Public benefit construction (VPS)

Under the Czech Building Act a public benefit construction (veřejně prospěšná stavba, VPS) is a building or facility of public infrastructure intended for the development or protection of the territory of a municipality, region or the state, designated in zoning documentation. Typical examples are a road, pavement, sewer, water main, transformer station or public space. They are designated in the zoning plan, and constructions of supra-local importance also in the regional development principles. In the zoning plan they appear on the drawing of public benefit constructions, measures and clearance areas, each with its own label.

What it means for an owner

Rights to land and buildings needed for a VPS can be taken away or restricted by expropriation. This is a last resort, however: expropriation is only allowed in the public interest and only if the rights cannot be obtained by agreement. The expropriating party must first offer the owner a contract with a price based on an expert valuation, and the contract can be concluded within 90 days. Only then can expropriation proceedings follow, which end with compensation.

Pre-emption rights from older plans

Under the previous Building Act, zoning and regulatory plans could create a pre-emption right of the municipality, region or state over land for a VPS. The new Building Act no longer allows this. A pre-emption right set in older documentation lapses when a plan amendment removes it or replaces it with a VPS designation, and at the latest 4 years after the new Act took effect, i.e. in 2028. A registered pre-emption right appears on the title deed extract; after it lapses, the entitled party arranges its deletion from the land register.

Points to check before buying

• Whether a VPS crosses the plot itself. The affected part may then face a buy-out or restriction.
• What is planned nearby. A new road or sewage treatment plant can bring noise and traffic, while a new pavement or sewer can add value.
• A VPS designation says nothing about when it will be built. It may be a plan for many years ahead.
• Besides constructions, the plan also designates public benefit measures, such as flood protection or wildlife corridors, to which the same expropriation rules apply.