Required Disclosures for Commercial Leases in the Czech Republic

While the Czech Republic follows the principle of "caveat emptor" for commercial real estate under the overarching framework of the Civil Code (effective 1 January 2014), several mandatory disclosures regarding energy efficiency and building legality have been updated by the New Building Act (283/2021 Coll.), effective July 1, 2024.

1. Energy Performance Certificate (PENB)

The most strictly enforced disclosure remains the Průkaz energetické náročnosti budovy (PENB).

• Requirement: Under Act No. 406/2000 Coll., Section 7a, landlords must provide a copy of the PENB to a prospective tenant before the lease is signed.
• Advertising: The energy class (A–G) must be included in all public advertisements.
• Penalties: Failure to disclose or provide the PENB can lead to administrative fines of up to 100,000 CZK for individuals and 200,000 CZK for legal entities.

2. Zoning and Approved Use (The 2024 Building Act)

Effective July 1, 2024, the New Building Act has streamlined how commercial spaces are approved and disclosed:

• Kolaudační rozhodnutí (Occupancy Decision): Under Act No. 283/2021 Coll., commercial buildings (where users cannot influence the construction, per Section 230) require a formal occupancy decision issued by the building authority. The previous "kolaudační souhlas" (occupancy consent) is largely phased out for these property types in favor of the formal decision process.
• Povolení záměru (Project Permit): For new developments or significant changes in use, the old system of separate "zoning" and "building" permits has been replaced by a single, integrated project permit.
• Portál stavebníka (Builder’s Portal): All occupancy and technical documentation is now managed digitally. Landlords should disclose whether the premises have a valid digital record in the portal to ensure there are no legacy compliance issues.

3. Title and Encumbrances (Cadastral Extract)

It is standard due diligence for a landlord to provide a recent (less than 30 days old) Výpis z katastru nemovitostí (Extract from the Cadastre). This verifies:

• Ownership and potential "pre-emptive" rights.
• Mortgages: Almost all institutional commercial assets are mortgaged. Tenants should disclose whether they require a Non-Disturbance Agreement from the financing bank.
• Easements: Any rights of third parties to access the property (e.g., utility companies).

4. Technical Condition and Hazardous Materials

• Handover Protocol: While not a statutory disclosure, the "Předávací protokol" is the legal baseline for the property's condition. It should include high-resolution photos and technical specifications of all MEP (Mechanical, Electrical, Plumbing) systems.
• Hazardous Materials: Landlords must disclose any known environmental hazards. While there is no statutory "Asbestos Register" disclosure form required for commercial leases in the Czech Republic, disclosure of hazardous materials is governed by general pre-contractual liability and the duty to disclose defects under the Civil Code (Act No. 89/2012 Coll.).

Best Practices for Landlords

1. Digital Archive: Upload your occupancy decisions and PENB to the Landager document vault to ensure they are always ready for prospective tenants.
2. Check the Portal: Verify your building's status on the Portál stavebníka. The 2024 transition has identified many legacy buildings with "missing" occupancy permits that need rectification.
3. Draft 'Change of Use' Clauses: Clearly state that the tenant is responsible for any "změna v užívání" (change of use) required for their specific business license.

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