WORKSHOP LIVING IN THE CZECH REPUBLIC www.expatlegal.cz

WHAT IS EXPATLEGAL? EXPATLEGAL is an information hub run by 3 attorneys created to help expats living and working in the Czech Republic to better understand Czech law. EXPATLEGAL team can advise you on different legal issues, such as residence and work permits, housing, family life or starting a business. Attorney‘s knowledge of Czech law together with immigration law and private international law. www.expatlegal.cz

LIVING IN THE CZECH REPUBLIC Civil Code (act no. 89/2012 Coll.) Act on Services (act no. 67/2013 Coll.) Government Regulation on maintenance and repairs of the apartment (no. 308/2015 Coll.) Criminal Code (act no. 40/2009 Coll.) www.expatlegal.cz

HOW TO ARRANGE LIVING AFTER MOVING TO THE CZECH REPUBLIC Am I looking for short-term or long-term solution? What options I have? Sublease X Sharing apartment X Rent X Purchase How much can I pay? How about additional expenses? Do the real estate agents speak English and do they provide documents in English? Can I verify who is the real owner? www.expatlegal.cz

RENTAL AGREEMENT - OVERVIEW the tenant is the protected party, we can see the protection in the art. 2235 of the Civil Code “….any provisions prejudicing the tenant’s rights under this Subdivision are disregarded...” and art. 2239 …stipulation imposing on the tenant a duty to pay the lessor a penalty or a duty which, given the circumstances, is evidently excessive is disregarded… indefinite or definite period (mostly definite at least for the first few years) Note: According to the new Czech Civil Code, there is an automatic prolongation of the rental agreement. If the tenant continues to use the apartment for at least three months after the date on which the lease of the apartment was to end and the lessor fails to request the tenant to leave the apartment, the lease is conclusively presumed to have been stipulated again for the same period as before, but for no more than two years; this does not apply if otherwise stipulated by the parties (art. 2285 of the Act no. 89/2012 Coll., Czech Civil Code). www.expatlegal.cz

RENTAL AGREEMENT - OVERVIEW Rights and Obligations of the Parties The tenant shall use the apartment properly and in accordance with the lease contract, working or doing business in the apartment is permitted. A lessor shall maintain the apartment and building in a condition fit for use. The tenant shall only carry out and pay for routine maintenance and minor repairs related to the use of the apartment. The tenant is obliged to pay the rent and services on time according to the agreement. (not stated literally in the Civil Code) Note: A tenant has the right to keep an animal in the apartment unless, given the circumstances in the building, it constitutes excessive inconvenience for the lessor or other residents of the building. If the keeping of an animal results in increased costs of maintenance of the common areas of the building, the tenant shall compensate the lessor for these costs. www.expatlegal.cz

WHERE TO CHECK WHO IS THE OWNER? Privately owned flat (OV) Cadastral registry: www.cuzk.cz www.expatlegal.cz

If you know flat no. If you don’t know flat no.

Street and building no.

Czech addresses usually consist of two building no Czech addresses usually consist of two building no. – longer and shorter It is sufficient to put any of the two (longer – left box, shorter – short box)

The owner

WHERE TO CHECK WHO IS THE OWNER? Collective ownership (DV) Commercial register, www.justice.cz www.expatlegal.cz

WHAT SHOULD MY AGREEMENT CONTAIN Identification of parties Identification of the flat/house (if possible by information from the cadastral registry) Rent and method of payment (double check - provision on yearly increase of the rent) Deposit fee for services connected with the rent (water, electricity, TV, internet, waste management, cleaning of the house…), with their specification Number of people living with the tenant Rights and obligation of parties www.expatlegal.cz

WHAT OTHER PRIVISIONS ARE ALLOWED Security deposit – maximum 6x rent Prohibition of sublease (not in case of partial sublease, e.g. of a room, when the tenant lives in the flat) (Yearly) increase of the rent www.expatlegal.cz

PROHIBITED PROVISIONS “….any provisions prejudicing the tenant’s rights under this Subdivision are disregarded...” Prohibited to impose a contractual penalty to a tenant (even if agreed by the tenant), exception in the Act on Services. No other payments than rent and service fee, no payment in the form of a contribution or otherwise, or payment of the rent by a check with a later date or in another similar manner. Other reasons for termination from the lessor’s side than stated in the Civil Code. The lessor cannot prohibit smoking, pets… The lessor cannot prohibit registering of residence address. The lessor cannot prohibit visits, especially of family members. The lessor cannot prohibit long-term, permanent stay of close family members/partners. Note: these restrictions do not apply where the lessor leases an apartment or building to the tenant for recreation or another apparently short-term purpose. www.expatlegal.cz

PAYMENT OF SERVICES Paid by the lessor or by the tenant? Fees for services usually paid by monthly deposit - when should you have their calculation? If not agreed otherwise, by the end of the 4th month after termination of the calculation period (usually April) Balance – if not agreed otherwise, within 3 months from the calculation Contractual penalty according to the Act on Services – 50 CZK/day of delay www.expatlegal.cz

TERMINATION Agreement End of definite period Termination notice from tenant: a) contract for indefinite period of time - any reason, 3 months termination period, some reasons immediate termination, in writing, delivered to the other party b) contracts for definite period - only if the circumstances which the parties apparently relied on when the obligation arising from the lease contract was created have changed to the extent that the lessee cannot be reasonably required to continue the lease. Termination notice from lessor, only reasons specified in the Civil Code, 3 months termination period, some cases immediate termination, in writing, delivered to the other party

Thank you for your attention! flidrova@expatlegal.cz karetova@expatlegal.cz becirovic@expatlegal.cz or simply info@expatlegal.cz www.expatlegal.cz