On 1 July 2020, an amendment to the Civil Code will come into force which both property developers and apartment owners are well-advised to give their attention, as it will modify the co-ownership of apartments in significant ways. Other changes affect the right of first refusal of co-owners (which will be heavily curtailed) or apartment leases (which may newly include clauses on contractual penalties, if only in a limited scope).

Act No. 33/2020 (hereinafter the “Amendment”), amending Act No. 90/2012, on corporations and associations (the Act on Corporations), as amended (hereinafter the “Act on Corporations”), entered into force on February 13 of this year upon its promulgation in the collection of documents. The Amendment was called “major” because it involves the most extensive changes to Czech corporate law in the past six years. Although the vast majority of provisions in the Amendment take effect as of January 1, 2021, it is important to prepare for them in advance.