What are the costs of property execution: breakdown and payment order from sale proceeds
Published 27 October 2026
The property sale proceeds in execution are first applied to the costs of proceedings and auction, then to secured creditors and claimants including execution costs. Only any remainder goes to the debtor. Whilst the exact amount cannot be calculated in advance, you can understand the cost components and the order in which they are paid.
Summary
- Execution costs comprise the executor's fee, documented expenses, valuation fees and publicity costs, and possibly legal representation fees.
- Auction proceeds are distributed in statutory order; the debtor comes after creditors and costs are satisfied.
- The exact cost amount is determined by the specific case and the executor's final account, not by a general table.
- Sale before auction with executor's consent can avoid some costs that an auction entails.
- Do not sign any offer of quick rescue in panic; the situation can be assessed for free.
What counts as property execution costs
Execution costs are governed by the Code of Enforcement Proceedings (Czech: Exekuční řád č. 120/2001 Sb.) and the implementing regulation on the executor's fees and reimbursements. The obligated party (debtor) generally bears them along with the debt itself. In execution by property sale, your file will typically include these items:
- executor's fee – set by legal regulation, usually based on the amount claimed or the sale proceeds;
- documented expenses of the executor – for example, postage, extracts and other documented expenses;
- costs of property valuation – expert appraisal determining the auction price;
- costs of auction publicity – auction notice, service and posting;
- costs of the claimant – for example, legal representation of the creditor, if awarded;
- register fees and costs connected to the Land Registry – mainly recording of pledges or enforcement orders.
We deliberately do not state specific amounts here. They depend on the debt amount, property value and the course of proceedings, and are listed in the decisions and accounts in your file.
Breakdown of individual items
| Item | What it includes | What it depends on |
|---|---|---|
| Executor's fee | Fee for conducting the enforcement | Amount of claim and proceeds, regulation |
| Documented expenses | Provable costs, e.g. postage, extracts | Number of actions and participants |
| Property valuation | Expert appraisal of value | Type and complexity of property |
| Auction publicity | Auction notice, notification, service | Method and scope of publicity |
| Site visit (inspection) | Inspection and determination of property condition, if applicable | Difficulty and circumstances |
| Legal services | Representation of creditor, possibly debtor | Complexity of case, decision on cost recovery |
| Register | Entries and fees relating to the property | Type of entry, current fee schedule |
Court and administrative fees change, so always verify them in the current version of the regulations or at the relevant authority.
The order of payment from auction proceeds
Auction proceeds are distributed according to a distribution scheme (Czech: rozvrh). The rules are in the Code of Civil Procedure (Občanský soudní řád č. 99/1963 Sb.) – provisions on distribution of proceeds, § 337c onwards – which are applied proportionately in enforcement proceedings. Briefly:
- costs of proceedings and auction – that is, what had to be spent on the sale itself;
- secured creditors – for example, a bank with a mortgage on the property, in the statutory order;
- claimant and other registered creditors including ancillary claims and enforcement costs;
- any remainder goes to the obligated party – the debtor.
The exact order may depend on the type of claims and when they arose. It is therefore wise to ask for the distribution scheme to be explained in your specific case.
How to calculate real net proceeds
You can make an indicative calculation even without knowing the exact costs:
- Take the expected auction price. The minimum bid is two-thirds of the final price (§ 336e of the Code of Civil Procedure, applied proportionately in enforcement), so the price realised may be lower than market value.
- Deduct the costs of proceedings, valuation and publicity.
- Deduct secured debts, for example a mortgage.
- Deduct the claimed debts and enforcement costs.
- Any remainder is the amount that could remain for you.
Often it turns out that after all obligations are met, little or nothing is left. A calculator comparing auction and sale before auction will help, where you can enter your own data from the file.
Register fees and transfer of ownership
In a voluntary sale, ownership is transferred by entry in the Czech Land Registry (Czech: Katastr nemovitostí). The cadastral office cannot decide before 20 days from notifying the owner (Cadastral Act č. 256/2013 Sb.); the average registration time is about 22 days. The fee for a registration application is governed by the current fee schedule.
In an auction, the acquisition of ownership is governed by the court order on the knock-down under the Code of Civil Procedure (Občanský soudní řád č. 99/1963 Sb.) and is entered in the register by registration based on the judgment. The transfer tax was abolished (Act č. 386/2020 Sb.), so neither buyer nor seller pays it.
For income from property sale, income tax may apply under the Income Tax Act (Zákon č. 586/1992 Sb.). The time-based test and use of the property as a dwelling are decisive. Leave the specific assessment to the Tax Authority or a tax adviser.
How to reduce costs
Auction is usually the most expensive option for the debtor: between the enforcement order and the auction, weeks or months pass, but costs and ancillary charges continue to accrue. Options:
- Sale with executor's consent – the procedure is described in sale of property in enforcement, step by step. The purchase price does not have to follow the two-thirds rule and some auction costs fall away. Payment must be made cashless through solicitor's escrow; cash payments are limited to CZK 270,000 per day (Act č. 254/2004 Sb.).
- Payment of the debt – if you have a source, see paying off enforcement.
- Knowledge of the entire process – you will find the overview in enforcement on property.
Beware of offers of quick rescue, such as loans against pledge or sale-and-leaseback. They may make the situation worse, so sign nothing in panic. The content of this website is informational and not legal advice; a free non-binding assessment is available via the form on the website.