Legal Q&A · Construction & Development

How does an agreement to enter into a purchase contract work for flats in a development?

Law as at 21 July 2026

Short answer

In an agreement to enter into a future contract, the parties undertake in writing to conclude a purchase contract by an agreed date and must already agree its essential terms, especially the property and price. If one party fails to conclude it, the other may seek a court decision substituting for that party’s declaration of intent within one year, and also has a right to damages. In development projects, a reservation agreement usually comes first.

What must an agreement for a future contract contain?

Under § 50a of the Civil Code, the parties may undertake in writing to conclude a contract within an agreed period; they must also agree its essential terms. For the future purchase of a flat, this means in particular identifying the flat precisely (including one under construction, by reference to the design and future number), the purchase price, the deadline for concluding the purchase contract and the conditions. Without agreement on essential terms, the agreement for a future contract is unenforceable.

What if the other party fails to conclude the contract?

If the purchase contract is not concluded within the agreed period, a party may apply to the court within one year for a judgment substituting for the declaration of intent; the right to damages is unaffected (§ 50a(2)). However, the obligation terminates if the circumstances on which the parties relied change so significantly that concluding the contract can no longer fairly be required (paragraph 3).

In what order are contracts signed in a development?

In practice, the usual sequence is: reservation agreement (the prospective buyer reserves a flat and pays a reservation fee) → agreement to enter into a future purchase contract (bindingly fixes the flat, price and conditions during construction) → purchase contract after completion, occupancy approval and creation of the flat as a separate unit. The future-contract agreement thus protects the buyer (certainty over the flat and price) and the developer (a binding sale commitment).

Practical recommendation

The key is to connect the future contract to the design, construction programme, payment schedule and protection of the buyer’s advance payment. We prepare sale documentation through flat sales in a development project, handle the reservation stage through a reservation agreement and also prepare a standalone agreement to enter into a future contract.

This answer provides general information on the law as at 21 July 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.

More legal questions

All questions and answers
  1. We built without a building permit in the 1990s. Can the building still be legalised? Usually yes. On the owner’s application, the building authority reviews a building erected and used without permission between 1 January 1990 and 31 March 2025 and, if statutory conditions are met, issues a decision with the effects of occupancy approval. Applications are possible only until 31 March 2029, and the conditions are substantive: if they are not proved, the authority orders demolition. It is therefore worth assessing prospects before approaching the authority.
  2. The authority returned our minor-building notification. Can we challenge this? Yes. Returning a notification is not a decision, so an ordinary appeal is unavailable. However, Act No. 25/2025 Z. z. allows the applicant to request a review of the administrative authority’s procedure. The request must reach the appellate authority within 10 working days of delivery of the returned notification and include the notification as originally submitted. If the procedure was incorrect, the notification is returned to the authority with instructions to process it.
  3. We bought a house in a heritage zone. What can we do without involving the heritage authority? Less than people expect, depending on the regime. For a house in a heritage area, a regional heritage authority decision approving the proposed alteration is needed before new construction or alterations, even if the house itself is not a monument. In a buffer zone, a binding opinion is required instead; for a cultural monument, a decision on the restoration proposal is required. The common rule is: obtain the decision on the proposal first, then commission the design.
  4. We built exactly to the employer’s design and the works are defective. Are we liable? Yes, if you failed to warn that the design or instructions were unsuitable although professional care would have revealed this. The defence “we followed the design” is not enough: the Commercial Code exempts a contractor only where it warned the employer, who then insisted in writing on using the items or instructions. Work must be suspended as necessary until the employer decides. A provable warning and the employer’s written insistence are therefore crucial; the site diary is the natural place to record them.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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