered in a simplified way (zjednodušená evidence or ZE), which is registered with only selected data.
Interest. What the bank charges for lending money. A reward for loaning money.
Úrok z prodlení
Interest on arrears. The amount due to the creditor if the debtor is in arrears. It is used by the creditor to force timely payments.
Interest rate. The interest rate expresses the share of interest on the borrowed amount, that is the ratio of interest to the size of the loan. Usually shown in % for the year (p.a).
Interest rate. The interest rate indicates how much the borrower is obliged to pay from the principal for a specified period of time for the provision of the loan. It is expressed as a percentage.
The actual amount paid as interest over the agreed period. If you borrowed $10 and had to pay it back in a year at 10% interest. You would have to pay $11 total. The úroková splátka is $1.
Interest period. The period for which, in addition to the principal payment, the interest payment is also paid.
Typy úrokových sazeb
Types of interest rates
Základní – Basic. The standard rate of interest offered by individual banks. It is influenced by the base rate and changes in money market rates.
Diskontní – Base rate of interest announced by the central bank (Česká Národní Banka) and used in the provision of loans to other banks or the state. It is only for banks and the state.
Mezibankovní sazba PRIBOR – PRIBOR interbank rate is determined on the basis of fixing the interest rate offers of selected banks operating on the interbank deposit market in the Czech Republic. It is determined by the Central Bank.
Úředně ověřený podpis
Officially certified signature. A signature that is made and verified before an official body (such as a notary or at a CzechPoint at the Post Office).
Literally ‘credit property’. This is a property acquired or renovated / modernized through a loan.
Úvěrový limit, rámec
Credit limit, framework. The amount of credit or how much can be borrowed. The limit must not be exceeded.
Loan promise. The bank’s promise in writing to provide the client with a loan if agreed conditions are met.
Credit account. An account with a creditor (bank) where the entire course of drawing and repayment is recorded.
Uznání podpisu za vlastní
Literally, recognition of the signature as its own. Declaration of that a signature is genuine and belonging to the correct person.
Encumbrance. A restriction on the debtor’s right to a property. It is often caused by someone (not the owner) making a claim against the property.
Creditor. Entitled to demand repayment from the debtor.
Binding. Cannot be changed or cancelled without the agreement of all parties.
The depositing of a form at the land registry office that requests a change in ownership be made.
Všeobecné obchodní podmínky
General Terms and Conditions that govern the agreement between the contracting parties. They are an annex to the contract and supplement the conditions that are not specified in the contract.
Plot of land area. A way to express the area of a piece of land in metric units rounded to the nearest square meter. The area of the plot is recorded using a standard method with a specification that does not affect legal rights as per Act 344/1992 Coll.
Securing a loan. Guaranteeing that a debt will be repaid, usually by using property as security (you may lose the property if you don’t pay back the loan), however other methods of securing a loan are possible.
Security against a loan. For example, a mortgage often uses a property as collateral in the event that the debtor does not pay the debt.
Pledger. The owner of the subject of the pledge.
The right to take the security used against a defaulted loan.
Pledgee. The person who accepted the subject of the pledge in the case of securing a claim.
Závazné údaje katastru nemovitostí
Binding data of the land registry (katastra). Data in the state land registry which is determined as binding for legal acts on real estate.
Zjednodušená evidence parcel
Simplified plot registration in the land registry. A temporary set of descriptive information for a property in the state land registry (katastra). It is kept in a simplified way such that the boundaries are not part of the land registry maps, but instead are only recorded in previous real estate records.
Způsob ochrany nemovitostí
Literally, method of real estate protection. A way to protect significant or special buildings from reconstruction or demolition, for example historic buildings and monuments.
Způsob využití nemovitostí
Literally, manner of using real estate. Information that is listed in the land registry (katastra) which describes the way a piece of real estate is used.
Testator. A deceased actual person, whose death passes their rights and obligations on to their heirs.
Žadatel o úvěr
Loan applicant. This person must have legal freedom (for example not a minor) and be a permanent residence in the Czech Republic. The applicant for a loan can be more than one person (for example, co-applicants) or a legal entity (for example, a company).
Garden cottage. A building designed for holiday use with a built-up area to a maximum of 110 m3 and a footprint no bigger than 25 m2, including verandas, terraces, entrances, and basements. It can have only one floor, plus a basement and an attic.