Who should pay the rent and utilities when the apartment is transferred?

A model example of a dispute that could save you thousands. Imagine a situation where you are buying an apartment where the tenant remains. The purchase contract is concluded, the ownership is already registered in the land registry, but the actual handover of the apartment will take place only a few weeks later. It is in this interim period that the dispute will flare up. Who is entitled to the rent for that month? Who pays the utility bills? And how to budget all this fairly?

Author of the article: ARROWS (Mgr. Michal Stafinski, office@arws.cz, +420 245 007 740)

Model scenario

• The purchase contract is signed.
• The entry into the cadastre will take place at the beginning of the month.
• However, the physical handover of the apartment does not take place until the third decade of the same month.
• In the meantime, the tenant pays the standard rent for the whole month in advance.

The rent lands in the seller's account - he feels entitled to keep it. The buyer, on the other hand, claims that as the new owner and future landlord, he is entitled to the money. Who is right?

What does the law say?

In terms of the Civil Code:

• The ownership right is transferred to the buyer upon entry into the Land Registry (§ 1105).
• Thelandlord's rights and obligations pass to the new owner at the same time (§ 2221).

Does this mean that once registered as owner, the buyer becomes the landlord? Yes. But what about rent? What about utility costs?

The moment of taking possession of the apartment is decisive.

Although ownership has already legally passed, until the buyer takes possession of the flat and actually starts managing it, the seller is responsible for the property. Unless the contract of sale provides otherwise, the following applies:

• The rent is due to the seller for the period when the apartment has not yet been handed over.
• The buyer is only entitled from the day he actually takes possession of the apartment and assumes the role of landlord in practice, not just legally.
• Utilities and services are apportioned according to the number of days each party has had the property in his possession.

How to account for this fairly?

Let's say a month has 30 days.

• The handover took place on the 20th day of the month.
• So we logically split the rent and utility deposits:
• Seller: 20 days → 66.7%
• Buyer: 10 days → 33.3%

Example:

Total rent 15.000 CZK

→ Seller: 10.000 CZK

→ Buyer: 5.000 CZK

The same applies to utility deposits or other tenant payments.

When is the problem?

• The purchase contract does not specify from when the rent is due to the buyer.
• It is not explicitly stated how the charges are calculated.
• Ambiguity about the handover date causes confusion: one party relies on the Land Registry, the other on the keys.

How to avoid this?

• Always include a clause in the purchase contract about the transfer of rental income and responsibility for costs.
• Specify the exact date of handover of the apartment and define it as decisive for the distribution of payments.
• Modify the method of pro-rating if the handover occurs during the month.

A lawyer as your safety valve

Many disputes arise from the omission of details that "get sorted out". But once money is involved, goodwill is often not enough. A quality legal service in the preparation of a purchase contract means the difference between a quiet deal and a lengthy dispute.

Do you need a contract that thinks about the reality after signing? Get in touch. We can help you sort out not only the transfer of ownership, but also all the pitfalls around rent, utilities and legal obligations. Because a contract is there to protect - and it's there to protect you.