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

Answered by , Czech and Slovak attorney, admitted to the Slovak and Czech Bars (SAK 300422 · ČAK 19654).

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. What must a contract transferring a newly built flat contain? A contract transferring ownership of a flat must be written. Under the Flat Ownership Act, it must include in particular a description of the flat and its appurtenances, the co-ownership share in the building’s common parts and facilities and the land, arrangements for land rights, and the acquirer’s declaration of accession to building management. Ownership is acquired only through constitutive registration in the Land Register.
  2. We built a building but the Land Register has not recorded it. What usually went wrong? A document error must be distinguished from a documented change of ownership. Under § 46, the Land Register records the person named in the relevant document unless another public or other document proves a different owner. A difference between the person undertaking the building named in the permit and the current owner therefore does not automatically require correction of the old permit. If the documents contain an actual error or fail to prove ownership, however, they must be corrected or supplemented; disputed ownership may require court proceedings.
  3. The bank requires a building under construction to be registered. How does this work? A building under construction is recorded in connection with the creation, change or termination of a right to it, typically for bank security or a transfer. Under § 46(3), the expert report must clearly establish the structural and functional layout of the first above-ground storey. The relevant permitting document under the new or transitional building-law regime must also be submitted. The building’s initial entry must be distinguished from constitutive registration of a contractual mortgage; waiting for occupancy approval is not itself a prerequisite.
  4. The municipality assigned a building number to a shelter. Does that mean the Land Register will record it? No. Municipalities assign building numbers under their own rules, while the Land Register records buildings under the Cadastral Act; the categories do not coincide. It records buildings attached to the ground by solid foundations, with or without a building number; buildings under construction in connection with the creation, change or termination of rights; and underground structures where they intersect the ground surface. If eligibility is disputed, the Slovak Geodesy, Cartography and Cadastre Authority decides.

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

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