Real estate items and (again) the pre-emptive right of co-owners

With effect from 1 January 2018 the statutory pre-emptive right of co-owners of a real estate comes back to the Civil Code. In the event of transfer of the co-owner´s share in the real estate, the other co-owners have the right to receive preferentially the transferred share. The pre-emptive right applies both to transfers for consideration and also to transfers without consideration (donation). Transfer of the share to close persons in the event of transfer of a co-owners share to a close person, the pre-emptive right shall not be applied. It must be underlined that the co-owner can waive his statutory pre-emptive right with effects for his legal successors and in the event of co-ownership of a real estate that is entered in the Land register this waiver of the pre-emptive right will be entered in the Land register.

The procedure described in the previous sentence can find practical use in particular in newly realized developer projects when the waiver of the pre-emptive right with effects for legal successor of the co-owner may facilitate substantially the negotiability of a co-ownership share – a co-ownership of an underground garage in a block of flats as units in co.-ownership of flats owners when the right of factual use of a concrete garage shelter is connected with the ownership right is a classic example.