Sale of Apartments Easier Again?
The Czech housing market suffers from the re-established pre-emptive right of co-owners. This relates not only to residential premises but also garages, parking spaces, cellars and driveways which are functionally connected with apartments.
This made sales of apartments much more complicated as sellers are obliged to offer their co-ownership of functionally connected non-residential units to the remaining co-owners or ask them to waive their pre-emption right. This obligation causes administrative complications, higher costs of sales and prolongation of selling processes, as the seller must often approach dozens or even hundreds of co-owners. Moreover, the offer may not be made until the conclusion of the purchase agreement. It is estimated that up to 40% of all transactions failed because of this. In a typical case, a co-owner exercises his pre-emptive right to a parking space. The purchaser then terminates the purchase agreement as he does not intend to buy the apartment without a parking space.
A government bill amending the Civil Code in this respect is being discussed in the Chamber of Deputies. The pre-emptive right should no longer apply to garages, parking spaces, cellars or other real estate properties such as driveways. This should simplify sale of apartments again.
The Ministry for Regional Development expects the bill to be passed without difficulties. On the other hand, the Parliament might of course initiate changes to the government bill and, thus, the final wording might be different from the one proposed. We will keep you posted.
Mgr. Ing. Jan Valíček