Penalty for delay with provision of final service charges settlement when renting a flat in the Czech Republic.
Obligation to provide a service statement within 4 months of the end of the billing period
The landlord (owner) of the apartment is obliged to provide the tenant in accordance with Act No. 67/2013 Coll, 104/2015 Coll., as amended by Act No. 104/2015 Coll. (hereinafter referred to as the "Services Act"), to settle the actual amount of the costs and advances for individual services for the settlement period and to deliver the settlement to the tenant as a recipient of services within 4 months of the end of the settlement period at the latest and to make the financial settlement itself within this period, unless otherwise provided by additional Czech legislation. The landlord as service provider must state in the statement the actual cost of the services broken down by the services provided, with all the necessary particulars, including the total amount of the monthly advances received for services, so that the amount of any differences in the statement is clear and auditable in the light of the methods and rules agreed for the settlement.
The Services Act also regulates other issues related to the provision of services associated with the use of flats and non-residential premises in a building with flats (hereinafter referred to as "services") and the procedure for determining advances for services, billing, accounting and settlement of service costs. The Services Act shall also apply to non-residential premises if there is non-residential premises in the building with flats; however, it shall not apply to services which the tenant, as recipient of the services, provides for himself without the involvement of the service provider.
Pursuant to Section 3(1) of the Services Act, services include in particular the supply of heat and centralized provision of hot water, water supply and sewage disposal, operation of lifts, lighting of common areas in the building, cleaning of common areas in the building, removal of sewage and cleaning of septic tanks, ensuring radio and television reception, chimney operation and cleaning and municipal waste disposal.
Penalty for delays in providing settlement (billing) of the service charges in Czech Republic
If the landlord, as a service provider, fails to comply with the above mentioned obligations, in particular if the landlord fails to deliver the settlement (billing) of the service charges in due time, he is obliged to pay the tenant a penalty, unless the fulfillment of the obligations within the stipulated period was not justifiable or if the tenant caused the delay himself/herself. If the amount of the fine has not been negotiated, the sum of the fine is CZK 50 for each additional day of delay. The amount of the fine may be agreed by the landlord with at least a two-thirds majority of tenants in the building or it may be decided by the cooperative or the community. The agreed fine may not exceed CZK 50 for each day of delay.
For more information, contact us at:
JUDr. Mojmír Ježek, Ph.D.
ECOVIS ježek, advokátní kancelář s.r.o.
Betlémské nám. 6
110 00 Praha 1
e-mail: mojmir.jezek@ecovislegal.cz
www.ecovislegal.cz
About ECOVIS ježek advokátní kancelář s.r.o.
The Czech law office in Prague ECOVIS ježek practices mainly in the area of Czech commercial law, Czech real estate law, representation at Czech courts, administrative bodies and arbitration courts, as well as Czech finance and banking law, and provides full-fledged advice in all areas, making it a suitable alternative for clients of international law offices. The international dimension of the Czech legal services provided is ensured through past experience and through co-operation with leading legal offices in most European countries, the US, and other jurisdictions. The Czech lawyers of the ECOVIS ježek team have many years of experience from leading international law offices and tax companies, in providing legal advice to multinational corporations, large Czech companies, but also to medium-sized companies and individual clients. For more information, go to www.ecovislegal.cz/en.
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