Signing the mortgage agreement (podpis smlouvy)
The moment the client concludes the loan agreement with the bank; the pledge agreement and the application to register the lien are usually signed at the same time. Under § 111 of Act No. 257/2016 Coll. you have 14 days before signing to think it over, during which the bank may not change or withdraw its offer. The post-signing withdrawal period known from consumer loans does not apply to mortgages.
Example
On 1 October the bank gives you a draft agreement for CZK 4,000,000 at 5.00 %. Until 15 October the offer cannot change, even if the bank raises its prices in the meantime. After signing, the application to register the lien is filed (fee CZK 2,000), the land registry puts a pending-change flag on the title sheet, and it may make the entry no sooner than 20 days after notifying the owner. The bank sends the money to the seller only once the drawdown conditions are met.
In practice
Before signing, check the agreement against the pre-contractual information form: rate, length of fixation, fees, discount conditions and the drawdown deadline. Find out what happens if you stop meeting the conditions for the rate discount. Bring both identity documents and the property insurance policy to the appointment. Signing without knowing the last drawdown day can leave you chasing an extension when the purchase agreement is delayed.
How it differs
Signing is not the same as approval: pre-approval is only a preliminary promise, and what binds is the signed loan agreement. The thinking time differs from withdrawal from a contract in that it runs before signing, not after. Once signed, the loan can be ended only under its terms or by early repayment.
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