Are you going to transfer an apartment? Its correct definition in the contract is key and mistakes are expensive: incorrect definition of the unit leads to the rejection of the cadastral deposit proposal and the "forfeiture" of the administrative fee of CZK 2,000 (in 2024). The administrative fee is tied to a specific procedure. At the same time, the entire transfer process will become slower and more complicated. So how to correctly define the apartment in the contract?
The key is whether the apartment is defined according to the Act on Ownership of Apartments or according to the Civil Code. How do you find out?
You can find this information from the LV (ownership certificate) on which the relevant unit is registered, or also by viewing the publicly accessible application "Online Land Registry".
Figure 1 Unit defined according to the Act on Ownership of Apartments
Figure 2 Unit defined according to the Civil Code
- Unit defined under the Act on Ownership of Apartments
Units are now defined according to the Civil Code. However, there are still a lot of units defined "in the old way" according to the law on apartment ownership.
Sample wording for the transfer of a unit according to the Act on Ownership of Apartments:
“unit No. [… (p. no./unit no. )], defined according to the Act on Ownership of Apartments, method of use [apartment / other non-residential space], located in [… upper floor] in building No. [ …] built on the plot of land No. […], registered at LV No. […] for the cadastral unit […], municipality […];
while with this unit a co-ownership share is connected of the size of id. […] on common parts of building No. […], apartment building, standing on the plot of land No. […] in the Czech Republic [ …], municipality […];
a share in the amount of id. […] on the plot of land No. […], built-up area and courtyard, registered on LV No. […] for c.u. [… ], municipality […]"
The definition of a unit according to the Act on Ownership of Apartments must include:
- designation of the plot of land on which the building is built, descriptive building number, cadastral territory, municipality and possibly part of the village;
- type of unit (residential / non-residential);
- we recommend also indicating the location of the unit in the building (floor),
- the size of the co-ownership share in the common parts of the building,
- usually the land under the building is also transferred - this land must be specified and the size of the share in this land must be indicated.
The Act on Ownership of Apartments (ZVB) contains the construction of three property objects, namely:
1. "Unit",
2. "co-ownership share in the common parts of the house" and
3. "co-ownership share in the plot of land".
The Unit and the co-ownership share in the common parts of the house are inextricably linked: the co-ownership share in the common parts of the house passes to the buyer of the unit automatically according to the ZVB.
The co-ownership share in the land is characterized by being relatively independent: it is a plot of land developed with a house with units, or included in the owner's declaration as a related plot. It must be expressly transferred with the ownership of the unit - this means that if you forget it in the contract, the cadastre will not transfer it to the acquirer. On the contrary, the unit and the co-ownership share in the common parts of the house are in an accessory relationship, when legal actions can only be carried out jointly against both of them.
Useful tip: If you are buying an apartment defined according to the ZVB, check the document called the Owner's Declaration. From it, you can find out whether the transferred unit belongs to, for example, a basement cubicle, which will belong only to you. The ZVB distinguishes between "absolutely common" and "relatively common" common parts of the house: absolutely common parts can be used by all owners, while relatively common parts are connected in property law only to a certain unit. Relatively common parts, however, cannot be determined from the entry in the land registry - you can get the information from the Owner's Declaration.
- Unit defined according to the Civil Code
The formulation of the unit defined according to the Civil Code (OZ) is simpler.
Sample wording for the transfer of a unit according to the Civil Code:
- “unit no […], method apartment use, defined in the plot of land No. […], which includes the building with no. […], part of the unit is a co-ownership share in the size of id. […/…] on the common parts of the land parc. No. […], registered at LV No. […] for cadastral unit […], municipality […], part of the municipality […]"
From the point of view of the terms of the cadastral law, the shorter wording below would suffice:
- “unit no. […], defined in the plot of land No. […], for cadastral unit […]”
However, the first, longer formulation can be recommended.
In contrast to the definition according to the ZVB, the Civil Code simplifies the situation and recognizes only a single object into which all the previous 3 separate objects are merged. This is a consequence of the superficial principle that the house and the units in it are fundamentally part of the land (or building right).
The definition of the unit according to the Civil Code must include:
- unit number,
- designation of the immovable property in which the unit is defined: usually land, possibly a building (if the building is not part of the land or building rights), or building rights. For the land, at least the plot of land number and cadastral unit must be indicated (if it were a building plot, this information must also be indicated, otherwise it is considered to be a plot land). For the building, the descriptive number, lot number and registration number. For the building right, lot number of the land for which it is established and cadastral unit
If it is an under-construction unit, this does not prevent its transfer, however, the information about under-construction must also be stated in the contract.
When transfering or acquiring a flat, we recommend you to seek assistance of a qualified Attorney. This way you will avoid the risk of unnecessary costs, time delay, and mortgage conditions. We are ready to help.
