Here I only want to talk about their “Closing Services”, as I don’t have a chance to try other services from them.
At the bottom of this page on their website, they list the pricing of their closing services:
There are two kinds of packages: Gold and Silver. Silver is cheaper but includes less services. If you just see the listed price on that page, they are really not much. However, please pay attention to those two small * signs, there is a comment with small font below, saying that is “for property values up to 3 000 000 CZK”.
Well, one of the * sign is placed on escrow (“jistotní účet” in Czech), which is understandable, because the bank usually charge 0.2%~0.3% of the property values for the escrow service. As for the other * sign, it is on their “Due diligence on Ownership and Contracts”. This is totally unreasonable, just want to ask them two questions:
- Will the “due diligence on ownership” become more difficult, if the property value is higher?
- Will the contract preparation become more difficult, if the property price is higher?
It is quite obvious that both answers are “NO”. However they charge more for buying property with higher values, even the work is totally the same. The worse thing is how they calculate the package price, if the house property value exceed the 3 000 000 CZK limit. This part is not mentioned at all on there web site. I know how they calculate it, because I purchased their Gold package once. They increased the package price by 1.2% of the house price above 3 mil CZK. Please notice, they are not increasing 1.2% of the package price, they are adding 1.2% of the house price above 3 million CZK!
Actual Package Price = Basic Package Price + (Property Price – 3,000,000) x 1.2%
This formula looks quite familiar, right? It is like a taxing system! The more you earn, the more tax you will pay! (the more expansive property you buy, the more you pay Czech Point 101)
In case you don’t have an idea how much the actual package price will be, please check out the table below:
Since I was trying to buy a house with price 10,550,000 CZK, they tell me that they will charge me 131,450 CZK+VAT!
I was shocked, how valuable their work would be, that they dare to charge me so much! I don’t agree with their pricing, I said this kind of calculation is not reasonable, but they don’t listen (Gin Khan Khup, the one who accepted my case, said it was the director who decide the price solely). After several emails, finally they agreed to offer me 100,000 CZK+VAT but without the escrow service from bank, and they also offer me to use their lawyer’s escrow account for free. If I knew how things will go at that moment, I will definitely refuse them and find another company (looking back now, I think their so call “lawyer” most probably does not exist, for me). However, there was another buyer who wants to buy that house, and I want to sign reservation with the seller ASAP. Being afraid of using another few days to find a new company and lose the house, I accepted their final price (100,000 CZK+VAT), and I paid upfront 50% (60,500 CZK) to their account.
So, I paid them 60,500 CZK without signing any contract with them. This is so wrong, but I did so because I trusted them by mistake. I was misled by those fake positive reviews on Internet.
What happened later? I didn’t sign the reservation with the seller (another buyer did). I will write another post with more details. Anyway, my closing service can not continue. I asked Nathan Brown (Czech Point 101’s director) for refund, he said they have spend “considerable” time on my case, and the purchase process has finished about 30%, so they can only refund me half of what I paid, which is 30,250 CZK. I don’t agree, because I don’t even see the final reservation contract yet, not even in Czech language, where did they spend their “considerable” time, and how comes the process has finished ~30%? I requested them to refund me 50,000CZK, and they just stop answering my email.