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.
4. The Right of Pre-emption of Co-owners
The new Civil Code did not adopt the scheme of unlimited legal right of pre-emption and introduced rather a great deal of independence in the matters of its enforcement. The status quo stipulates that the co-owners may only exercise the right within a six-month after the co-ownership in question commencement on condition that it has been established for the reason of a possible death or if the co-owners were not capable of securing their rights and responsibilities. Also, the co-owners have the right of pre-emption if one of the co-owners transfers their share free of charge.
The amendment, thus, reflects the original wording of the Civil Code; nevertheless, it is important to bear in the mind that the right of pre-emption only regards the shares in immovable assets as the exact proposed wording is as follows: “should a co-owner’s share in an immovable asset be transferred, the co-owners may exercise the right of pre-emption except for the cases of a transfer to a related person.” The six-month period is also excluded from the amendment.
Besides the above, the possibility for a co-owner to renounce the right of pre-emption, valid also for the legal successors, has been introduced.