New build (novostavba)

What it means

In Czech property listings, a new build (novostavba) is a newly built apartment building or family house, and the flats in it, that nobody has used yet. The term covers finished buildings and buildings still under construction that are sold in advance. How many years old a building can be and still be advertised as a novostavba varies in practice, so ask for the year of occupancy approval (kolaudace).

New builds are most often sold within development projects, but a family house built by a private builder can be a new build too. The advantages tend to be modern layouts, new building services and fewer repairs in the first years; the downsides are a higher price, an unfinished neighbourhood and defects that only show up after you move in.

How it works in the Czech Republic

Before a new build can be used, the procedure under the Building Act must be completed; buildings that require it go through occupancy approval. Under the new Czech Building Act, a building that requires approval may be used only on the basis of an occupancy decision (kolaudační rozhodnutí) and only for the purpose stated in it. The former occupancy consent (kolaudační souhlas) no longer exists under the new act.

At handover, a handover protocol (předávací protokol) is drawn up, listing defects and unfinished work found, meter readings and the keys and documents handed over. If a latent defect in the building appears later, the Civil Code requires the buyer to raise it no later than five years after acquiring the property. Developers' contractual warranties vary, so read them in the contract.

In a new apartment building the developer often owns most of the units at first. Owners must set up an owners' association (SVJ) in a building with at least five units, at least four of which belong to four different owners. The SVJ then manages the building, runs the repair fund and handles complaints about common parts.