What is a life estate (výměnek) and when to use it

A life estate agreement allows the person transferring property (grantor) to retain certain rights – typically to live in or use part of the property after transferring ownership.

Common use cases:

• elderly parents give their home to children but keep the right to live there,

• grandparents transfer land and reserve summer use,

• grantor secures care and support in exchange for the transfer.

Legal framework

Governed by Sections 2707–2715 of the Czech Civil Code.
It is a named contract that must be:

• in writing,

• clearly defined,

• registered in the Land Register (if related to real estate use).

Key elements of a life estate agreement

• Parties and transferred property

• Scope of retained rights (rooms, garden, storage, etc.)

• Duration (usually life-long)

• Duties of both parties (maintenance, utilities, care)

• Cost-sharing

• Land Register registration

• Termination and mutual agreements

• Signatures and date

Common mistakes

• Vague or missing description of rights

• No registration → unenforceable against new owners

• Lack of care-related provisions

• No agreement on expenses

• Informal or oral agreement → no legal value

Recommendations

Grantor:

• Be specific and protect your rights in writing

• Register your right in the Land Register

Grantee:

• Clarify duties and obligations to avoid future conflict

• Agree on financial responsibilities early

Practice tip

Life estate agreements are great tools for intergenerational transfers with dignity – but must be properly documented and recorded to protect both sides.

Life estate contract template – available for a symbolic fee

I offer a Czech-English template for life estate agreements, especially suited for home transfers.

Custom versions for more complex care and cohabitation options also available.

Reach out via e-mail or contact form – quick and caring solution.

FINAL THOUGHTS – WHAT NOW?

A life estate agreement isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting. I am a specialist on contract law – more information here.