Giving a Czech flat to your child while keeping the right to live there
Parents want to give a flat to their daughter and carry on living there together. A family understanding may work for everyday arrangements. The gift documents can also deal with a future sale, a major repair or the death of one parent.
Describe the right each parent should have
One option under Czech law is a right of habitation registered in the Land Register as a servitude. The change in ownership and the new right can be submitted for registration together. Name both parents if each should have an individual right. Specify whether they can use the whole flat or only part of it and whether they also need access to a cellar or common entrance.
Agree who pays for running costs and repairs
Discuss utilities, service charges and routine maintenance, as well as the cost of replacing a boiler or making major repairs. Where an owners' association manages the building, distinguish what the owner owes the association from any amounts the parents agree to reimburse. Agree who can enter the flat in an emergency or to arrange repairs.
Check the mortgage and think about a future sale
Review the Land Register extract and loan documents. An existing mortgage or other restriction can affect the transfer and the creation of the right of habitation. Discuss any likely sale or refinancing before filing. A registered servitude will generally continue to burden the property when ownership changes, so describe it clearly enough for a future buyer to understand.
Czech Civil Code, sections 1262 and 1297 · Czech Land Registry – Gift with simultaneous creation of a servitude