Amendments to the Civil Code - what changes affect real estate law?
On 6 January 2023, the amendment to the Civil Code No. 374/2022 Coll. became effective.The reason for the adoption of the amendment was mainly the correct implementation of certain directives concerning consumer protection and the elimination of certain legislative shortcomings of the law. What changes this amendment brings and how it affects the area of real estate law, you will find out in the following lines.
Author of the article: ARROWS (JUDr. Lukáš Slanina, Mgr. Robert Dürrer, office@arws.cz, +420 245 007 740)
The first area affected by the change is the regulation of contracts concluded by distance and outside the business premises of the entrepreneur. In real estate practice, this regulation will apply in particular to brokerage and reservation contracts if they meet at least one of the definitions below. However, it excludes contracts whose subject matter is the creation, transfer or termination of a right in immovable property and the lease of a flat or house - for example, a contract of sale or a lease of a flat.
- A distance contract is a contract concluded without the simultaneous physical presence of the parties and through a means of distance communication - for example, via the internet.
- An off-premises contract is typically a contract entered into with the parties physically present but at a place other than the business premises of the entrepreneur - for example, at the client's home.
In the context of distance and off-premises contracts, the information obligations of entrepreneurs and the withdrawal clause have been amended. The changes in the case of withdrawal from a contract were only of a legislative and technical nature and are of no major significance for real estate transactions.
The withdrawal period is 14 days from the date of conclusion of the contract. If the consumer is not informed of this right, the period is extended by up to one year. If the conclusion of the contract is the result of an unsolicited visit by the estate agent to the consumer's home, the withdrawal period shall be thirty days.
The consumer may communicate the withdrawal information to the trader by any unambiguous statement in his own words - for example, a letter or a telephone call. However, the burden of proof of withdrawal lies with the consumer.
The amendment to the Civil Code has also changed the legislation on the so-called statutory guarantee in the case of sales of real estate to consumers. In practice, these are cases where the purchase contract is concluded directly by the real estate agency or developer on the seller's side. The amendment also introduced legislative changes in the area of the ordinary guarantee in the purchase contract. If you are interested in getting acquainted with these changes, please pay attention to the articles. and "Real Estate Warranty".