Building right (právo stavby)

Under Section 1240 of the Czech Civil Code, právo stavby (building right) is a right in rem of a builder to have a structure on or under someone else's land, whether it already exists or is yet to be built. It is an exception to the rule that a building is part of the land. The building right is itself immovable property, and the building that corresponds to it is part of the right (Section 1242). In the land register it is recorded as a separate property with its own title sheet (LV) (Section 3 of the Cadastral Act, Section 12 of Decree No. 357/2013 Coll.).

How it arises and how long it lasts

• It is created by contract, by prescription or by a decision of a public authority; a right created by contract arises only on entry in the land register (Section 1243), by registration.
• It is always temporary, for at most 99 years, and the last day must be visible from the register. A building right acquired by prescription lasts 40 years (Section 1244).
• It can be free of charge, for a one-off payment or for a recurring building fee (stavební plat, Section 1247).
• Land encumbered by a mortgage can be burdened with a building right only with the lender's consent (Section 1241).

What it means for a buyer

A buyer of a house on a building right buys the right including the building, not the land. Regarding the building, the holder has the same rights as an owner (Section 1250). The right can be transferred, inherited and encumbered, for example by a mortgage (Sections 1252 and 1253). By law, the builder has a right of first refusal to the land and the landowner to the building right, unless the parties agreed otherwise and had it registered (Section 1254).

When the building right expires, the building passes to the landowner. Unless agreed otherwise, the landowner pays the builder compensation of half the value of the building at that time (Section 1255). Mortgages and other rights over the building right then attach to this compensation (Section 1256).

Example

As an illustration: the LV gives 31 December 2070 as the last day of a building right. A buyer in 2026 therefore has about 44 years left. The remaining term and the agreed rules for the end of the right affect the value, so find them out before negotiating the price.

Frequently asked questions

How do I find out that a house stands on a building right?

From the title sheet extract, where the building right is listed as a property with the plot it was created on, its purpose (if stated) and its last day. You can also search for it in the online viewer Nahlížení do KN.

Can a building right be extended?

Yes, with the consent of those holding encumbrances on the land that rank after the building right (Section 1245). The total term, however, must not exceed the statutory limit of 99 years.