In a judgment (file No. 30 Cdo 789/2016) handed down on September 26, 2016, the Czech Supreme Court addressed the question of when a co-owner’s first refusal right expires under Act. 40/1964 Sb. This statutory pre-emptive right lapses one year after the date when the Civil Code took effect under Sec. 3062 of Act No. 89/2012 Coll. The Supreme Court judgment also holds that this right expires at the end of this one-year period.

Nevertheless, if during this period, an owner brings a claim arising from the breach of its first refusal right, the relevant court must decide on the case under Act 40/1964 Sb, as amended. This does not apply, however, if the “owner seeks a declaration of an original co-owner’s co-ownership rights after January 1, 2015 since the lapse of the co-owner’s statutory pre-emptive rights on January 1, 2015 means that this person no longer has an urgent legal interest in an action filed under Sec 80 of the Civil Procedure Code.”

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