Czech Civil Code revises Real Estate Law
The new Czech Civil Code will substantially amend the Czech real estate law:
Acquisition of property rights from a non-owner
Under the current law, one cannot rely on registrations in the Land Register. Hence, even if one buys a property in good faith and based on the information in the Land Register, the buyer will not acquire an ownership title if the pretended seller is in fact not the owner. In such cases, only adverse possession in good faith is possible, whereas the possession period is ten years.
The new Civil Code intends to protect good faith buyers: Registrations with the Land Register shall become reliable, hence anybody can trust that what has been registered is correct. The proposed regulation is intended as a general regulation and shall not be limited to immovable property but shall be applicable to all kind of public records such as eg patent register, trademark register etc, unless otherwise provided for.
Superficies solo cedit
Under the current law, constructions are not part of the land. Hence, buildings and plots where they are built on are often owned by different owners.
The new Civil Code will introduce the notion of "superficies solo cedit": ownership on the building will follow the property on the land as the building is to be considered as dependent part of the land.
As for cases where there are different owners for the land and the building erected on this land as of entry into force of the new Civil Code, a pre-emption right for the building will be established in favour of the owner of the land. However, if the land can be functionally divided, a pre-emption right for the land or the relevant part of the land will be established in favour of the owner of the building.
In case the pre-emption right is not used, it will remain and it will continue to burden the properties (it will therefore act against the transferee of the transferred land or building). If, however, an option of a pre-emption right is used, the ownership in land and building will merge and the pre-emption right expires.
Possibility of registration of lease rights
The new Civil Code also introduces the possibility to register property leases in the Czech Real Estate Register.