How to start an SVJ: The complete step-by-step guide

"So what, are we going to establish the SVJ or not?" – This question is asked by a lot of apartment owners in a house where several owners live. Some people are afraid of bureaucracy, others think that it is not needed, and others hope that someone else will do it. But if you are in a house with at least five units, you have no choice - the SVJ is required by law.

In this guide, I will show you the whole process of setting up the SVJ from A to Z - what you need to do, what documents to prepare, how to call the first meeting and what to watch out for.

What is the SVJ and why does it exist

The Unit Owners' Association (SVJ) is a legal entity created by law to manage the common parts of the house and land. It is not an association or an association - it is a legal form directly intended for apartment buildings.

Main purposes SVJ

1. Management of common parts – roof, facade, corridors, lift, cellar
2. Finance management – repair fund, accounting, payments
3. Making decisions about the house – repairs, reconstruction, operating rules
4. Legal representation – negotiations with authorities, suppliers, courts

When is SVJ mandatory

Under § 1198 of the Czech Civil Code (Act No. 89/2012 Coll.), an SVJ generally must be formed in a building with at least 5 units, at least 4 of which are owned by at least 4 different owners; registration and legal-person status follow the statutory process and are not simply automatic.

Example: Dům with 8 flats, 6 different owners = SVJ is mandatory. Dums with 4 flats, every other owner = SVJ is not mandatory, but it can be created.

When SVJ is created

Automatic creation by law

Meeting the numerical conditions does not by itself complete formation: establishment, registration and legal-person status must follow the current Czech statutory process. But beware - this does not mean that everything is done. You must register it in the register and give it functioning authorities.

Establishment before the conditions are created

You can also establish the SVJ earlier - for example, when the first apartments are sold by the developer. This is the so-called "waiting establishment".

SVJ establishment process step by step

Step 1: Preparation of documents

What you need:

• Declaration of the owner (a document that divides the house into units)
• Extract from the real estate register
• List of all owners with contacts
• Current state of management domu

Tip: If the owner declaration does not exist, you must create it first. This is a separate process.

Step 2: Preparation of the articles of association

The articles of association are the basic document of the SVJ. It must contain:

Mandatory details:

• Name and seat of SVJ
• Subject of activity
• SVJ bodies and their powers
• Rights and obligations of members
• Voting rules
• Management rules

Recommended details:

• Method of election of the committee/chairperson
• Length of term of office
• Rules for assembly
• House rules (may also be an attachment)

Sample bylaws: You can use the model bylaws available online, but I recommend modifying them for your particular house.

Step 3: Convening the constituent assembly

Who convenes:

• Developer (if the house is selling)
• Owners with a majority of shares
• Any owner (if others refuse)

The invitation must contain:

• Place, date and time of the meeting
• Meeting agenda
• Draft statutes for viewing (or where they are available)

Term: At least 30 days before the meeting.

Step 4: The course of the constituent meeting

Program:

1. Initiation and quorum verification
2. Election of chairman and recorder
3. Approval of the statutes of SVJ
4. Election of bodies (committee or chairman)
5. Management approval (repair fund, advances)
6. Misc. SVJ.

What you need:

• Completed form (available at justice.cz)
• Articles of association with officially verified signatures
• Minutes from the constituent assembly
• Attendance list
• Consent to the location of the headquarters
• Declaration of honor of the committee members

Fee: Kč 2,700 (can also be notarized, then it is faster).

Step 6: After registration in the register

Immediately:

• Apply for an ID number (part of registration)
• Open a bank account SVJ
• Check whether current Czech income-tax registration or filing duties apply; an SVJ does not automatically owe a tax return in every situation

Within 30 days:

• Inform the owners about the establishment of the SVJ
• Pass the agenda from the administrator/developer
• Set up advance payments to the SVJ

account## SVJ bodies and their roles

Owners' meeting

The highest body of the SVJ. Meets at least once a year.

Decides on:

• Changes bylaws
• Election and dismissal of the committee
• Approval of financial statements
• Significant repairs and investments
• Loans and pledges

Voting: According to the share of common parts (mostly corresponds to the size of the apartment).

Committee or chairman

Statutory body. Represents the SVJ externally and manages the regular operation.

Committee:

• At least 3 members
• The chairman of the committee is elected
• Decides collectively

Chairman (one-member body):

• Suitable for smaller houses
• Faster decision-making
• Greater responsibility on one person

Term of office: Establishes the statutes (usually 3–5 years).

Audit Committee (optional)

Supervises the management and activity of the committee. Recommended for larger houses.

Finance SVJ

Repair fund

Money for maintenance and repairs of common parts. Owners contribute according to the share.

Amount of contribution: Depends on the condition of the house and the plans. Usually 15–50 Kč/m²/month.

Advances for services

Energy, water, cleaning, elevator – advances are collected and billed at the end of the year.

Accounting

SVJ is required to keep accounts. An outside accountant or administrator is usually hired.

Common Incorporation Mistakes SVJ

Mistake 1: Poorly Prepared Bylaws

Problem: Bylaws are too general or inconsistent with the law.

Solution: Have the bylaws reviewed by a lawyer. An investment of 3-5 thousand crowns will pay off.

Mistake 2: Insufficient participation in the meeting

Problem: Not enough owners come and you cannot vote.

Solution: Intensive communication in advance. Offer the option of a power of attorney.

Error 3: Incomplete documents for the registry

Problem: The court will return the proposal for completion.

Solution: Use a checklist and check everything in advance.

Error 4: Failure to hand over the agenda from the developer

Problem: The developer does not want to hand over the documentation and finance.

Solution: Call for handover in writing. You have a legal right.

Mistake 5: No one wants to join the committee

Problem: Owners refuse to take responsibility.

Solution: Offer a reward for the feature. Alternatively, hire a professional chairman.

House management after establishment SVJ

Internal management

Committee members take care of the house themselves. Suitable for small houses with active owners.

Advantages:

• Lower costs
• Direct control

Disadvantages:

• Time consuming
• Necessity of knowledge

External administrator

Professional management company provides everything - accounting, maintenance, communication.

Advantages:

• Professionalism
• Saving time
• Knowledge of legislation

Disadvantages:

• Costs (typically 80-200 Kč/apartment/month)
• Less control

Management software SVJ

Modern approach combining the advantages of both. The committee has control, but the routine is handled by the system.

What the software can do:

• Records of owners and payments
• Automatic billing of services
• Communication with owners
• Online voting
• Records of repairs and defects

Important dates and deadlines

Action	Deadline
Invitation to the meeting	Min. 30 days in advance
Entry in the register	Within 30 days from the constituent assembly
Annual Meeting	Min. 1x a year
Billing of services	Within 4 months after the end of the
period Archiving documents	Retain for the periods required by applicable accounting, tax and limitation rules

Summary: Checklist for founding SVJ

Preparation:

• [ ] Declaration of owner exists
• [ ] List of owners is complete
• [ ] Statutes are ready

Constitutional meeting:

• [ ] Invitation sent 30+ days in advance
• [ ] The program contains all the points
• [ ] Most of the owners will come/send a power of attorney

After the meeting:

• [ ] Articles of association with verified signatures
• [ ] Minutes from the meeting
• [ ] Proposal for registration in the register
• [ ] Fee 2,700 Kč

After registration:

• [ ] Bank account
• [ ] Login to taxes
• [ ] Handing over the agenda from the developer
• [ ] Setting up owner payments

Establishing an SVJ is administratively demanding, but you do it once and then you just manage.

How Grento can help you

Grento supports the complete management of SVJ costs, including advances, repair fund and annual billing.

> Czech-law scope and editorial note: Legal, tax, accounting, tenancy, service-charge, condominium, metrology, insurance and data-protection statements in this article refer to the Czech Republic and the rules effective for the relevant date. Figures and examples are illustrative, not legal or tax advice. Verify current rules with the relevant Czech authority or a qualified adviser.

> SVJ clarification: SVJ formation, registration, quorum, per-rollam decisions, challenges, remuneration, tax treatment and contributions follow current Czech Civil Code and tax rules. "Fond oprav" is common shorthand, not a universal statutory account or Kč/m² rate; examples are planning illustrations.