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Although the latest changes in the co-owners' pre-emption rights have been in place since the beginning of 2018, many clients are still groping in the amendment. That is why we’ve decided to write the basic and most important points so that this topic is not a big unknown for you.

What are the changes in the co-owners pre-emption right?

What is it about?

Pre-emption right means that if we want to sell the property, we must first offer it to someone who is entitled to it. Only the seller has this obligation and the authorized person does not have to use its advantages. It is also important when the pre-emptive right arises - both by law and by contract.

Let's take an example. Mr and Mrs Radek and Lenka owned a cottage for recreation and had a joint property of spouses. Unfortunately they divorced and Lenka decided to sell her part. But first, the sale had to be offered to her former man, who was a co-owner. Because Radek liked to go fishing, he bought his part with pleasure. The pre-emptive right prevented Radek from having to enjoy his cottage together with strangers.
 

SO WHAT ARE THE CHANGES?

The situation we described in the previous paragraph is logical and corresponds to common sense. However, until January 1. 1. 2018 it was true that the co-owner could handle his share as he pleased. Mrs Lenka could have sold her share of her cottage to anyone and Mr Radek would have to deal with it. An exception would be the transfer to a close person, when Mrs Lenka doesn't have to ask. A definition of close person could be, for example, the children of them both.

The amendment to the Civil Code introduces, from 1. 1. 2018, introduces pre-emptive right to co-ownership of immovable property. Until then, the co-owner could handle his share as he liked.

DID THE AMENDMENT COME WITH COMPLICATIONS?

If the co-owner wants to sell his share, he must find a buyer for his share, conclude a purchase contract with him and only then ask the co-owners whether they are interested in the purchase. Indeed, the law states that "the obligation to offer a thing to a pre-buyer to buy is achieved by concluding a contract with a motivated buyer".
The co-owner is able to think about the whole purchase for three months, and possibly pay the purchase price from his pre-emption right. In this case, however, the original contract with the candidate is canceled. Therefore, it’s of course easier for the seller to ask his co-owner whether he is interested in the purchase and if he refuses – seller can rely on his word. 


IMPORTANT POINTS IN THE AMENDMENT

The amendment introduced the reintroduction of the right of pre-emption. Applies only to real estate.

When someone converts a co-ownership share to real estate, other co-owners have a pre-emption right. Except for the transfer to a close person.
It doesn’t matter whether it’s for a fee or for free. In the latter case, the co-owner must pay the usual price.

WHAT ELSE CAN POSSIBLY HAPPEN?

Co-owners are able to disagree on the operation of the pre-emption right. In such a case, each of them has the right to redeem the co-ownership share according to his or her part. Even a co-owner can give up his share. In which case is necessary to enroll it into the cadastre.

ADVANTAGEOUS OR DISADVANTAGEOUS?

The re-introduction of the pre-emption right is in practice the most advantageous for co-owners of houses. For example, your sibling will sell a house from parents without your knowledge. However, the pre-emptive right may cause slight confusion if a cellar or a garage state is attached to the flat, but it’s not tied to the flat by the contract. In this case, the apartment is sold the way a parking space or garage is determined by the share of the common areas of the house.
And how is it with the land? The share of land shares brings considerable complications. Here, as well, you must first agree with the your co-owners how you choose the procedure or whether to surrender your pre-emption right. And everywhere, the ratios and proportions of individual owners must be taken into account. 

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