What Happens to Tenants When a Flat Is Sold in a Split House
Published 13 October 2026
Neither dividing a building into units nor selling a flat ends a tenancy. Under the Czech Civil Code (Act No. 89/2012 Coll.), the buyer takes over the landlord's rights and obligations, and the tenant stays protected exactly as before. As an owner, you therefore need to factor the tenancy into your sale preparations, because it affects both the timing of the sale and the price of the unit.
Summary
- A tenancy does not end when ownership is transferred; the new owner of the unit steps into the landlord's place (§ 2221 of the Civil Code, Act No. 89/2012 Coll.).
- The sale of a unit is not in itself a ground for notice; a landlord may terminate a lease only on grounds set out by law (§ 2288 et seq.).
- There are three basic scenarios: the tenant stays, the tenant buys, or the tenant leaves by agreement.
- An occupied unit is usually sold differently from a vacant one; each lease needs to be reviewed in a legal audit.
Dividing the building and tenancy agreements: what changes and what does not
An apartment building is divided into units by a declaration by the owner (prohlášení vlastníka) under the provisions of the Civil Code (Act No. 89/2012 Coll.) on the ownership of flats. This creates separate units that can be transferred. However, you remain the landlord until you transfer ownership of the particular unit. The declaration itself generally has no direct effect on existing tenancies.
It is important to distinguish two things: the tenancy agreement is a contractual relationship between landlord and tenant, whereas ownership of the unit passes only upon registration in the katastr nemovitostí (Czech Land Registry). Under the Land Registry Act (Act No. 256/2013 Coll.), the Land Registry Office may not decide earlier than 20 days after notifying the owner, and the average time for registration is roughly 22 days. Until then, you are the landlord.
Transfer of rights and obligations to the new owner
Where a landlord transfers ownership of the let property to someone else, under § 2221 of the Civil Code the acquirer steps into the rights and obligations under the lease in place of the previous landlord. The lease therefore does not change: it continues to the same extent, at the same rent and for the same term.
In practice, this means several obligations for you as the seller:
- Inform the buyer of all tenancies relating to the unit, including oral arrangements and addenda. Concealing a tenancy creates a risk of a dispute with the buyer.
- Notify the tenant of the change of landlord, so that they know whom to pay rent to and whom to contact.
- Settle the deposit (jistota) and any arrears or service charge reconciliations, or expressly transfer them to the buyer in the purchase agreement.
The scope of these obligations and how to fulfil them should be checked against the specific lease, as they may vary depending on its wording.
Tenant protection and grounds for notice
Residential tenancies are strongly protected under the Civil Code (Act No. 89/2012 Coll.). A landlord may terminate an open-ended tenancy only on the grounds set out by law in § 2288 and the following provisions. Notice must be in writing, must state the reason and must inform the tenant of the option to apply to the court. Neither the sale of the unit nor the buyer's wish to have the flat vacant is among the grounds for notice.
What this means for you:
- A buyer of the unit cannot “clear out” the tenant simply because they have bought the flat. They enter the tenancy with all its restrictions.
- If the ground for notice were reconstruction or demolition of the building, the law attaches further conditions to such a step, for example replacement housing. Building works are also governed by the Building Act (Act No. 283/2021 Coll.).
- A fixed-term tenancy ends when the agreed term expires, but until then it continues after a change of owner. Any extension or follow-on agreement must be assessed according to the specific wording and the statutory rules.
We cannot recommend circumventing tenant protection through pressure or dubious notices. It is legally risky and usually harms the marketability of the units as well.
Three scenarios: the tenant stays, buys or leaves
| Scenario | What happens to the tenancy | Impact on the sale |
|---|---|---|
| Tenant stays | The tenancy continues; the buyer steps into the landlord's position (§ 2221). | Buyers are mainly investors; price and timing depend on the terms of the lease. |
| Tenant buys | Once the tenant acquires ownership of the unit, the tenancy normally ends, as tenant and owner are the same person. | Usually the most direct route, but it depends on the tenant's financing and interest. |
| Tenant leaves | The tenancy ends by written agreement or another statutory method, followed by vacating the flat and settling the deposit. | A vacant unit is usually easier to sell, but an agreement costs money and time. |
Tenant stays
Legally, this is the least complicated scenario for the owner, but it raises the most questions from the buyer: the amount of rent, the length of the tenancy, the state of the deposit and the payment history. An investor buying the unit will value it by its rental yield.
Tenant buys
The law does not generally give a residential tenant a right of pre-emption (předkupní právo) over the unit. It could, however, arise from the contract or from earlier arrangements, so these need to be traced in the audit. Offering the unit to the tenant is a commercial decision, not a legal obligation, but it is often advantageous because you avoid having to find both a new tenant and a buyer.
Tenant leaves
An agreement to end the tenancy should be in writing and should set out the move-out date, handover of the flat, reconciliation of service charges and return of the deposit. Any financial compensation is a matter for negotiation; no fixed amounts or customs can be asserted in advance.
Impact on sale timing and unit prices
Occupied units are sold differently from vacant ones. Buyers who want to live in the flat usually do not want to take over a tenant, so this narrows the pool of interested parties. Investors, on the other hand, may value an occupied unit for its stable income. The specific impact on price depends on the state of the lease, the rent and the location, so it cannot be expressed as a general figure.
In terms of the economics of the whole project, the typical difference in value between selling the building as a whole and selling it unit by unit is +20–40%, although the exact figure is determined by a feasibility study. Tenancies are one of the variables in that calculation: they determine how many units can be sold vacant, how many occupied, and in what order. You can get an indicative estimate of potential in the building potential calculator, but a binding figure requires a review of the contracts.
Income tax also applies to a sale. Under the Income Tax Act (Act No. 586/1992 Coll.), for example, a time test applies when selling real estate, and it is assessed whether the property was used for housing. Check the details with the Financial Administration or a tax adviser.
Practical steps: a legal audit of tenancies before the sale
The recommended procedure for the owner of an apartment building:
- Inventory of tenancies: for each unit, collect the contract, addenda, proof of deposit, the amount of rent, payment history and all correspondence.
- Legal review: verify the type of tenancy (fixed-term or open-ended), any pre-emption right arrangements, special conditions and options for termination.
- Choose a scenario for each unit: keep the tenancy, offer the tenant the purchase, or negotiate termination by agreement.
- Timing: tie the sale to the project schedule so that units are not offered before their legal situation is clear.
- Cashless settlement: the purchase price is paid by bank transfer, ideally through a lawyer's escrow account. Cash payments are limited to CZK 270,000 per day (Act No. 254/2004 Coll.).
This step forms part of the paid feasibility study Audit a plán (Audit and Plan), with results delivered within 6 weeks. The project then passes through three gates (legal, permit, sales gate) and moves to the next phase only with confirmed figures; the process is described on the page Jak to funguje (How it works). You can find out who the service is for on the page Pro koho (Who it is for).
This text is a general explanation and is not a substitute for a legal review of specific contracts.