Newsletter (not only) for brokers - Restrictions on purchases of agricultural land by foreigners, How to proceed with the purchase of agricultural land by foreigners, Eviction of a tenant without a court? With notarial deed it is possible again!

News in law: Restrictions on purchases of agricultural land by foreigners

You may have heard that new rules restricting the purchase of farmland by foreigners are in force from July 2024. An amendment to the Agricultural Land Fund (ALF) Act introduces a restriction that may also complicate the sale of land used as gardens for houses. If you are selling properties with gardens to foreign buyers, it is advisable to familiarise yourself with these changes as they may affect your work.

What exactly do the new rules bring?

The new rules target foreign buyers from countries that do not allow Czech citizens or companies to purchase agricultural land - so it is a reciprocal measure. This step responds to rules in other countries where similar purchases are prohibited for Czechs and their companies.

The restrictions apply only to citizens of so-called third countries. Exceptions apply to citizens of the European Union, the European Economic Area, Switzerland and countries with which the Czech Republic has special international agreements. In these cases, foreigners can own agricultural land without restrictions. These foreigners may continue to purchase agricultural land in the Czech Republic without restrictions. The ban also does not apply to cases where land is acquired by inheritance.

For real estate agents, this means that when selling land to foreign clients, it will be necessary to verify whether the land is agricultural land, from which country the prospective buyer comes and, if applicable, whether the country of origin of the prospective buyer allows Czech citizens and companies to acquire agricultural land.

Helpful hints: how to proceed when buying agricultural land by a foreigner?

1. Check that the land you are offering is not part of the agricultural land fund. You can find this out by looking at the Land Registry, under the property protection method section, where the land will be listed as part of the "Agricultural Land Fund".

2. Check the origin of the buyer. Find out whether the buyer is from a third country (outside the EU, Switzerland) which restricts the purchase of land by foreigners or foreign companies. Such a third country could be, for example, Thailand.

3. Seek legal support. If you have foreign clients, we recommend consulting a lawyer about alternative options for transferring the farmland, for example through a Czech legal entity.

Decision: Evicting a tenant without going to court? With a notarial deed it is possible again!

A recent Supreme Court decision (Case No. 31 Cdo 225/2024) brings good news for landlords. The Supreme Court has now confirmed that a notarial deed with permission for direct execution can again serve as an enforcement title for eviction of a tenant who refuses to leave the apartment after the end of the lease.

A notarial deed with direct enforceability is an effective tool, particularly for fixed-term leases. If a specific date is set for the end of the lease, the tenant is obliged to vacate the apartment at the end of the lease. If this obligation is secured by means of a notarial deed with direct enforceability, the landlord can proceed directly to eviction by vacating without having to go through lengthy court proceedings.