Declaration of ownership (prohlášení vlastníka)
A deed by which the owner of a building (often a developer) divides it into units and defines what belongs to each flat and its share in the common parts of the building and the land (§ 1166 of the Civil Code, občanský zákoník). It is entered in the land registry; only then do the units come into existence as separate properties that can be sold and pledged. The shares determine voting in the SVJ (owners' association) and contributions to management.
Example
The declaration of ownership defines a 65 m² 2+kk flat (two rooms plus kitchenette) with a share of 650/10,000 in the common parts, and the cellar is part of the unit. Both the CZK 5,000,000 purchase agreement and the pledge agreement for a CZK 4,000,000 mortgage at 5.00 % must identify the unit exactly like this. Otherwise the land registry suspends the application for registration.
In practice
For a new build, the declaration can be registered while the building is still under construction, and the land registry then records units under construction that can be sold and pledged. Many developers still sign purchase agreements only after occupancy approval (kolaudace); until then there is only an agreement on a future purchase agreement. In older buildings, check whether the cellar, parking space or front garden is part of the unit or merely a common part reserved for its exclusive use. The floor plan in the listing will not tell you. The mortgage side of buying from a developer is covered in mortgage for a new build.
How it differs
Where the declaration defines the units and their shares, the articles of the SVJ govern how the association runs and votes. The occupancy decision (kolaudační rozhodnutí) permits the building to be used but creates no units; they come into existence only when the declaration is entered in the land registry.
Frequently asked questions
What is a declaration of ownership (prohlášení vlastníka)?
The deed by which a building's owner, often a developer, divides it into flats and sets each flat's share in the common parts. Once it is entered in the land registry, the flats exist as separate properties that can be sold and pledged.
Can flats be registered before the occupancy approval?
Yes. A unit comes into existence once the building is closed by its perimeter walls and roof, and the land registry records units under construction, so the declaration can be registered before kolaudace.
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