Expert explanation

Under the Czech Civil Code, a change of property ownership does not by itself terminate the lease agreement. The new owner assumes the rights and obligations of the landlord as they stood at the time ownership transferred. This means the lease continues without change – including the agreed term, rent amount, service charges, and all other terms.
There is therefore no need to sign a new contract unless both parties wish to make changes. A change of owner may be grounds for termination only if the law allows it – for a fixed-term lease, only in cases expressly provided by law; for an open-ended lease, the statutory termination grounds apply.
Regarding the deposit (security), the obligation to return it passes to the new owner, even if you paid it to the previous landlord. The tenant is entitled to demand the deposit from the new owner when the tenancy ends.

Main risks and common mistakes

• Signing a new lease unnecessarily – tenants often sign a less favourable contract even though the original one remains valid.

• Confusion over the deposit – some new owners claim the deposit must be returned by the previous landlord; this is not in line with the law.

• Unlawful rent increases – the new owner may only change the rent in accordance with statutory rules, not arbitrarily.

Step-by-step procedure

For tenants:

1. Verify the ownership change – e.g., by obtaining a land register extract.

2. Make sure the new owner is aware of your lease terms.

3. Do not sign a new contract unless it is advantageous for you.

4. Keep proof of the deposit payment.

For the new owner:

1. Take over all documents related to the tenancy.

2. Inform the tenant in writing about the change of ownership and where to pay the rent.

3. Respect the valid lease and statutory notice rules.

Real-life example

A tenant had a fixed-term lease with a fixed rent. The apartment was sold, and the new owner asked her to sign a new lease with higher rent and a shorter notice period. After a legal consultation, she refused – her original contract remained valid, and the new owner had to respect the original terms.

Why be cautious with DIY solutions

Without knowing the law, a tenant might agree to unfavourable changes just because “the new owner wants it.” Likewise, the owner risks breaking the law if they try to change terms without agreement and outside the statutory framework.

You might be thinking…

“When the owner changes, can they evict me immediately?”
No – they must comply with the statutory reasons and procedures. A change of owner alone is not a reason for immediate termination.

Lawyer’s recommendation – checklist

• Tenant: Do not sign a new contract without thorough review.

• Owner: Take over all tenancy documents and ensure continuity of rights and obligations.

• Both: Communicate in writing and keep proof of payments and the deposit.

FAQ

Do I have to sign a new contract after a change of owner?
No, the original contract remains valid.

Who returns the deposit when the owner changes?
The new owner, even if it was paid to the previous landlord.

Can the new owner raise the rent?
Yes, but only under statutory rules and with proper notice.