Selling a Flat with a Tenant Who Damages Property: What Are Your Rights?

What Happens to the Tenancy When You Sell the Flat

Selling the flat does not end the tenancy; the tenant remains in the flat and the new owner becomes the landlord.

Under § 2221 of the Civil Code No. 89/2012 Coll., the buyer assumes the position of landlord. The tenancy agreement therefore continues on the same terms. Buyers typically examine it carefully during purchase and are interested in the tenant's conduct.

Ownership transfers to the buyer only upon registration with the Czech Land Registry (katastr nemovitostí — under the Land Registration Act No. 256/2013 Coll.). Until then, you remain the landlord and retain all rights and obligations towards the tenant.

What Rights Do You Have Against a Tenant Who Damages the Flat

A tenant is liable for damage caused by breaching their obligations, and you can pursue a claim for compensation.

This is based on the general rules for damages compensation under § 2910 et seq. of the Civil Code No. 89/2012 Coll. and the tenancy provisions. A tenant must use the flat properly and cannot make substantial alterations without the landlord's consent. Normal wear and tear is not considered damage, and the distinction must be provable.

Your right to claim damages is your own and does not automatically end upon sale of the flat. In your contract with the buyer, it is advisable to explicitly agree whether you retain the claim against the tenant or assign it to the buyer.

Practical steps:

1. Take photographs and keep dated records of the damage.
2. Write to the tenant formally, warning them and requesting remedial action.
3. Keep all communications, handover protocols, and any expert reports or repair invoices.
4. If applicable, verify whether you hold a security deposit and apply it according to the contract terms.

When Can the Tenancy Be Terminated?

Termination is only possible on grounds specified by law and with strict compliance with procedural requirements, so do not rely on it as a quick solution.

Under § 2288(1)(a) of the Civil Code No. 89/2012 Coll., a landlord may terminate the tenancy if the tenant seriously breaches their obligations despite written notice. For particularly serious breaches, § 2291 allows termination without a notice period. Notice must be in writing, state the reason, and include information about the tenant's right to request court review of its validity (§ 2290).

If the tenant does not vacate after termination, the matter goes to court, which can take considerable time. An improperly served notice can further complicate matters. If in doubt, consult a lawyer.

How to Disclose the Flat's Condition in the Purchase Contract

Openly disclosed damage represents lower risk for the buyer than a defect discovered after purchase.

The purchase is governed by § 2079 et seq. of the Civil Code No. 89/2012 Coll. The seller is responsible for defects, and if the goods are defective, the buyer has remedies under § 2161 et seq. A defect known to the buyer at the time of contract is typically priced accordingly, not the subject of later disputes. Conversely, concealed damage can lead to price reduction, contract termination, or damages claims.

Recommended contract provisions:

• description of the flat's condition with photographs as an attachment,
• confirmation that the buyer has inspected the flat and is familiar with its condition,
• agreement on who bears the claim for damages against the tenant and any security deposit,
• information about the tenancy agreement, rent amount, and payment status,
• method of transfer of the flat and tenancy agreement to the buyer.

What the Buyer May Request and When It Becomes Problematic

The buyer typically wants to know the flat's condition, whether the tenant pays rent, and how any repairs will be handled.

Commonly they request the tenancy agreement, proof of rent payment, a flat inspection, and information about any past disputes. They may also propose a lower price reflecting repair costs or place part of the purchase price in escrow pending resolution of a specific issue.

The problem thus lies not in the damage itself, but in the uncertainty surrounding it.

Why the Flat Can Be Sold in This Condition

A flat with a problematic tenant has a narrower pool of buyers, but buyers do exist, particularly investors and property purchase companies.

Some buyers account for repairs and negotiate accordingly. Buying tenanted flats works precisely for owners who do not want to deal with repairs or eviction. For details, see Property purchase with a tenant in place. The process typically works as follows: an offer arrives within 24 hours, in writing and non-binding; contract signing and deposit usually follow within one to three days; registration with the Land Registry takes approximately three to four weeks; and the balance is paid from the escrow account within five days of registration. No fees, no repairs, no eviction hassles.

The price difference compared to a problem-free sale is real, but its extent depends on the specific flat and cannot be predicted in advance. Other tax considerations relating to the sale (holding period, principal residence exemption) are governed by Tax Code No. 586/1992 Coll.; verify details with the Czech Tax Administration or a tax adviser.

What to Do Now

First, document the flat's condition and decide whether you want to handle the tenancy yourself or sell the flat as-is.

1. Document and photograph the damage; keep all communications with the tenant.
2. Prepare the tenancy agreement, Land Registry extract, and rent payment records.
3. Consider legal advice regarding termination or pursuing a damages claim.
4. Review how the purchase process works step by step and find answers in our frequently asked questions.
5. If you wish to sell the flat without repairs, submit the property details via the form below this article.

You will receive a non-binding offer or assessment via the form below this article. Nothing commits you to anything, and you decide on the next steps.