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Short-term letting and forced sale of a unit: the Supreme Court's decision and its consequences
30/12 2023 Eduard Mráz Copy URLShare

Short-term letting and forced sale of a unit: the Supreme Court's decision and its consequences

1. Limitation of the rights of unit owners:

According to a recent decision of the Supreme Court of the Czech Republic (file no. 26 Cdo 854/2022), a unit owners' association (HOA) cannot, through its statutes, restrict the rights of unit owners, including the right to short-term rental of their apartment. This decision represents a significant milestone in the protection of owners' rights and provides clear guidance for the management of condominium units.

2. Procedure in case of forced sale of a unit:

The Supreme Court also emphasized the ability of the HOA to petition the court for a forced sale of the unit if the owner is in breach of his or her obligations. The procedure is as follows:

(a) Written warning to the owner: Before filing a motion to sell the unit, the HOA must send a written warning to the owner. This warning should state the reasons for the warning, warn of the possibility of a forced sale, and request that the violation cease. The owner must be given a reasonable period of time to cure, at least 30 days.

(b) Consent of a majority of unit owners: the HOA must obtain the consent of a majority of all unit owners to file a forced sale petition. In determining this majority, the vote of the owner affected by the forced sale shall not be considered.

Conclusion:

This Supreme Court decision emphasizes the importance of compliance with the laws and procedures within a condominium association. It is a key precedent for resolving disputes between HOAs and unit owners, particularly in the context of short-term rentals and forced sales. Unit owners and HOA governing bodies should be well versed in these rules and procedures to ensure fair and efficient management of the condominium. 
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