Selling property with a registered charge for a private family loan: how it works
Published 4 November 2026
Property with a registered charge (zástava) for a private family loan can indeed be sold, but the charge typically remains on the property until it is removed from the Czech Land Registry (katastr nemovitostí), which usually happens during the sale. The family lender is normally repaid from the purchase price. Legally, a private charge works exactly like a bank mortgage under Czech law, but there is often no formal procedure, so it is wise to arrange everything in advance and document it in writing.
Summary
- A registered charge (zástava) does not disappear on its own when you sell property; it remains on the house until it is removed from the Czech Land Registry.
- A private charge functions the same way as a bank mortgage under the Civil Code (Act No. 89/2012 Coll.), differing only in practice.
- The family lender typically confirms the remaining amount and signs a consent to removal, receiving payment from the lawyer's escrow account.
- Before selling, verify exactly what debt the charge secures and check whether any other encumbrances exist on the property.
What a registered charge for a family loan means
A registered charge (zástava) is a security interest that gives the lender priority rights to be satisfied from the property's value if the borrower fails to repay. It is governed by the Civil Code (Act No. 89/2012 Coll.), § 1309 onwards.
For real property, a charge is created by registration in the Czech Land Registry (katastr nemovitostí). If a family member lent you money and registered a charge on your house, this appears on the property's title as a registered charge in favour of that person. The lender need not be a bank; any private individual can be a charge holder.
Simply being registered does not prevent the property from being sold. However, the charge remains on the house, and any potential buyer would have to accept it unless it is removed. For this reason, the buyer and their legal adviser deal with removing the charge as one of their first priorities.
How a private charge differs from a bank mortgage
Legally, they are the same, but in practice the process differs when the charge is dealt with during a sale.
| Aspect | Bank mortgage | Private charge from family |
|---|---|---|
| Legal nature | Registered charge under the Civil Code | Same registered charge |
| Verification of debt | Bank provides a standard statement of the outstanding amount | Must be agreed with the family member and confirmed in writing |
| Consent to removal | Bank issues this after repayment | Family member must sign it personally, ideally with certified signature |
| Uncertainties | Terms are usually clearly documented | Loan agreement is often brief; interest and repayment terms may have been agreed orally |
The main difference is that with a family member, you often need to gather evidence of exactly how much is owed. For a broader overview of charges, see our page on buying property with a charge or debt.
How the charge is removed during sale and the lender is paid
The most common solution is to repay the debt from the purchase price and remove the charge from the Czech Land Registry once payment is made.
- Establish what the charge secures. Check the charge agreement and loan agreement. A charge may secure the principal only, but it can also cover interest, penalties, or other claims.
- Agree with the family member. Explain that you wish to sell and ask them for written confirmation of the current outstanding debt.
- Arrange the removal. The family member signs a consent to the removal of the charge, which is placed in escrow and used only after payment is made.
- Sign the purchase agreement. The agreement provides that from the purchase price, the family member's debt is paid first, and you receive the remainder.
- Application for registration. The Land Registry records the change of ownership and simultaneously removes the charge, in accordance with the Land Registry Act (Act No. 256/2013 Coll.).
- Payment from escrow. After registration, the lawyer's escrow account pays both the lender and you, the seller.
This way, the family member does not have to rely on a mere promise. The money is held in escrow, and the consent to removal is used only once the debt is paid.
How the family member will benefit and what changes for you
The family member will be repaid after the sale and their charge will cease to exist, provided you agree and the debt is paid.
A charge exists to secure a debt. Once the debt is repaid, the purpose of the charge disappears and it is removed from the Czech Land Registry. In doing so, the family member loses the security interest they held on the property, so it is understandable that they want clarity on when and how much they will receive.
Three things change for you: the house is no longer yours, your debt to the family member is satisfied, and you receive the balance of the purchase price. Ownership passes only upon registration at the Land Registry, which typically takes three to four weeks. Under the Land Registry Act (Act No. 256/2013 Coll.), the Land Registry office cannot decide before 20 days have passed from notifying the owner; the average registration time is roughly 22 days.
If the debt exceeds the purchase price, the difference must be paid separately or you must reach a different agreement with the lender. Such an arrangement should be in writing. If there is another charge on the property, such as a mortgage, the order of priority must be established and each lender must be paid. In such cases, our page on buying property with a mortgage may also be helpful.
What to watch out for
The most common problems arise from unclear information and oral agreements, not from the charge itself.
- Unknown debt amount. If you and your family member disagree on the sum, the sale will be delayed. Agree in writing.
- Unavailable lender. The consent to removal must be signed by the lender themselves, their representative, or heir. Contact them early.
- Other encumbrances. Check the title deed to see if there is another charge, easement, or execution order.
- Cash payments. Cash payments are limited to 270,000 CZK per day under Act No. 254/2004 Coll. Therefore, payment to the lender should be made by bank transfer, preferably through the lawyer's escrow.
- Taxes. Income from the sale may be subject to the Income Tax Act (Act No. 586/1992 Coll.), depending on factors such as how long you have owned the property or whether you lived in it. Check details with the Tax Authority or a tax adviser. The Transfer Tax on Real Property was abolished by Act No. 386/2020 Coll.
What to do now
Prepare your documents and clarify the debt amount with your family member, then the sale can proceed quickly.
- current extract from the Czech Land Registry (title deed),
- the charge agreement and loan agreement,
- a record of payments already made and written confirmation of the outstanding amount from your family member,
- contact details for your family member to sign the removal consent.
Our offer is provided within 24 hours, in writing and without obligation. Signing the contracts and deposit typically happen within one to three days, with the final payment following within five days of registration from the lawyer's escrow. We provide legal services free of charge, with no repair or emptying requirements. You can review the process on our How it works page or in our frequently asked questions. Obtain a non-binding offer or assessment of your situation using the form below the article.