Buying an Off-Plan Flat: Construction Schedule, Delays and Protection

When buying a flat under construction, three things matter most: the completion and handover date set out in the contract, how the purchase price is paid, and what happens if the developer misses the deadline. Construction delays are not unusual and are not necessarily a problem in themselves. What matters is whether the contract sets out clear rules and whether your money is protected.

What a typical construction schedule looks like

An apartment building goes through several stages, and each carries its own risks. In general, the process can be divided as follows:

1. Preparation and permits – design, zoning decision and building permit. If the permit is not yet final and legally binding, the start date of construction is only an estimate.
2. Start of construction – earthworks and foundations.
3. Shell construction – load-bearing structure, floors and ceilings, roof.
4. Finishing works – façade, windows, utility installations, floors, plastering.
5. Final approval (kolaudace) – confirmation that the building can legally be used.
6. Handover of the flat – inspection, list of defects and receipt of the keys.

Do not confuse the completion date of the construction, the final approval and the handover of the flat. They can be weeks or even months apart. What matters to you is when you can actually take over the flat and move in, and when you may have to start repaying your mortgage.

Why construction is delayed

The most common reasons are lengthy administrative proceedings, problems with contractors and subcontractors, fluctuations in material supplies, bad weather, or changes to the project during construction. Sometimes the developer's financial difficulties are behind a delay, and this is the most serious scenario.

Before buying, therefore, look at how the developer performed on earlier projects. In the overview of developers you can see which projects a company is preparing, and in the catalogue of projects you can compare how far along individual buildings are. A good sign is a building site where work visibly continues, rather than just a presentation with visualisations.

What to check in the contract

You should have a lawyer who specialises in property review the contract for a future purchase agreement, or the reservation agreement, before you sign. Focus in particular on these points:

• Handover date – whether a specific date is stated or only a time range, and how it is defined.
• Penalties for delay – whether the contract provides for a contractual penalty or a discount in the event of delay, and in whose favour it works.
• Right to withdraw – under what conditions you can withdraw from the contract and how quickly you get the money you paid back.
• Changes to the project – what changes to the layout, floor area or materials the developer reserves the right to make.
• Specification of the standard – floors, windows, bathroom fittings and other elements should be described specifically.
• Warranties and complaints – the length of the warranty and the procedure for defects.

You can find general guidance on the whole process in the buying guide.

How to protect yourself against losing money

The biggest risk with a flat under construction is that you pay a deposit or part of the price and the building work stops. So focus on where the money goes.

• Escrow – check whether payments are placed in a lawyer's or notary's escrow account, or in another separate account, and under what conditions they are released.
• Payments according to construction progress – instalments tied to completed stages are safer than a large deposit at the start.
• Security for the deposit – ask how the refund of the deposit is secured in case the developer fails to deliver.
• Ownership of the land – have an extract from the land register (katastr nemovitostí) checked, in particular whether the land is encumbered by a mortgage lien or another restriction.
• The developer's financial background – the stability of the company, how the construction is financed and its experience with earlier projects.

It is advisable to review the specific form of security and its legal effects with a lawyer. Do not rely only on verbal assurances from the seller.

Financing and delays: what to consider with a mortgage

A construction delay can also affect your financing. A bank usually pays out a mortgage in stages or only once certain conditions are met, and the validity of a loan commitment is typically limited in time. If the date is pushed back, you may end up paying rent while the deadline for drawing the loan is approaching.

Before signing the contract, therefore, discuss with a mortgage specialist how the bank handles drawdown for an unfinished property, how long the commitment is valid and what happens if the handover is postponed. You can get a rough idea of repayments in the calculator, but only the bank can tell you the binding terms. Also allow for a financial reserve in case you need to extend your current housing arrangements.

What to do if construction is delayed

1. Ask for a written statement – the new date, the reason for the delay and the status of the permits.
2. Check the contract – whether the delay entitles you to a discount, a penalty or withdrawal.
3. Inform your bank – in good time, so that the drawdown schedule can be adjusted or the validity of the commitment extended.
4. Keep track of the construction – a visit to the site and photographic documentation will show whether work is actually under way.
5. Consult a lawyer – before you sign an amendment that postpones the date or changes the terms.

Do not sign amendments under pressure. Postponing the date is often convenient for the developer, and for you it may mean losing the right to withdraw.

Taking over the flat

Even after construction is finished, the flat needs to be taken over carefully. Inspect it on site, ideally with an expert or technician, and record all defects in the handover protocol. Do not sign the protocol without notes if there are obvious defects. Also check whether the building has received its final approval and whether the layout and floor area match the contract.

If you are looking for a suitable location, browse the overview of locations. You can also get help with your search through the housing enquiry.

Frequently asked questions

Am I entitled to a discount if the developer misses the deadline?

It depends on the wording of the contract. Some contracts provide for a contractual penalty or a discount, others do not. That is why it is important to agree this before signing and to have a lawyer explain the terms to you.

Can I withdraw from the contract because of a delay?

The possibility of withdrawal depends on the contract and on how significant the delay is. Check the procedure and the consequences with a lawyer before you take any step.

When is it safe to pay a deposit?

It is safer to pay into escrow and in stages according to construction progress. Treat a deposit paid directly to the developer without secured repayment as risky, and consult an expert.