Owners' association (SVJ)

An owners' association (společenství vlastníků jednotek, SVJ) is a legal entity that the flat owners in a building set up to manage the building and the land (Section 1194 of the Civil Code). Every owner of a unit in the building is a member, and membership is inseparably tied to owning the unit. An SVJ may not run a business and may acquire property only for managing the building and land.

When an SVJ is set up

The owners must set up an association in a building with at least five units, at least four of which belong to four different owners (Section 1198). If no SVJ were set up in such a building, the land register would not record the transfer of a unit to a further owner. The association is founded by approving its articles and comes into existence on the day it is entered in the register of owners' associations, kept by the registry court. Extracts are public on the justice.cz portal.

How the association works

• The supreme body is the assembly of all owners. Each owner's votes match their share in the common parts, and the assembly can pass resolutions when owners holding a majority of all votes are present.
• The statutory body is a committee, or a chair if the articles say so.
• The assembly approves the budget, the financial statements and the total amount of building management contributions, elects the committee, decides on larger repairs to the common parts and approves loans.
• Each member is liable for the association's debts in proportion to their share in the common parts.

What it means for a buyer

Anyone who buys a freehold flat in a building with an SVJ becomes a member. Before buying, it is worth reading the articles, the minutes of assemblies and the budget, finding out about planned repairs and the association's loans, and asking the SVJ to confirm the seller's debts. Debts for contributions and services that the buyer had and could have found out about pass to the buyer with the transfer (Section 1186). Every owner may inspect the association's contracts, accounts and records (Section 1179).

Frequently asked questions

Does a small building need an SVJ?

No. It is not mandatory in a building with fewer than five units or fewer than four different owners; with fewer than five units it can be set up only if all owners agree. Without an SVJ, a manager (správce) is responsible for the building and the rules in the owner's declaration apply.

Is an SVJ the same as a housing cooperative?

No. In an SVJ each member owns their flat and the association only manages the building. With a cooperative flat, the housing cooperative owns the flat and the building, and the member rents the flat.