Do I have to pay rent to a co-owner who lives alone in the shared house?

What the law says about use of a jointly owned property

The Czech Civil Code (Act No. 89/2012 Coll.) regulates co-ownership from Section 1115. Each co-owner is entitled to use the jointly owned property, but only in a way that does not curtail the equal rights of the others. A share does not mean that a co-owner owns a particular room or floor. It means they own an undivided (ideal) part of the whole property.

An important conclusion follows: if only one co-owner lives in the house and the others do not wish to, or cannot, live there, this alone does not breach their rights. An obligation to pay therefore does not arise automatically.

When a claim for compensation arises

The situation changes once one co-owner uses the property exclusively at the expense of another. Typical cases include:

• the other co-owner was evicted from the house, the locks were changed, or access was otherwise prevented;
• the other co-owner expressed an interest in using the property but was refused;
• the co-owner lets the house to a third party and keeps all the income.

In these cases, the return of unjust enrichment under Section 2991 et seq. of the Civil Code may come into play. A co-owner who used more than their entitlement was enriched at the other's expense by saving the cost of alternative housing. The amount is usually based on reasonable rent for the place and time, adjusted by the ratio of the shares.

However, if the co-owner who left the house voluntarily gave up use, the claim will be difficult to prove. The court will examine whether use was genuinely made impossible for them, or whether they showed no interest in it.

An agreement on use as the best solution

Co-owners may agree on how the property is used. The agreement may provide that one of them uses the house and pays the others a regular sum, or that they use it free of charge. It is advisable to make it in writing and to state in it:

• who uses which parts of the property,
• whether compensation is paid and in what amount,
• who pays running costs and repairs,
• how long the agreement lasts and how it can be terminated.

If agreement is not possible, the management of the jointly owned property is decided by a majority calculated by the size of the shares, and if there is disagreement, the court may decide on a co-owner's petition (Section 1128 et seq. of the Civil Code). The court may thus also regulate the manner of use.

After divorce and after inheritance: two typical situations

After divorce

First, it is necessary to distinguish whether the house belonged to the spouses' community property (společné jmění manželů) or was held in ordinary co-ownership by shares (podílové spoluvlastnictví). Community property is settled under Section 740 et seq. of the Civil Code. A former spouse who stayed in the house does not automatically have to pay rent before the settlement, but their exclusive use can be taken into account in the settlement. Special rules on housing after divorce are also found in Section 764 et seq. For details on dealing with a share in this situation, see the page Výkup podílu po rozvodu (buying out a share after divorce).

After inheritance

Heirs often acquire a house in fixed shares, and one of them continues to live there. The other heirs can assert a claim in the same way as other co-owners, namely mainly where they were prevented from using the property. If you have inherited a share and wish to end the co-ownership, see Výkup podílu z dědictví (buying out an inherited share).

How to assert the claim and how it expires

The procedure is usually as follows:

1. Invite the other co-owner in writing to agree on use or to pay compensation, and state how it is calculated.
2. Keep evidence, for example correspondence, proof of a lock change, refusal of access, or data on comparable rents in the area.
3. If you cannot agree, the claim can be pursued by a court action. Legal advice beforehand is sensible; general information is available in our advice centre.

The claim is subject to limitation (prescription). Under Section 629 of the Civil Code, the general limitation period is three years and starts to run when the entitled person learned of the claim and could assert it (Section 619). At the latest, the right expires on the lapse of the ten-year objective period (Section 636). A claim for a long period may therefore be time-barred only in part. The start of the period is always assessed according to the circumstances of the case.

How to take the claim into account when settling or selling a share

The claim for compensation need not end up in court. It can be taken into account in an agreement on the settlement of co-ownership (vypořádání spoluvlastnictví), for example by set-off against a balancing payment. It can similarly be reflected in a mutual settlement when one co-owner buys out the share of another.

If you want to sell a share to a third party, be aware that shares trade at a discount because of their limited usability, and the price is determined mainly by usability, not merely by the proportion of the value of the whole. The fact that only one co-owner lives in the house should therefore be reflected in the valuation. For an indicative view, see the page Ocenění spoluvlastnického podílu (valuation of a co-ownership share); the valuation is non-binding and free, and in the first step no title deed (list vlastnictví) is required.

Ownership of a property passes only upon registration in the Czech Land Registry (katastr nemovitostí) (Land Registry Act No. 256/2013 Coll.). Cash payments are limited to CZK 270,000 per day (Act No. 254/2004 Coll.), so the purchase price is usually paid by bank transfer through a lawyer's escrow account (advokátní úschova).