Selling a co-ownership share during court proceedings on settlement: what you must know
Published 30 October 2026
Yes, a co-ownership share can be sold even while court proceedings on co-ownership settlement are ongoing. Starting the dispute does not prevent the sale, and the dispute does not automatically end with the sale – the buyer may step into the proceedings in the seller's place. However, it depends on correct procedure before the court, registration at the Czech Land Registry (katastr nemovitostí), and whether the buyer assumes the procedural standing.
Summary
- Starting court proceedings on co-ownership settlement does not prohibit selling the share; the co-owner continues to have rights over the share (§ 1140 et seq. of the Civil Code No. 89/2012 Coll.).
- Transfer of the share does not end the dispute by itself – proceedings continue and the buyer may enter as a legal successor (§ 107a of the Code of Civil Procedure No. 99/1963 Coll.).
- Ownership passes only upon registration at the Czech Land Registry; the buyer should be aware of the ongoing dispute and regulate its impacts contractually.
- The main risks are unclear procedural standing of the buyer, uncertain outcome of the dispute, and lower price of the share.
- Before signing, a legal analysis of the case file and attorney escrow of the purchase price are advisable.
Can the share be sold while court proceedings on settlement are ongoing?
A co-owner may deal with their share – sell, gift, or encumber it – even while court proceedings are ongoing. The Civil Code No. 89/2012 Coll. does not provide that a motion to terminate co-ownership under § 1140 et seq. would restrict the transfer of the share. No prohibition of transfer arises simply from filing the claim.
A different situation arises if restrictions on the share exist for other reasons, such as an enforcement order, security interest, or insolvency proceedings. In such cases, dealing with the share may be restricted or prohibited under the Enforcement Code No. 120/2001 Coll. or the Insolvency Act No. 182/2006 Coll. See more on the page Buying out a share in enforcement proceedings.
The general pre-emption right of co-owners was abolished in 2020. It remains only in limited form for a share arising from inheritance, for a period of six months from the date the co-ownership arose (§ 1124 of the Civil Code). If this period has already expired, the other co-owners have no right to enter into the purchase. See details at Pre-emption right of co-owners.
What happens to the court dispute after the sale
Selling the share does not automatically end the dispute. Proceedings concern a specific property and co-ownership relationship, so they continue until the court renders a decision or until the claim is withdrawn or a settlement is reached.
The buyer's position is governed by the Code of Civil Procedure No. 99/1963 Coll., in particular § 107a. In practice, the following scenarios are possible:
- The seller remains a party to the proceedings – even though no longer the owner of the share, they may continue as a party and the judgment also applies to the buyer as a legal successor.
- The buyer enters the proceedings in place of the seller – the court decides on their entry by order according to the conditions of § 107a, usually on application and with the consent of the existing party.
- The dispute ends by settlement or withdrawal of the claim – for example, if the buyer agrees with other co-owners on settlement on different terms.
The exact procedural steps always depend on the state of the particular proceedings, so we recommend consulting a lawyer who is familiar with the case file beforehand.
How the court views the sale
The court does not regard the sale of the share as an obstacle to proceedings and does not examine whether the purchase price is reasonable. It is concerned with who is the owner at the time of decision and who is a party. It is therefore important to notify the court of the change and document it, otherwise the court might rule on a person who is no longer the owner.
When deciding on termination of co-ownership, the court proceeds according to § 1140 et seq. of the Civil Code. It essentially considers whether the property is divisible and may divide it, award it to one of the co-owners with compensation, or order its sale at public auction. In an auction, the opening bid is two-thirds of the final price (§ 336e of the Code of Civil Procedure, applied mutatis mutandis to enforcement proceedings). The buyer of the share must therefore accept that the outcome of the dispute may result in forced sale of the entire property.
A general overview of the options can be found in the article Co-ownership settlement: agreement, court, or share sale.
When ownership passes and what to watch out for when signing
Ownership of the property passes only upon registration at the Czech Land Registry (Katastrální úřad). The registry office must not decide on registration earlier than twenty days after notifying the owner (Land Registry Act No. 256/2013 Coll.); the average registration time is approximately twenty-two days. During this period, the seller remains both a party to the dispute and the owner.
When purchasing during proceedings, it is advisable to explicitly regulate in the contract in particular:
- the seller's statement on the state of proceedings and obligation to provide the buyer with copies of submissions and decisions,
- the seller's obligation to cooperate when the buyer enters the proceedings or is represented,
- rules for the event that the court decides otherwise than the parties anticipated,
- the payment and allocation of costs of proceedings already incurred.
The purchase price should be paid non-cash through attorney escrow. Cash payments are limited to CZK 270,000 per day (Law No. 254/2004 Coll.). The process from offer to signature is described on the page How share buyout proceeds.
Risks for the seller and the buyer
For the seller
- Lower share price. The share trades at a discount because of limited usability, and usability mainly determines the price, not just the ratio of the whole value. An ongoing dispute can further amplify this uncertainty.
- Costs of proceedings. The court decides on the costs of proceedings according to the Code of Civil Procedure; it is necessary to agree clearly with the buyer who will bear what.
- Tax implications. Income from the sale of property may be exempt or taxed under the Income Tax Act No. 586/1992 Coll., typically based on the time test or residential purpose. Leave specific assessment to the Tax Administration or a tax advisor. The transfer tax on immovable property was abolished (Law No. 386/2020 Coll.).
For the buyer
- Uncertain outcome of the dispute. The court may order an auction of the entire property or award it to another co-owner.
- Binding by previous actions. The buyer enters the proceedings in the state it is in.
- Hidden obligations. Before purchase, the certificate of ownership and any notes on restrictions, such as encumbrances or security interests, must be checked.
If other co-owners' disagreement is blocking you, also read the page Co-owner does not agree to the sale.
How to proceed in practice
Recommended procedure for a co-owner who wants to sell their share during proceedings:
- Prepare the claim or motion, court orders, and latest submissions to assess the state of the matter.
- Have the share valued without obligation. Valuation is free and a certificate of ownership is not needed at first. A written offer with price justification can be obtained within twenty-four to forty-eight hours.
- Have a lawyer assess how the contract will address procedural matters, namely the buyer's entry into proceedings and costs.
- Pay the price through attorney escrow; for standard shares, funds are available upon signature.
- After registration at the registry, notify the court of the change and propose next steps in the proceedings.
Discretion is particularly important in a dispute: we do not contact other co-owners unless absolutely necessary. You can find our contact information on the page Contact.