How to buy a flat step by step

Where do you start when buying a flat?

Buying a flat starts not with browsing listings, but with an honest assessment of your own financial capacity. Before you fall in love with a particular property, it pays to know how much you can realistically put towards the purchase price as well as the additional costs, which can amount to several percent of the property's value.

At this stage you answer three questions: how much do I have saved for the down payment, what monthly instalment can I afford to repay, and am I buying with cash or with a mortgage. The answers will define the price range in which it makes sense to search.

How do you set your budget and check creditworthiness?

The budget for a purchase is not just the price of the flat. It is the sum of the price, transaction costs and any renovation and furnishing. If you finance the purchase with a mortgage, creditworthiness is key, that is the bank's estimate of what instalment you can repay given your income and liabilities.

Down payment and savings

Banks usually require a down payment of roughly around 10-20% of the property's value, depending on the bank and the borrower's situation. Beyond the down payment, it pays to have a reserve for around-purchase costs and the first expenses after moving in.

Assessing creditworthiness

Creditworthiness is affected by income, form of employment, number of dependants, other loans and card limits, and your history at BIK (the Credit Information Bureau). Before you apply, it pays to check your report at the Credit Information Bureau and settle any small arrears that may lower your score.

Primary or secondary market - which to choose?

The choice between a new flat from a developer and a property on the secondary market depends on your priorities. Each option has different legal, tax and practical consequences.

• Primary market: a flat from a developer, usually in developer standard awaiting fit-out; the purchase involves a developer contract and the protection provided by buyer-protection rules.
• Secondary market: a used flat, often ready to move into; it requires a thorough check of its technical and legal condition as well as the property's history.

On the primary market VAT is usually added to the price, while on the secondary market the transaction is usually subject to the PCC tax (tax on civil-law transactions). It pays to factor these differences in at the budget-planning stage.

How do you check a flat's legal status?

Before you pay a deposit, check who really owns the property and whether it is encumbered. The basic tool is the land and mortgage register, kept in line with the Act on Land and Mortgage Registers and Mortgages. In it you will find data on the owner, the floor area, mortgages and any third-party claims.

On the secondary market it also pays to ask for a certificate confirming there are no arrears in payments to the housing community or cooperative, and a certificate confirming no one is registered as resident. For a cooperative ownership flat, you additionally check the property's legal status within the cooperative.

How do the preliminary contract and notarial deed work?

Once you have chosen a property and agreed a price, the next step is usually a preliminary contract. It secures the transaction while formalities are handled, for example obtaining a mortgage. The contract sets out the price, the deadline for concluding the final contract, and the amount of the deposit (zadatek) or advance (zaliczka).

Deposit versus advance

These are two different mechanisms. As a rule the deposit (zadatek) is forfeited to the seller if the buyer withdraws without cause, and in the reverse situation the seller returns it in double. An advance (zaliczka), by contrast, is usually simply returned. It pays to choose consciously which form to use.

The deed transferring ownership

Ownership of a property is transferred solely in the form of a notarial deed. The notary checks the documents, the identity of the parties and the land and mortgage register, collects the due taxes and fees, and files an application to enter the new owner into the land and mortgage register.

How much does buying a flat cost beyond the price?

Additional costs can surprise first-time buyers. The table below shows the most important items to keep in mind when planning your budget.

On top of this come mortgage costs, such as the bank's commission, insurance and the property valuation. We discuss the detailed list in a separate article on purchase costs.

What should you do at handover and after the purchase?

After signing the notarial deed, practical formalities remain. On the primary market you take over the flat via a handover protocol, in which you note any defects for the developer to fix. On the secondary market it pays to record the meter readings and hand over a full set of keys.

Next you transfer the utility contracts, notify the housing community or cooperative of the change of owner, and update your details at the office for property-tax purposes. If you bought on the secondary market, you usually file the return and pay the PCC tax yourself, unless the notary does it for you.

Summary: how to buy a flat smoothly

A successful flat purchase is the result of a series of considered steps, not one quick decision. Start with a realistic assessment of your budget and creditworthiness, and only then view listings. Always check the legal status in the land and mortgage register and do not skip the additional costs.

Handle the key formalities - the preliminary contract and the notarial deed - at a notary, who safeguards the transaction. If you finance the purchase with a mortgage, plan the schedule so the bank's decision is ready before the deadline for the final contract. That way you will move through the whole process calmly and without costly surprises.