Amendment to the Property Code – a new property relationship

The institute of related property regulates cases where the use of ancillary immovable property is permanently needed for the regular use of one or more immovable properties or individual parts of buildings (principal property); in this case, the holder can relate his property right or building right on the ancillary property to his property right or building right on the principal property so that they are subject to disposition as a whole – this then becomes related property. Therefore, there is some functional connection between the ancillary and the principal property. The provisions governing condominium shall apply mutatis mutandis to the emergence of related properties. 

As an example, we can take a neighbourhood of single-family homes that have common land, such as an accessible trail or playground. Such legal positions can be resolved by co-ownership of this common property, and in this case the disposals, transfers of property must be made separately; the other solution is the establishment of real easements, which may not be the most appropriate way of regulating, since real easements are primarily intended to regulate different situations and such land can serve and pursue goals that do not overlap with the benefit of the land. 

The Property Code (SPZ) will now allow co-owners, with the consent of other co-owners, to limit their co-ownership rights on ancillary property in such a way that this co-ownership interest becomes inseparable from the ownership of their principal property. Therefore, it will not be possible to dispose of ancillary real estate independently (the same as with special joint work), but only together with the disposition of the principal property. 

Upon the creation of related property, real and other rights on the ancillary property shall be transferred to the principal property, except those whose enforcement is related exclusively to the use of the ancillary property. If any of the real estate is burdened with a real burden (e.g. a mortgage), the creation of related property is allowed only with the consent of the holder of such a right. If the ancillary and the principal property have legal pre-emptive rights of different beneficiaries or if a prohibition of alienation or encumbrance is entered, the creation of related property is not allowed.

If the ancillary property is co-owned by the owners of two or more principal properties, the provisions of the SPZ, which regulate the co-ownership on the common parts of the condominium building, shall apply mutatis mutandis to the relations between the co-owners. If the principal property is in co-ownership, joint or condominium property, the owners of this principal property act as a community in relation to the other co-owners of the ancillary property. 

The provisions of the SPZ governing the termination of condominium shall apply mutatis mutandis to the termination of related property. On foot of an application by a person who has a vested interest, the court may decide in the civil proceedings to terminate the related property, but not grant the application if one of the owners proves that the use of ancillary property is still permanently needed for the use of the principal property and that the connectedness of the property does not make it significantly more difficult to exercise the right of the holder that he acquired prior to the creation of the related property.