REALWorld Law

Sale and purchase

Mandatory pre-emption rights

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?

Czech Republic

Czech Republic

Yes, but these pre-emption rights apply only in exceptional circumstances. They apply to culturally significant real estate, certain agricultural land and real estate located in environmentally protected areas.

With effect as of 1 July 2020, statutory pre-emption right of the real estate co-owners applies only if: (i) the co-ownership upon a property was established by inheritance or other similar succession so that the will of acquiring co-owners could not reflect upon their position and (ii) the relevant share is being transferred within the period of six months from the date on which the co-ownership was established. Unless the transferor and the transferee are classified as close persons (eg family members – spouses, siblings and direct ancestors) or unless the remaining co-owners of real estate property have pre-emption right in case of sale or donation of the respective share in the property.

Further, there is a specific pre-emption right applicable to structures (typically building) and the land underneath such structures in case the respective owners are different. The owner of the underlying land on which a structure was constructed which did not constitute integral part of the land in the past and have not become integral part of the land since the effective date of the new Civil Code, has a pre-emption right to the structure, and vice versa the owner of the structure has a pre-emption right to the underlying land.