Compensation for shared property use: how it's calculated and how to enforce it

Does a co-owner who doesn't live in the property have the right to compensation?

Under the Czech Civil Code (No. 89/2012 Coll., sections covering joint ownership from § 1115), every co-owner has the right to use the shared property, but only in a way that doesn't interfere with the rights of others. If only one co-owner occupies the house and you have chosen not to live there, the legal situation is more complex. The mere fact that another co-owner uses the property doesn't automatically mean they must pay you compensation.

The situation changes in these cases:

• the co-owners have agreed that use should be compensated (or divided differently),
• the majority or a court has decided how the property should be used and the occupant breaches those rules,
• the occupant effectively prevents you from using the property (changing locks, refusing to provide keys, denying you entry),
• the occupant lets the property to a third party and keeps all the income.

In the last two cases, a claim for unjust enrichment typically applies (Civil Code § 2991 et seq.). The specific assessment always depends on the circumstances, so it's worth documenting them carefully.

What the compensation comprises

Typically, there are three distinct claims that should not be confused:

• Compensation for excessive use – financial settlement for the fact that one party uses more than their ownership share justifies, or has prevented others from using the property.
• Share of income – if the house or part of it is rented out, the rental income generally belongs to co-owners in proportion to their shares.
• Share of costs – management, repairs, insurance and property tax are divided according to shares. If one co-owner has paid more than their share, they can claim reimbursement.

In practice, these claims are often offset against each other. A co-owner occupying the house and paying for utilities, repairs and insurance may set off their own claims against your compensation claim.

How the compensation amount is calculated

The law doesn't set a fixed formula. Courts and parties typically rely on the logic of market rental value for comparable use in the given location. The procedure usually works like this:

1. Determine what the occupant actually uses (the whole house, one floor, garden, garage).
2. Find out the market rental value for such use in the location at the relevant time. The most reliable way is a valuer's report; as a rough guide, you can compare advertised rental offers.
3. Calculate what share of this amount corresponds to your ownership share. The occupant can set off the fact that they use part of the house by right as a co-owner.
4. Deduct legitimate costs borne by the occupant that would otherwise be shared by all co-owners according to their shares.

For illustration: the house is occupied solely by one of two equal co-owners and prevents the other from using it. The basis is the market rental value for the house; the other co-owner is entitled to compensation corresponding to their share, reduced by their proportional share of the costs. The specific figures always depend on a valuation.

Compensation can be claimed retrospectively, but you must watch out for limitation periods. The general limitation period is three years (Civil Code § 629); for unjust enrichment claims, special rules apply about when the period begins and how long it lasts, so don't delay in asserting your claim.

Practical step-by-step enforcement process

1. Document the situation

Keep any communication in which you are denied access, photographs, witness statements, rental agreements (if someone else is renting the property) and receipts for costs you've paid. Provide a copy of the register from the Czech Land Registry (Katastr nemovitostí) showing your ownership share.

2. Send a written demand

Phrase your demand clearly: describe how the property is being used, state the amount and how you calculated it, set a reasonable deadline, and provide your bank account details. Send it in a way that can be proved (registered post or electronic delivery to a person's filing box). The demand also helps establish when the other party is in default.

3. Try to reach an agreement

An agreement might provide for regular monthly payment, division of use, or a commitment by the other party to buy out your share. Written form is strongly recommended; if you agree to transfer a share, the agreement must be in writing and ownership transfers only upon registration in the Czech Land Registry (Land Registry Act – Zákon o katastru nemovitostí č. 256/2013 Coll.).

4. File a claim for payment

If you can't reach agreement, you can file a claim for the money owed with the district court under the Czech Rules of Civil Procedure (No. 99/1963 Coll.). In your claim, you must state and prove how the property is being used, the amount of compensation and that you have been prevented from using it. Market rental value is typically proved by a valuer's report, which can be time-consuming and costly. Before proceeding, consider whether the amount in dispute justifies the cost and time involved, and consult with a lawyer about strategy.

Once a court judgement is final and binding, it can be enforced; if the debtor doesn't pay, you can apply for enforcement proceedings or execution under the Enforcement Act (No. 120/2001 Coll.).

Tax and other considerations

Payments you receive from another co-owner may have tax implications under the Income Tax Act (No. 586/1992 Coll.). The nature of the payment matters (whether it's classified as compensation for damage, unjust enrichment, or rent). Check with the Czech Tax Office or a tax advisor before you finalise any agreement.

Be aware that long-term disputes over compensation usually damage relationships between co-owners and don't end the joint ownership itself. If you don't want to continue with this arrangement, there are several options: reaching a settlement or court-ordered partition, buying out by the other co-owner, or selling your share to a third party. We cover these options in more detail in the article Settlement of joint ownership.

When it makes more sense to sell your share than fight for compensation

Court proceedings over compensation can be lengthy and require proof. If you don't use the property long-term, compensation claims are uncertain, and your relationship with the co-owner is strained, it may be more practical to sell your share. Shares are typically sold at a discount due to their limited use value; the price is mainly determined by how usable it is, not just proportional to the value of the whole property. The general right of first refusal for co-owners was abolished; an exception is a short right under Civil Code § 1124 for shares acquired by inheritance. For more information, see Buying out a share in a residential property and our frequently asked questions.

A free and non-binding valuation of your share is available at the outset; the first step doesn't require the title deed and we can send you a written offer with justification within 24–48 hours. We won't contact the other co-owners unless necessary.