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A tenant's pre-emptive right to buy a condominium unit under Section 1187 of the Civil Code

30.08.2019

Under a Czech Supreme Court judgment (file no. 33 Cdo 1850/2017) handed down on 30 May 2019, tenants whose leases have terminated may not exercise their statutory pre-emptive right to buy a unit in a condominium on its initial sale under Section 1187 (1) of the Czech Civil Code. This is the case even if the statutory six-month period for accepting the offer has not lapsed.

Under the Czech Civil Code, when a condominium is created by dividing a building into units, the tenants of those units have a pre-emptive right to buy their unit on its initial sale. This also applies to the lessees of non-residential premises that are connected to a unit in the building. The pre-emptive right expires if the tenant fails to accept the offer in the statutory six-month period. It does not apply to tenants that are legal entities.