Withdrawal from a contract (odstoupení od smlouvy)

The bank presents the client with a draft contract for a CZK 4,000,000 mortgage at 5.00 %. For 14 days it may not change or withdraw it, and the client has time to compare it with other offers. Once the client signs, there is no statutory right to withdraw without reason. The only way out of the mortgage is early repayment (outside the free windows, up to 0.25 % of the repaid amount per started year until the end of the fixed-rate period, max. 1 %).

During the 14-day reflection period (doba na rozmyšlenou) before a mortgage is signed, the bank may not change or withdraw the draft contract it has presented (§ 111).

Withdraw in writing by registered post, ideally with proof of delivery. For a consumer's 14-day withdrawal period (§ 1818 of the Civil Code, § 118 of Act No. 257/2016 Coll.) the date of dispatch is what counts; otherwise withdrawal takes effect only when it reaches the other party (§ 570). With a purchase agreement, withdrawal is more complicated, because after registration in the land registry ownership must also be transferred back and the refund handled through escrow. Never withdraw from the mortgage while the purchase agreement still obliges you to pay the price.

Withdrawal cancels a contract from the outset, whereas termination by notice (výpověď) ends it only for the future. The end of a reservation agreement is usually governed by the agreement itself (forfeiture of the fee); for consumer credit other than for housing the consumer has a 14-day no-reason period directly by law, but not for a mortgage loan agreement.