Little Amendment to Civil Code – Significant Changes (3/4)

Novinky

On 26 November, the Chamber of Deputies of the Parliament of the Czech republic passed an amendment bill to the Civil Code (so-called Little Amendment) and it has been forwarded to the Senate, which is yet to decide upon the further steps. The following series introduces the overview of the most significant proposed changes to the status quo.

  1. Security Deposit in Flat Lease Contract

The last change, rather significant for both flat lessors and lessees, brought by the Little Amendment and which we feel ought to be included into our legal “mini-series”, is the regulation of the security deposit in connection with renting a flat – the maximum amount is to be set to mere three times as much of a monthly rent (as opposed to the current six times).

As the explanatory memorandum states, the obligation to pay such a high amount hinders lessees from obtaining standard level of accommodation. It should be noted that the legislator favours the needs of the lessees to those of the lessors, who may be damnified by wrongdoings of the lessees in the facilities, and their claims may be rather difficult to uphold.