Yes, if the building’s technical layout allows it. Undivided shares in the whole house are replaced by separate flats, each carrying a co-ownership share in the common parts, facilities and land. The agreement must meet the requirements of the Flat Ownership Act, and ownership is acquired only upon registration in the Land Register. A house with no more than three flats is also exempt from the obligation to arrange building management.
Two siblings have inherited a house, each owns an undivided half and they occupy different floors. Formally, however, neither owns a specific space, only a share in the whole. This complicates a sale, mortgage or inheritance. A settlement converting the shares into separate flats can provide a solution.
What actually changes
Physical division of the property is the first method of settlement envisaged by law, and the court considers it first (Section 142(1) of the Civil Code). For a house, this is achieved by creating separate flats. An agreement terminating and settling co-ownership of immovable property must be in writing (Section 141(1)).
Ownership of a flat is acquired under an agreement with the owner of the building (Section 4(1)(a) of Act No. 182/1993 Coll.); a flat may also be held in co-ownership by shares or in spouses’ community property (subsection 2). Instead of a share in the whole house, you obtain a specific flat and an associated share in the common parts.
What the agreement must contain
The Flat Ownership Act is unusually detailed on this point. In addition to the general requirements, the agreement must describe the flat and its appurtenances; identify its location by flat and entrance number; specify its floor area and fittings; determine the co-ownership share in the building’s common parts and facilities, appurtenances, the land beneath the building and adjoining land; identify and describe the common parts and facilities, including those used by only some owners; regulate rights to the land; and contain the acquirer’s declaration of accession to the owners’ association agreement or management agreement (Section 5(1)).
The size of the share in the common parts is not a matter for agreement: it is determined by the ratio of the flat’s floor area to the total floor area of all flats and non-residential premises in the building. The exception is adjoining land, where the share is agreed between the acquirer and the building owner (Section 5(1)(b) and (e)).
The first agreement must include floor plans showing the flats, non-residential premises, garage parking spaces and storage spaces, their numbers and identification of the land (Section 5(5)). This is often the most labour-intensive part of the project and requires a surveyor or designer.
Ownership of the flat and all associated shares arises only upon registration in the Land Register (Section 5(4)).
Good news for small houses
The obligation to arrange building management arises on the first transfer of ownership of a flat, but the law provides two exceptions. It does not apply to buildings with no more than three flats, no more than three non-residential premises, or no more than three flats and non-residential premises combined; nor does it apply to buildings where the same owner owns all the flats (Section 6(1)).
A family house divided into two or three flats therefore does not require an owners’ association or a management agreement. This is one reason why this form of settlement is practical for families.
How to describe it in the registration application
Property must be identified in documents in the prescribed manner. For a flat, this means the flat number, floor number, entrance number and the co-ownership share in the common parts, facilities and land (Section 42(2)(c) of the Cadastral Act). As the flats are not yet recorded in the Land Register when the application is filed, the existing state of the house must be carefully distinguished from the new state of the units.
The registration application must cover all legal acts contained in the agreement that require registration, and all properties concerned. Only one agreement may be attached to the application, although that agreement may contain several legal acts (Section 30(5)). Splitting one project across several agreements therefore complicates the proceedings.
When it will not work
- The building’s technical layout does not allow it. Without separate entrances, metering and sanitary facilities, flats cannot be created and settlement must take another form; we discuss the order of settlement methods in a co-owner refuses to sell.
- The house is subject to a mortgage or other security right. Encumbrances do not disappear upon settlement; see a share is mortgaged.
- The co-owners cannot agree on values. Flats are rarely equal in value and the difference is balanced in money; this is difficult to negotiate without an expert valuation.
How we manage the process
We assess whether dividing your house into flats is feasible and, if so, prepare an agreement meeting the Flat Ownership Act, including calculation of the shares, as part of our settlement of co-ownership service. Subsequent transfers of individual flats are covered by our flat purchase agreement service. We handle the filing itself through preparation of agreements and registration applications, coordinating the floor plans with the surveyor as well.
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.
