Prague apartment buildings: inheritance and family decisions

Who decides whether to sell

Selling the entire jointly owned building requires the consent of all co-owners. Each co-owner can sell their share independently, but when an inherited share is transferred, the other co-owners have a right of first refusal for six months from the date it was acquired.

Selling a share is usually significantly less favourable than selling the whole building: shares attract specialist investors who demand a substantial discount to reflect the uncertainty of sharing ownership with others. It is therefore worth working towards a joint sale.

The three most common family situations

• One wants to sell, another wants to hold: the solution is often a buyout at an independently determined price, or a sale with clear rules on how the proceeds will be divided.
• Everyone wants to sell, but at different prices: it helps to agree a minimum price and decision-making rules before offers arrive.
• One co-owner manages the building while the others lack information: the first step is to give everyone access to the same figures.

How to prepare for a joint decision

• A shared valuation by an independent party, made available to everyone at the same time.
• A written agreement between co-owners covering who represents the family, the minimum price, how offers are assessed and agreed, and how costs are shared.
• A single point of contact for investors. Otherwise, the family appears divided, and investors will use that to their advantage.
• Transparent reporting, with the same information provided to all co-owners at the same time.

When the family cannot agree

Any co-owner can apply to the court to terminate the co-ownership. The court may divide the property, award it to one co-owner subject to compensation, or order a sale by public auction. An auction is usually the least favourable outcome for everyone: it takes a long time and the result is uncertain.

It is therefore worth resolving the dispute earlier through mediation, an independent valuation or an offer to buy out a share at a fair price.

Inheritance proceedings and the sale

The property can only be sold once inheritance proceedings have concluded and the heirs are registered in the Land Registry. Preparations can begin earlier, however: gathering documents, obtaining a valuation and agreeing the approach. This allows some families to make use of time they would otherwise spend waiting.

Frequently asked questions

Sources

• Zákon č. 89/2012 Sb., občanský zákoník (Act No. 89/2012 Coll., Civil Code): Section 1124 (right of first refusal), Section 1140 et seq. (termination of co-ownership)
• Zákon č. 292/2013 Sb., o zvláštních řízeních soudních (Act No. 292/2013 Coll., on Special Judicial Proceedings)