Building management contribution (repair fund)

The contribution to the management of the building and land (příspěvek na správu domu a pozemku) is paid by every unit owner to the body responsible for managing the building: the owners' association (SVJ) or, where no association exists, the manager (Sections 1180 and 1190 of the Civil Code). It pays for managing the building: maintenance and repairs of the common parts, inspections of technical equipment, building insurance or bookkeeping. People commonly call it the repair fund (fond oprav); the law speaks of contributions to the management of the building and land.

How the amount is set

• Each owner contributes in proportion to their share in the common parts, unless the owner's declaration says otherwise (Section 1180(1)).
• The part for paying the manager or committee members, bookkeeping and similar administrative costs is split equally per unit (Section 1180(2)).
• The SVJ assembly approves the total contributions for the next period together with the budget, and decides what happens to unspent contributions (Section 1208).

Example

Illustrative example: the assembly approves CZK 600,000 a year for repairs and maintenance, and the flat's share in the common parts is 5%. The flat's part is CZK 30,000 a year, i.e. CZK 2,500 a month. On top of that comes the equal per-unit share of administrative costs.

Not the same as service advances

Besides the contribution, the owner pays advances for services linked to using the flat, such as heating and hot water, water and sewage charges, the lift, cleaning and lighting of common areas, or waste collection (Act No. 67/2013 Coll.). Advances are settled for a billing period of at most 12 months, and the statement must arrive within 4 months of its end. Inspections of the building's equipment are not service costs; they belong to building management. For a cooperative flat, the equivalent is the contribution to a long-term fund for repairs and investment, which is part of the rent.

What it means when buying and selling

When a flat is transferred, contributions are not settled: the seller does not get them back, as they are income of the association (Section 1186(1) of the Civil Code, Section 16 of Government Regulation No. 366/2013 Coll.). Debts for contributions and services that the buyer had and could have found out about pass to the buyer, and the seller remains liable for them. The seller should document them with a confirmation from the SVJ or manager. The amount of the contribution and the savings built up hint at what repairs lie ahead. The owner pays the contribution even when the flat is let, and gross rental yield does not take it into account.