Real estate types

Before you start investing your money into abroad real estate, it's wise to review all types of property the country has, and, basing on the result of this review, to plan further business strategy. By doing this you can avoid numerous mistakes and unwanted expenses. Czech Republic has the following type of property:

• State property
• Private property
• Shared property
• Cooperative property.

State property usually consists of apartments in non-privatized houses. Most attention should be paid to the fact that Czech Republic doesn't allow to privatize the single apartment, the whole house should be made private instead. Besides, the privatization process for houses requires a lot of time and documents processing. Purchasing an apartment of state property you're not becoming its owner, but leaser instead, so investing in such property wouldn't bring high profits, as house privatization may not happen soon.

The most reliable and promising option in terms of investments is private property. The following documents can confirm the ownership:

• Ownership certificate
• Excerpt of property registry stating the ownership of particular property

It's vital to figure out whether the house or apartment is not being under the pawn, the house is not divided into independent property units which are sold separately and you're getting ownership rights and not leasing right by which you can live in the house or apartment but won't be an owner.

The most unclear type of property is shared property. Normally this property type is used for multi-apartment houses. In this option there is no clear owner, as both apartment owner, house owner, community manager and other persons have rights on the property. Moreover, without the agreement of all these parties the decision of selling an apartment can't be made. Purchasing such an apartment you are not become an owner, but a participant of the community with voting right. Actual owner of the apartment will remain unchanged being the house owner. Besides, when the decision is made on change community memebers (like when the apartment is being sold to someone), it will sometimes 75% of votes for the decision to be made, so even after you've dealt with all the details, your purchase may fail.

Cooperative property is similar to shared property, but it's easier to deal with all the right with this option. You're also purchasing a share instead of an actual apartment, but there are no majority rules and no central decision maker. The only problem that may appear is when the house will be privatized – members of the house community may rightfully declined the privatization and this decision will not be changable. What's even worse is that every share holder should pay their own share during privatization process, this making this procedure never-ending in terms of years needed. When purchasing cooperative property you may face the following problems: to high monthly fee and prohibition of purchase by compnaies, which should be stated in the documents.