Repair fund (fond oprav)
The colloquial name for money unit owners regularly pay to the SVJ (owners' association) or cooperative for repairs, maintenance and investment in the common parts of the building. In the Civil Code these are contributions to the management of the building and land (§ 1180). The owners' meeting approves the amount, usually by share in the common parts or by floor area. Whatever is saved belongs to the SVJ, not to individual owners.
Example
A 65 m² flat with a contribution of, say, CZK 40/m² pays CZK 2,600 a month into the repair fund on top of the CZK 23,384 payment on a CZK 4,000,000 mortgage (5.00 %). If the SVJ approves a roof replacement and doubles the contribution, monthly housing costs rise by another CZK 2,600.
In practice
A low repair-fund balance in an old building means major repairs will arrive as an extraordinary contribution or an SVJ loan. On a sale, the money saved is not refunded; it passes with the flat to the buyer. Price planned repairs into your offer, and include the contribution in the budget you put together with the bank.
How it differs
Unlike advance payments for services (water, heating, lift), which are settled once a year with any overpayment refunded, the repair-fund contribution is never settled. An SVJ loan for repairs is repaid by the association from the repair fund; it is not registered as a lien on your unit, but it raises contributions. In a cooperative building the cooperative owns the house and members pay for repairs through it; how buying differs is explained in mortgage for a cooperative flat.
Frequently asked questions
How much do owners pay into the repair fund?
Whatever the SVJ's owners' meeting approves, usually per m² of the flat or by the share in the common parts. At, say, CZK 40 per m², a 65 m² flat pays CZK 2,600 a month on top of the mortgage.
Does a repair fund debt pass to the buyer?
Unpaid contributions pass to the buyer only if he could have found out about them. The law presumes he could not if the debt is missing from the SVJ's confirmation or if the SVJ, though asked, did not issue it without undue delay, so get that confirmation before you sign.
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