Co-ownership (spoluvlastnictví)
A situation in which one thing belongs to several people at once. The Civil Code recognises co-ownership in shares (§ 1115 et seq.), where each owner has a defined share, and co-ownership of a building divided into units. Married couples usually own property not in shares but as joint marital property. With a mortgage, every co-owner has to sign the pledge agreement.
Example
A mother and son buy a flat for CZK 4,000,000 in shares of 1/2 each. The son takes a mortgage of CZK 3,200,000 (LTV 80 %) over 30 years, with a payment of CZK 17,178 at 5.00 %. The bank wants a lien on the whole flat, so the mother signs the pledge agreement and often the loan agreement too, as a co-borrower, even though only the son will be paying.
In practice
A co-owner who later wants out of the mortgage needs the bank's consent, and whoever stays must be able to carry the loan alone. Banks also weigh the co-owners' ages, and an older parent can mean a shorter term. Agree in writing in advance on how a share will be bought out. Put a parent on the deeds only for their income and you may forget that their share passes to their heirs on death.
How it differs
Co-ownership in shares is the most common form, with the shares entered in the land registry. Joint marital property has no shares and belongs to the spouses jointly and undivided. People also mix up a co-owner with a co-borrower, who owes the bank but need not own the property. Co-ownership of a building split into units means owning a unit with a share in the common parts.
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