Legal Q&A · Property Transfer

The building manager refuses to issue a no-arrears certificate. Will this stop our flat sale?

Law as at 16 August 2026

Short answer

A certificate from the building manager or the chair of the owners’ association confirming that the owner has no arrears in service charges or contributions to the operation, maintenance and repair fund is a statutory annex to a flat transfer agreement. Without it, the agreement lacks a legally required annex and registration proceedings are usually suspended. An exception applies to the first transfer of ownership of a flat or non-residential premises in the building, such as a developer sale.

When selling a flat, this is one of the few annexes the seller cannot produce themselves. It is issued by a third party who has no involvement in the transaction and may be in no hurry. If the owner has a dispute with that person, this is often the first point at which the sale stalls.

What the law requires

An annex to an agreement transferring ownership of a flat or non-residential premises must be a certificate from the manager or the chair of the association of owners of flats and non-residential premises in the building confirming that the owner has no arrears in payments for services associated with the use of the flat or non-residential premises or in contributions to the operation, maintenance and repair fund; this does not apply to the first transfer of ownership of a flat or non-residential premises in the building.

Section 5(2) of Act No. 182/1993 Coll., unofficial translation

This is an annex to the agreement, rather than a required term within it. The distinction has practical consequences: its absence does not invalidate the agreement, but the registration application is incomplete and the authority will request the missing document.

The first transfer: the exception for developers

The certificate is not required for the first transfer of ownership of a flat in the building. This makes sense, as building management may not yet exist before the first transfer: the duty to arrange management arises on the date of the first transfer of ownership of a flat or non-residential premises in the building (Section 6(1)).

In practice, the term is sometimes interpreted as covering each flat’s first sale after occupancy approval. The wording refers to the first transfer of ownership of a flat in the building, which is a one-off event for the particular unit. If you are unsure which category your transfer falls into, attaching the certificate is cheaper than arguing about the interpretation in suspended proceedings.

The first transfer agreement must also include floor plans for the individual storeys, marking the flats, non-residential premises, garage parking spaces and storage spaces, their numbers, and identification of the land. The seller must submit the registration application and documentation (Section 5(5)). In development projects, this is a separate item in the timetable, not merely a formality.

When the manager will not issue the certificate

There are usually three reasons, each requiring a different solution.

There are actual arrears. The question is then who will pay and when. The purchase agreement and escrow arrangements address this: part of the price is used to settle the arrears and the certificate is issued against that payment. The sequence of steps matters more than the amount itself.

The arrears are disputed. The owner claims that the manager’s charges are unjustified. A dispute over the amount should not delay the transfer, so a retention is usually considered, with the disputed portion resolved separately.

The manager is inactive or in conflict with the owner. A written demand referring to the statutory duty and setting a deadline can help. Building management provides services for owners; it is not a means of exerting pressure (Section 6(2)).

What the agreement itself must include

Alongside a description of the flat and its location, the agreement must specify the co-ownership shares in the building’s common parts and facilities, appurtenances, land beneath the building and adjoining land, the arrangements governing land rights, and the buyer’s declaration of accession to the owners’ association agreement or building management agreement (Section 5(1)). We explain these in detail in what a flat transfer agreement must contain.

Ownership of the flat and all related shares is acquired only by registration in the cadastre (Section 5(4)). Transfer costs are borne by the seller, who may seek reimbursement from the buyer for administrative fees demonstrably paid and the notary’s remuneration (Section 5(8)). Agreements often describe this allocation incorrectly.

How we can help

For an individual sale, we prepare the flat purchase agreement and arrange escrow so that arrears do not cause delays. For estate agencies, we establish procedures and documentation so the certificate is requested at the start of the instruction, rather than a week before signing; see legal services for estate agencies. For development projects, we handle first transfers and the documentation under Section 5(5) as part of flat sales in a development project.

This answer provides general information on the law as at 16 August 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.

More legal questions

All questions and answers
  1. How does a reservation agreement work, and what happens to the reservation fee? A reservation agreement is an unnamed contract: the law does not regulate it specifically, but it is valid if it does not conflict with the law’s content or purpose. Its wording is decisive, particularly the parties’ commitments and what happens to the reservation fee if no purchase agreement is concluded. An agreement with a consumer must not contain unfair terms.
  2. Does a real estate agency have anti-money laundering (AML) obligations? Yes. A real estate agency is an obliged entity under the Act on Protection against the Legalisation of Proceeds of Crime. It must identify and verify clients, perform risk-based due diligence, have an internal AML programme and report unusual business transactions to the Financial Intelligence Unit. Failure to comply can lead to substantial penalties.
  3. Defects appeared after I bought the property. What can I claim from the seller? If a defect later emerges that the seller did not disclose, you are entitled to a reasonable reduction in the purchase price. If it makes the property unusable, or the seller gave false assurances about its qualities, you may withdraw from the agreement. Speed is crucial: notify the seller without undue delay, and no later than 24 months after taking possession, or your rights expire.
  4. Is VAT payable when selling property? It depends on whether the seller is VAT-registered and when the building received occupancy approval. Supply of a building, including the land beneath it, is exempt if it takes place five years after occupancy approval permitting first use or the start of first use. A VAT payer may opt to tax the transaction, but the law prohibits that for a residential building, an apartment and an apartmán unit in a residential apartment building.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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