How to Sell a Rented Flat with a Tenant: Rights of Both Parties and the Procedure

What Happens to the Tenancy When You Sell the Flat

The basic rule is straightforward: selling the flat does not interrupt the tenancy. According to § 2221 of the Civil Code No. 89/2012 Coll., the buyer (purchaser) steps into the rights and obligations arising from the lease in place of the current landlord. The tenancy agreement does not need to be re-entered into, and its terms remain unchanged: the rent amount, the lease period, and termination conditions.

This applies to both fixed-term and open-ended tenancies. The buyer is thus purchasing a flat encumbered by the lease and must account for it as an existing obligation.

We recommend checking exactly what the tenancy agreement contains. The buyer will want to know how long the flat is rented for, what the rent is, and whether there are any special clauses in the agreement.

Tenant Rights and Obligations During the Sale

The tenant's primary concern during the sale is stability. From their perspective, only the landlord's identity changes.

• The tenancy continues under the same terms, including the agreed-upon lease period.
• Termination is not automatic. The landlord can only terminate the lease on grounds specified in law (§ 2288 Civil Code). A mere change of ownership does not constitute such grounds.
• The tenant must pay rent to the new owner once they are informed of the change and provided with payment details.
• The tenant has no statutory pre-emption right (předkupní právo) for a standard flat. They may have one only if expressly agreed in the agreement; therefore, review the lease carefully before selling.

The tenant is also under no obligation to vacate at the buyer's request. If the buyer is looking for a flat for their own use, an occupied flat may not suit them.

When the Landlord Changes and What About Deposits and Rent

Ownership of the flat transfers only upon registration in the Czech Land Registry (katastr nemovitostí), not upon signing the purchase agreement. Under the Land Registry Act No. 256/2013 Coll., the land registry office cannot decide earlier than 20 days after notifying the owner; the average registration period is roughly 22 days. Until registration, you remain the landlord and the rent belongs to you.

In the purchase agreement, we therefore recommend clearly setting out:

• the date from which rent and service charge deposits transfer to the buyer,
• how the security deposit (kauce) left by the tenant will be handled; provisions on this are found in § 2254 et seq. of the Civil Code. After the transfer, the buyer becomes responsible for its return, so the deposit is usually transferred to the buyer or the price is reduced by that amount,
• who will settle service charges for the period before and after the transfer,
• the transfer of the tenancy agreement and any amendments to it.

Notify the tenant in writing and without unnecessary delay about the transfer. Provide the new owner's contact details and the account number for rent payments to avoid disputes over who should receive payment.

Practical Steps for Selling an Occupied Flat

1. Review the tenancy agreement. Verify the lease period, rent amount, deposit, and any special clauses.
2. Inform the tenant. An amicable agreement on viewings will facilitate the sale. Generally, the landlord has the right to enter the flat only within the scope and under conditions set by the Civil Code and the agreement, so arrange viewing times in advance.
3. Prepare documents: extract from the Land Registry (katastr nemovitostí), tenancy agreement, payment records, service charge settlements.
4. Draw up a purchase agreement with provisions on the lease, the deposit, and the transfer of the flat with the tenant.
5. File an application for registration with the Land Registry (katastr nemovitostí). After registration, hand over keys, documents, and meter readings to the buyer.
6. Notify the tenant of the change of landlord.

Selling an occupied flat typically takes longer, and buyers often offer a lower price for an occupied than for a vacant flat, as they take on the tenant and have limited rights to personal use. It always depends on the specific lease terms.

How a Property Buy-Back (Výkup) Can Work

If you do not wish to wait for a buyer willing to accept the tenant, you can also sell the occupied flat through a property buy-back scheme (výkup). For details, see the page on property buy-back with a tenant (výkup nemovitosti s nájemníkem). Our process works as follows:

• offer within 24 hours, in writing and non-binding,
• signing of contracts and deposit upon signature usually within 1–3 days,
• registration with the Land Registry (katastr nemovitostí) in approximately 3–4 weeks,
• final payment of the purchase price within 5 days of registration from lawyer's escrow.

Lawyer's escrow and legal services are free of charge, with no costs for repairs or vacating. The tenant remains in the flat. Payment is made by bank transfer; cash payments are limited to 270,000 CZK per day under Act No. 254/2004 Coll. The full process is explained on the page how the buy-back works (jak to funguje), and further questions are answered in frequently asked questions (často kladené dotazy).

Taxes and What to Watch Out For

Income from selling property may be subject to income tax under Act No. 586/1992 Coll. Generally, this depends on how long you owned the flat (the holding period) and whether it was your residence. For a rented flat, the situation is often different from a flat where you lived. Verify your specific tax obligations with the Czech Tax Administration (Finanční správa) or a tax adviser. The real estate acquisition tax was repealed by Act No. 386/2020 Coll., so the buyer does not pay it.

Also be careful with rent: settle it through the day of transfer and do not forget to hand over the deposit. Unresolved details often become a source of disputes with both buyer and tenant.