The right of first refusal thus created an administrative burden, complicated the transfer of a share in real property, and, in a way, also affected the purchase price, because it prolonged the entire process of selling the property and, in many cases, created considerable uncertainty. Often, it was unclear whether the address for notifying a co-owner was current; other delivery problems also arose; and sometimes co-owners outright obstructed one another.
The most common problem involved the transfer of “ancillary” properties in an apartment building —such as garage spaces, basement storage units, or front yards. In large apartment buildings, the seller thus had to make an offer to several dozen, or even hundreds, of co-owners of non-residential units. This put not only the seller in an unpleasant situation, but also the eager buyer, who, after completing all the necessary formalities, spent three months in uncertainty as to whether the transaction would go as expected.
As a result, transfers were often carried out using two separatepurchase agreements, separating the residential unit from the share in the non-residential unit. Ownership of the apartment was thus transferred to the buyer immediately, and the buyer then had to wait to see how the situation regarding the share would unfold.
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Right of First Refusal and a Host of Other Formalities
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An Interesting Case from the Courtroom
In 2018, the Constitutional Court ruled on a case involving the right of first refusal for a garage parking space. The court essentially held that exercising the right of first refusal in the context of a large garage constitutes vexatious conduct and does not enjoy legal protection. In such cases, it is therefore possible to simply sell the share with little risk that someone would challenge the new owner. This was also addressed in a 2020 amendment to the Civil Code, which completely restricted this right.
Right of First Refusal Since 2020
The right of first refusal for co-owners of real estate was abolished effective July 1, 2020. Therefore, if you find a buyer for your one-fourth share of the property, you can file an application for registration with the relevant land registry office immediately after concluding the purchase agreement. This allows you to avoid three months of uncertainty about whether any of the co-owners will exercise their right of first refusal.
This amendment has once again expedited the transfer of real estate, particularly residential units and the associated shares in other spaces. Even so, the right of first refusal is not without exceptions.
If you’re still unsure how to handle the transfer of an apartment conveniently and without legal complications, you’ll find our article on apartment transfers helpful—we’ve covered all the essentials there.
An exception where you’ll still need to keep the right of first refusal in mind
The right of first refusal is therefore not waived in cases where the co-owners had no influence over their rights and obligations from the outset. Let’s explain this using a specific example. For example, if you acquired a co-ownership share through probate proceedings and wish to transfer it to a third party, you must first offer the share to the co-owners. However, this rule does not apply if you wish to transfer the share to your spouse, a sibling, or another close relative. After 6 months, however, the right of first refusal expires, and you may dispose of the share as you see fit.
A second exception is the separate provision regarding the statutory right of first refusal in favor of the landowner with respect to a structure built on their land, as well as the right of first refusal of the owner of a structure built on another person’s land with respect to that land. In 2014, the Civil Code reinstated the Roman principle of *superficies solo cedit* (the superstructure yields to the land, meaning that a structure is part of the land). This means that, going forward, the land and the house should constitute a single immovable property. By exercising the right of first refusal, it will thus be possible to achieve a single owner. Today, it is still common for the land to belong to someone other than the owner of the house on it. This right of first refusal is therefore intended to facilitate the gradual consolidation of property.
How do you cancel a right of first refusal on real estate?
How to cancel a right of first refusal on real estate depends primarily on whether it is a statutory or contractual right of first refusal and whether the right is registered in the real estate registry. A contractual right of first refusal may expire, for example, in the manner specified in the contract, upon the expiration of an agreed-upon period, or by mutual agreement of the parties. In the case of a statutory right of first refusal, the decisive factor iswhether the event specified by law as causing its termination has occurred.
If the right of first refusal was established as a right in rem and is still listed in the real estate cadastre, it must also be deleted from the cadastre after its termination. A document proving the termination of the right and a request for its deletion must be submitted to the cadastre. The Czech Office for Surveying, Mapping, and Cadastre also publishes a form titled “Confirmation of the Extinction of a Right” for such cases.
From our experience: Clients sometimes only discover the existence of an older right of first refusal when preparing to sell a property, because it is still listed on the title deed. However, the mere fact that the right has not been exercised for a long time is not sufficient for its automatic removal from the Land Registry. Therefore, it is first necessary to determine on the basis of which document the right arose and whether a reason for its termination has already occurred.
Advantages and Disadvantages Associated with the Extinction of the Right of First Refusal
As we mentioned above, the amendment has significantly simplified the transfer of real property, particularly residential units, which are often subject to co-ownership of non-residential spaces or land. On the other hand, the right of first refusal was intended to prevent the fragmentation of ownership rights to real estate, as a smaller number of co-owners facilitates agreement on the management of the property. It also provided peace of mind in cases where siblings or family members inherited a house. If, for example, one of them ran into financial difficulties or wanted to dispose of their share for any reason, they could not sell it to a third party without the others’ consent—and practically without their knowledge.
In practice, we have encountered several instances where a co-owner intentionally sold their share (for example, to a developer) with the intent of complicating the situation for all the other co-owners. Even with a limited right of first refusal, there are solutions to these cases that can save you a lot of future complications. In such cases, we recommend establishing a contractual right of first refusal and having it recorded in the land registry.
If you decide to do this, be sure to clearly define the manner in which and the length of time for which the co-owners are required to offer their shares to one another.
We’ve discussed a slightly different situation that may arise in more detail in one of our previous articles on the transfer of a cooperative share.
Summary
The right of first refusal among co-owners of real estate was abolished as of July 1, 2020, thereby significantly simplifying the transfer of real property, particularly co-ownership shares. Previously, the seller had to first offer the share to the other co-owners, which led to delays, administrative complications, and legal uncertainty. The new legislation has eliminated these obligations, with certain exceptions—for example, in the case of a share acquired by inheritance, where the right of first refusal lasts for 6 months, or in the relationship between the owner of a plot of land and a structure built on someone else’s land. The abolition of the right of first refusal has accelerated real estate transactions, but at the same time it has eliminated a tool that protected co-owners from the undesirable fragmentation of the ownership structure. In specific cases, it is still possible to establish a contractual right of first refusal and register it in the real estate cadastre.
Frequently Asked Questions
Does the right of first refusal always have to be recorded in the real estate registry?
No. A contractual right of first refusal can exist only between the contracting parties. It is entered in the land registry only if it is established as a right in rem.
Does an expired right of first refusal automatically disappear from the land registry?
Not always. If the real right of first refusal is still registered in the land registry, it is generally necessary to provide proof of its termination and request its removal.
How much does it cost to remove a right of first refusal from the land registry?
If the process is carried out through the registration procedure, the standard administrative fee for a registration application is 2,000 CZK in 2026.
Can a property owner revoke a contractual right of first refusal on their own?
It depends on how it arose and the terms of the contract. If the right still exists, the mere will of the owner of the encumbered property is generally not sufficient.
What if a very old right of first refusal is recorded in the land registry?
First, it is necessary to identify the document on the basis of which the right was registered, as well as the legal grounds for its possible termination. The mere fact that the registration is old does not automatically mean that it can be deleted without further action.
Is the right of first refusal an obstacle to the sale of real estate?
It does not necessarily prevent the sale, but depending on the type of right of first refusal, it may require the seller to offer the property first to the party with the right of first refusal.
