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Users of short-term rentals and especially those who provide accommodation themselves or through platforms like Airbnb can now breathe a sigh of relief. In a dispute between a unit owners' association and a unit owner, the Supreme Court under the resolution ruled against pre-emptive restrictions on property rights. Restricting or prohibiting the use of units by their owner for said purposes is not within the power of the owners' association assembly, according to the Supreme Court's decision.
This question has been occupying the Czech courts for several years. Disputes similar to the one between the partners of one of Prague's SVJs are no exception.Despite the disagreement of some of their members, the SVJs have pushed through an article in their statutes that conditions the renting of individual flats for a period shorter than 3 months on the consent of the other owners. One of the outvoted owners, of course, did not want to be restricted in the use of his apartment unit. Therefore, he applied to the court for a declaration that the decision of the JVU in question was null and void.
After 15 March 2023, however, the resolution of these disputes will be a little clearer. As the Supreme Court has stated: "If a meeting of the owners' association decides, by means of the statutes, to restrict the right of ownership of the unit owners with regard to the use of the apartment, it is a decision taken on a matter which that body has no competence to decide, and it is regarded as if it had not been taken." In regulating the conditions of the building, the owners' association can only move within the limits of its statutory competence. And this, according to the Supreme Court, is limited to the management, operation, maintenance, repair of the house, its common parts and the land.
It is true that the Supreme Court also mentions in the decision that "If the owner of the unit uses the apartment for a purpose other than that stated in the declaration of the division of the right to the property, in particular by repeatedly disturbing the usual peace and order in the building, the owners' association may, in accordance with the Civil Code, invite the owner in writing to remedy the situation and subsequently, in the event of non-compliance with this invitation, propose the forced sale of the unit." However, a bylaw provision that interferes with an individual's property rights "prophylactically" is not permissible.
Therefore, if a similar issue applies to you, you can now refer to the new Supreme Court decision and disregard such a restriction. In the eyes of the law, it is so-called null and void - non-existent. The Supreme Court's decision includes a recommendation on how to legally deal with the negative impact on the peace and quiet of the house. However, a decent provider of accommodation and short-term rentals can certainly cope with such restrictions without any problems.
Are you resolving a dispute with the HOA regarding the use of your unit for short-term rentals or are you concerned about a similar dispute in the future? Do not hesitate to contact us.
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Stewarts
'No one has done as much for me as you,' Eva said.
Stewarts
"A visit to her daughter in London turned Eva's life upside down when she says she stepped into a crossing on a green light but was hit by a car. Despite her remarkable bravery, she faced a long treatment due to fractures in her pelvis, and the associated limitations and pain are likely to persist for the rest of her life. Regular headaches and impaired concentration compound her challenges.
Eva contacted us through an organization temporarily helping her manage her difficult living situation. At that time, she was destitute, relying only on subsistence payments. We were able to assist her because we specialize in personal injury and have contacts with proven colleagues abroad.
We worked with Stewarts, a UK law firm, on this case. Attorneys Klára Dvořáková and Rebecca Huxford helped Eva with the documentation in her case, explaining her options and the differences between the Czech and British systems of healthcare and social benefits reimbursement. Within a few months, thanks to the professional cooperation between the two offices, an offer of compensation from the insurance company of approximately CZK seven million was achieved. The client accepted this settlement because she did not want to deal with courts in the United Kingdom.
Subsequently, we assisted the client with related tax issues and contacted Auditone, a tax consultancy firm, which arranged for the filing of a tax return. Compensation for lost income is taxable, unlike most personal injury compensation.
'No one has done as much for me as you,' Eva said.
The fact that we were able to help Eva gives our work meaning and brings us great joy. We are very happy that, thanks to our many years of active involvement in the international professional organization PEOPIL, we can cooperate on such cases."
Livingstone, Tour Operator
Thank you again for your valuable advice. I breathe better when I know who to turn to.
Livingstone, Tour Operator
"Thank you again for your valuable advice. I breathe better when I know who to turn to."
Anders Thorsen Advokatanpartsselskab
It has been an absolute pleasure to work with you.
Anders Thorsen Advokatanpartsselskab
"It has been an absolute pleasure to work with you and your colleagues. Your advice and way of handling the matter and our communication has been of the highest quality and we are very happy with the outcome.
If any of my clients need assistance in matters in the Czech Republic in the future, I know who to recommend."