Buying a share from an heir: when does the heir acquire rights and is it safe?

When the heir acquires ownership of the property

According to § 1479 of the Civil Code no. 89/2012 Coll., an heir acquires the inheritance at the moment of the testator's death, provided they do not disclaim it. The ownership right to the inherited share thus arises at that moment and there is no need to wait for registration in the Czech Land Registry (katastr nemovitostí). This differs from property purchase, where ownership is acquired only through registration.

This general principle has a practical catch. Until the probate process concludes, it may not be clear who all the heirs are, whether the will is valid, and what constitutes part of the inheritance. Moreover, an heir may disclaim the inheritance (§ 1485 of the Civil Code). The court's decision merely confirms who has acquired the inheritance and to what extent, and on this basis the status is registered in the Czech Land Registry.

What rights does the heir have during probate?

An heir already holds inheritance rights during the proceedings and may participate in the proceedings, raise objections, and take part in an agreement on the division of the inheritance. However, their position remains uncertain until the proceedings are finally concluded, as it can be challenged by, for example:

• validity or interpretation of the will,
• the existence of another heir, including a compulsory heir (povinný dědic),
• the scope of assets and debts that form part of the inheritance,
• an agreement between heirs about who receives what from the inheritance.

Where the inheritance is acquired by multiple heirs, joint ownership initially arises and only an agreement or court decision determines who receives what. The share the heir 'envisages' for themselves may therefore differ from the outcome of the proceedings.

Risks of buying a share before the probate ends

Anyone who buys a share before the inheritance is finally adjudicated assumes the seller's uncertainty. The most common risks are as follows:

• Change in the circle of heirs. If a later will or another heir comes to light, the seller's share may be smaller than expected.
• The deceased's debts. The heir is liable for them to the extent provided by the Civil Code and may be forced to pay them, which jeopardises both their assets and their ability to perform the contract.
• Inability to register. The Land Registry office registers changes on the basis of documents that prove the acquisition. Without a decision on the inheritance, registration may be delayed or refused (Land Registry Act no. 256/2013 Coll.).
• Mortgages, security interests and enforcement proceedings. The share may be burdened by security interests or restrictions from earlier times, or by the heir's own debts. This is related to buying a share in enforcement proceedings.
• Invalidity of the contract. If the seller transfers a right they do not have, there is a risk of a dispute over the validity of the contract and repayment of money.

Moreover, merely signing a contract does not establish ownership for the buyer. Ownership is transferred only through registration in the Czech Land Registry; the Land Registry office cannot decide before 20 days from notifying the owner and the average time for registration is about 22 days.

Pre-emption rights and the position of other co-owners

The general pre-emption right of co-owners was abolished by an amendment to the Civil Code. However, if the share was acquired by inheritance, the pre-emption right lasts for six months from the creation of co-ownership (§ 1124 of the Civil Code). Sale during this period must therefore take this into account, otherwise there is a risk of a dispute with other co-owners. You can find details on pre-emption rights of co-owners.

When preparing a sale, it also matters that the value of a share is not assessed simply as a proportion of the whole price. A share is traded at a discount due to limited usability and the price is determined mainly by usability.

How to proceed safely

The safety of buying a share from an heir rests on verifying three things: that the heir truly acquired the inheritance, that the share can be registered, and that payment will be made only when the transfer is certain. In practice, it is worthwhile to:

1. Obtain a final probate decision and verify the extent of the share in the Czech Land Registry.
2. Check whether the share is not burdened by security interests, enforcement proceedings or other restrictions.
3. Have a contract drawn up by a lawyer and use a lawyer's escrow account, not cash; cash payments are limited to CZK 270,000 per day (Act no. 254/2004 Coll.).
4. In the case of sale by an heir, consider the tax consequences under Act no. 586/1992 Coll. (time test, residence); a specific situation will be assessed by the Tax Authority or a tax adviser.

Inheritance tax was abolished (Act no. 386/2020 Coll.), so the buyer does not have to deal with it.

What you can do as an heir who wants to sell

If the proceedings are still ongoing and you need to resolve the situation, start with a non-binding indicative valuation. The valuation is non-binding and free of charge and in the first instance there is no need for a title deed. A written offer with price justification is usually prepared within 24–48 hours and other co-owners are not contacted unless necessary. The transfer takes place only after proof of acquisition of the inheritance; in the case of standard shares, the funds are available at the time of signing and the lawyer's contract and escrow are included in the price.

More about inherited shares can be found on the page on purchasing inherited shares, the procedure is described in the section on how the purchase of a share proceeds, and further answers are in frequently asked questions.