The 48 Hours Before You Sign a Reservation Agreement

11/02/2026

In Prague's property market, the real pressure does not begin after you sign the reservation agreement.

It begins approx 48 hours before.

This is the phase where emotion, financing reality, legal structure, and liquidity collide. For expat buyers in particular, these two days often determine whether the transaction becomes a smooth acquisition — or an expensive mistake.

Here is what is actually happening behind the scenes.


1. The Financing Question Becomes Real

Up until this point, mortgage discussions may have been theoretical.

Now they are binary.

  • Do you qualify?

  • At what loan-to-value?

  • Under which income assumptions?

  • Under what conditions?

For expats, this is where uncertainty intensifies. Foreign income, currency exposure, employment structure, or short local history can materially change borrowing capacity.

Many buyers overestimate what banks will lend.
Others underestimate the documentation required.

In the final 48 hours, clients often realize:

"Approval in principle" is not the same as structured pre-approval.

And without clarity here, signing becomes a calculated risk.


2. Liquidity: The Deposit Is Not Just a Formality

Reservation deposits in Prague are typically meaningful — often 3–5% of the purchase price.

Before signing, you must be certain:

  • Funds are immediately available

  • Transfers can be executed without delay

  • Currency conversions (if needed) are planned

  • No compliance friction will block movement of funds

For expats holding capital abroad, this step is frequently underestimated. International transfers, FX timing, or bank compliance reviews can introduce delays precisely when speed is expected.

In competitive situations, hesitation can cost the deal.


3. Legal Structure of the Property

The property itself must withstand scrutiny before any reservation is signed.

Critical checks include:

  • Ownership verification in the Land Registry

  • Encumbrances, liens, or easements

  • Building compliance documentation

  • Unit definition (especially in mixed-use buildings)

  • Co-ownership structures

Many issues are not dramatic — but structural.

A unit can be attractive, well-priced, and still carry legal complications that affect financing or resale liquidity.

These questions must be clarified before the deposit becomes exposed.


4. The Reservation Agreement Itself

The reservation contract is often treated as a simple administrative step.

It is not.

In the final 48 hours, careful review should focus on:

  • Conditions for deposit return

  • Financing contingency clauses

  • Defined timelines for mortgage approval

  • Obligations of buyer and seller

  • Penalty structures

For expats unfamiliar with Czech transaction practice, assumptions based on other jurisdictions can be misleading.

Not all reservation agreements protect the buyer equally.


5. The Emotional Layer

There is also the psychological component.

You like the apartment.
You imagine living there.
The agent mentions another interested buyer.

Pressure builds.

This is precisely when structured decision-making matters most. The final 48 hours should not be about excitement — they should be about confirmation:

  • The numbers work

  • The financing is realistic

  • The legal structure is clean

  • Liquidity is secured

  • The contract terms are acceptable

Only then does signing become a strategic move rather than a gamble.


Why This Phase Is More Complex for Expats

Local buyers often operate within a familiar system:

  • Domestic income

  • Established banking relationships

  • Easier documentation flow

  • Immediate access to CZK liquidity

Expat buyers navigate additional layers:

  • Cross-border income assessment

  • Currency considerations

  • Translation requirements

  • Different legal expectations

This does not make the process prohibitive.
It simply increases the importance of clarity before commitment.


The Real Purpose of the 48 Hours

These two days are not about rushing.

They are about alignment.

If financing, legal structure, and liquidity are aligned, the reservation agreement is a logical next step.

If they are not, those 48 hours are your final opportunity to step back — without financial consequence.

In Prague's property market, speed is valued.
But disciplined preparation is what protects capital.

And for expat buyers, those 48 hours before signing are often the most important part of the entire transaction.

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