The right of pre-emption is an important issue for both buyers and sellers. Let's explain it in more detail.

Summary:

Right of first refusal means that a person has a preferential option to buy a property over other interested parties. Since 2020, this arrangement has been significantly simplified - today it is most often used in the context of inheritance proceedings. For co-owners, it applies by law only in specific cases.

What does pre-emption mean and how does it affect your property?

The right of pre-emption is a legal institution that is closely linked to the co-ownership of real estate. In practice, this means that if a co-owner plans to sell his share, he must first offer it to the other co-owners before transferring it to another buyer. These co-owners therefore have the right of first refusal.

This principle has undergone several important legislative changes in recent years which may affect the sale of your property. If you are planning to sell your property, it is a good idea to familiarise yourself thoroughly with the rules of pre-emption to avoid any complications.

What is pre-emption?

Pre-emption is a specific right of a person or group of persons to acquire a property before the owner offers it to other buyers. If the owner decides to sell the property, he must first offer it to those who have the right of first refusal. This mechanism ensures that those entitled have the opportunity to exercise their right of first refusal to acquire it before entering into a sale to the wider public.

How has pre-emption changed since 2020?

From 1 July 2020 a major modification has been made of the Civil Code Act No. 89/2012 Coll.which has significantly affected the operation of the pre-emption right. The changes have mostly affected co-owners of real estate and pre-emption rights under inheritance proceedings.

Previously, co-owners had the option of pre-emption in a wider range of situations, but the amendment brought more specific rules and certain restrictions. Thanks to this, for example. the general obligation to offer your share to the other co-owners has been abolished, which in practice simplified the transfer of real estate between non-co-owners.

When and how can the pre-emption right be used?

Right of pre-emption in inheritance

The heirs have the right of first refusal to purchase the share before third parties.
Valid six-month period from the acquisition of the inheritance.
Exception: If the heir transfers the share to another co-owner or direct relative (e.g. a child), the pre-emption right does not apply.
After 6 months, the heir can sell the share to anyone.

Pre-emption right between co-owners

It applies to cases where co-ownership has arisen without the direct will of the owners (e.g. by inheritance, will).
The time limit applies 6 monthsduring which the share must first be offered to the other co-owners.

Pre-emptive right of tenants

If the house was not originally divided into residential units but the division subsequently occurs, the tenants have a right of first refusal to buy the apartment they are occupying.
Deadline for application: 6 months from the creation of the separate unit.

Contractual pre-emption right

May be negotiated contractually between two parties (e.g. between the seller and the prospective buyer).
The parties determine the terms of the pre-emption right in the contract.

Summary:
The right of pre-emption protects certain groups of persons and gives them the opportunity to acquire the property before other interested parties. In most cases, its validity limited to 6 months, so it is important to keep an eye on time limits and conditions.