Can I find my own buyer for a property in execution instead of auction?
Published 14 November 2026
Yes, you can sell a property in execution to your own buyer before the auction takes place, but only with the executor's consent and if the purchase price covers all debts. Once an enforcement order (exekuční příkaz) is issued, you cannot freely dispose of the property (Enforcement Code No. 120/2001 Coll.). The good news is that there is usually several weeks to months between the enforcement order and the auction, so you typically have time to negotiate a sale.
Summary
- Selling to your own buyer before auction is possible if the executor agrees and debts are covered from the purchase price.
- Money should not go directly to you but through attorney or notary escrow, from which creditors and the executor are paid first.
- Auction is usually the most expensive option for a debtor because enforcement costs and creditors receive priority from proceeds.
- Ownership transfers only upon registration with the Czech Land Registry (Katastr nemovitostí); expect approximately three weeks.
- Never sign anything under time pressure, especially quick loans secured by mortgage or sale-and-leaseback arrangements.
Why selling without auction is possible at all
Enforcement proceedings on a property do not automatically lead to auction. The executor's primary interest is recovering the debt, not holding an auction.
After an enforcement order is served, you cannot deal with the property in ways that would obstruct enforcement (Section 44a, Enforcement Code No. 120/2001 Coll.). An unsanctioned sale would therefore be risky for both you and the buyer. However, if the executor agrees and the debts are covered from the purchase price, there is nothing preventing a buyer you find yourself from purchasing the property.
For a comprehensive overview of enforcement proceedings, see the article Enforcement on property: how it works and what to do at each stage.
Step-by-step process
The entire sale can be broken down into several practical steps that build on each other.
- Find out how much you owe. Ask the executor (or all executors if there are multiple) for a current calculation of the debt including enforcement costs. From the Czech Land Registry (Katastr nemovitostí) extract, you will identify who else holds mortgage rights or other encumbrances on the property.
- Have the property valued. The price you agree with the buyer should correspond to its actual market value. The executor and creditors will question why the property should be sold below that value.
- Find a buyer. It could be an acquaintance, neighbour or someone responding to your advertisement. The buyer must know that enforcement proceedings are pending on the property, and the contract must address this openly.
- Ask the executor for approval. Present your plan, the proposed price and payment method. The executor will assess whether the purchase price will cover their claims and those of registered creditors.
- Draw up contracts and arrange escrow. The purchase price is placed in attorney or notary escrow with clear instructions on who receives payment and in what order.
- File for registration. Ownership transfers only upon registration with the Czech Land Registry (Land Registry Act No. 256/2013 Coll.).
- Settle debts and resolve the remainder. After registration, debts are paid from escrow and any surplus is transferred to you.
For more detailed guidance, see Selling a property in execution: process with executor approval.
How price is agreed and how funds are disbursed
The price should be high enough to cover the debts, and funds should not reach your hands before creditors are satisfied.
It is worth discussing with the executor what price they would consider acceptable. For reference: at auction, the minimum bid is two-thirds of the final hammer price (Section 336e, Civil Procedure Code No. 99/1963 Coll.; applied by analogy to enforcement). Selling to your own buyer therefore usually makes sense if you can achieve a comparable or higher price.
Payment proceeds via escrow only. Cash payments are limited to CZK 270,000 per day (Act No. 254/2004 Coll.), so the property purchase price cannot realistically be paid in cash. If someone offers to hand you money in an envelope, treat that as a serious warning sign.
From escrow, payments are typically made in this order: first, claims secured by mortgage (zástavní právo) and enforcement costs as instructed by the executor, then other creditors, and finally any surplus to you. The exact order always depends on the specific situation and the executor's instructions.
Advantages and risks versus auction
Selling to your own buyer gives you more control over price and timing, but requires cooperation of multiple parties.
| Aspect | Selling to your own buyer | Auction |
|---|---|---|
| Price | Negotiated, can be closer to market value | Determined at auction, minimum bid is two-thirds of final price |
| Costs | Usually lower | Usually the most expensive option for the debtor |
| Timing | You can partially influence it | Set by the executor |
| Approval | Executor's consent required, often also other mortgagees | Not needed |
| Risk | Buyer may withdraw or sale may be delayed | Price may be significantly below property value |
The main risk is timing. If the buyer delays on financing or the land registry takes longer to process the registration, the auction may proceed meanwhile. The land registry cannot decide before 20 days from notifying the owner, and average registration takes about 22 days. Factor this into your timeline.
You can calculate the preliminary difference with our calculator: auction versus private sale.
What to watch out for
The greatest losses occur when a debtor signs the first offer that promises to 'save' the property.
- Quick-fix offers, such as loans secured by a mortgage or sale-and-leaseback (zpětný leasing) arrangements, can worsen your situation significantly. More details in Sale and leaseback of property: risks.
- Never sign anything under time pressure and without reading the full contract carefully. Have it reviewed by a lawyer.
- Do not accept down payments in cash outside of escrow.
- Transfer tax (daň z nabytí nemovitých věcí) was abolished (Act No. 386/2020 Coll.), so the buyer does not pay it. Your proceeds may, however, be subject to income tax under Act No. 586/1992 Coll. (depending on how long you owned the property and whether you lived there as your primary residence). Verify this with the Tax Authority (Finanční správa) or a tax adviser.
- The general pre-emption right (předkupní právo) of co-owners (spoluvlastníci) was abolished years ago. It now applies only for six months from when a share arises through inheritance (Section 1124, Civil Code No. 89/2012 Coll.).
What to do now
The key is to obtain accurate figures and contact the executor promptly before auction is scheduled.
- Gather your enforcement order, a list of all enforcement proceedings and a current Czech Land Registry extract.
- Request a detailed debt calculation from the executor and from any mortgagees.
- Find out the approximate market value of the property and compare it to the total debt.
- Only then approach potential buyers and have all contracts reviewed by a lawyer.
If you are unsure how to proceed, complete the assessment form below the article. You will receive a free preliminary offer or situation review. You can also request this via Free situation assessment. This website content is informational only and does not replace professional legal advice.