Czech Republic: Real Estate Law After Re-Codification In 2014

Last Updated: 28 January 2014
Article by Martin Kubánek and Miroslav Dudek

The new Civil Code as part of the re-codification of Czech private law became effective as of 1 January 2014.

Czech Real Estate Law after Re-codification in 2014

As part of the re-codification of Czech private law Act No. 89/2012 Coll., Civil Code (the New Civil Code) became effective as of 1 January 2014. In this article we would like to point out some important changes introduced by this new regulation.

The Principle of Superficies solo cedit

The New Civil Code returns to the principle of Superficies solo cedit, under which structures firmly connected to a plot shall be considered as part of that plot. As of 1 January 2014, all structures placed on a plot owned by the same person are a part of this plot. Anyone who intends to dispose of a plot should therefore keep in mind that the structures placed on it will now follow the fate of that plot. In cases where the owner of the structure and the plot are not the same, the New Civil Code establishes a statutory pre-emption right of the owner of the plot to the structure and vice versa, so that the ownership of the plot and structures can be unified in the future.

The right of construction

Anyone who intends to build a new structure whose service life does not exceed several decades and who does not want to purchase the plot, or anyone who cannot agree with the owner of the plot to purchase it, might find the new institute of right of construction useful. The right of construction can be established based on an agreement and by means of registration in the Land Registry. The main feature of the right of construction is its temporary nature. It can be established for up to 99 years, but can be extended later. As a result of termination of the right of construction, the structure becomes a part of the plot on which it has been built. In order to compensate the builder, the owner of the plot shall pay half of the price of the structure, if not agreed otherwise between the parties. The right of construction is transferable and may also be encumbered in favour of third parties.

New regulations in mortgages over real estate

The New Civil Code newly allows for the establishment of a priority right for establishing a mortgage and registering this right in the Land Registry. This means that parties may register the mortgage rank in the Land Registry before they actually file the application for the registration of the mortgage itself. This enables creditors (eg, banks) to secure a better mortgage rank before the negotiations on the contractual documentation wrap up.

If a receivable secured by a mortgage is fully paid up, but the mortgage is still registered in the Land Registry, as the mortgagor the owner is entitled under the New Civil Code to use the vacant mortgage to secure another receivable not exceeding the amount of the original receivable. This new institute can be used for refinancing, for example, whereas it enables the new creditor to virtually outrun other secured creditors. However, it can be agreed with other secured creditors that the owner is not entitled to secure new receivables with the vacant mortgage, whereas this limitation is to be registered in the Land Registry.

Land Registry and acquisition of ownership to real estate from a non-owner

Under the previous legal regulations, any person relying on information in the Land Registry was in good faith unless the person knew that the records were not in accordance with reality. In case of a discrepancy between the entry in the Land Register and reality, reality prevailed according to the previous legal regulations. A person acquiring real estate who was acting in good faith in the entry in the Land Registry could not acquire the real property from the non-owner. The acquiring person could only become the holder of the real property in good faith and could acquire the ownership of the real property by usucaption, provided that the other legal conditions for usucaption are fulfilled. This has changed as of 1 January 2014.

The New Civil Code enables the acquisition of ownership to real estate from a non-owner if certain statutory conditions have been met, especially the good faith of the transferee in the records in the Land Registry (the transferor must be registered as the owner) and a consideration for the ownership transfer is to be regulated in the transfer agreement (purchase agreement). However, the real owner of the real estate may under certain circumstances dispute the ownership of the new registered owner by filing a notice of dispute at the competent Land Registry Office within the statutory period.

Quote: The New Civil Code should motivate the owners of the real estate to regularly check the status of entries in the Land Registry. 

This article was originally published in the schoenherr roadmap`14 - if you would like to receive a complimentary copy of this publication, please visit:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions