What is Act No. 250 / 2023 Coll.?

Act No. 250 / 2023 Coll., on Public Auctions — Public auction law.

When it became Act No. 250 / 2023 Coll. effectiveness?

Act No. 250 / 2023 Coll. became effective 01.01.2025.

Is Act No. 250 / 2023 Coll. still valid?

Yes, Act No. 250 / 2023 Coll. is still valid and effective.

How many times was it Act No. 250 / 2023 Coll. amended?

Act No. 250 / 2023 Coll. has 3 time versions of the text.

Act No. 250 / 2023 Coll.

Public auction law

Valid Law Effective from 01.01.2025

Text versions: 01.01.2025 25.08.2023

ČÁST PRVNÍ § 1 § 2 § 3 ČÁST DRUHÁ HLAVA I § 4 § 5 § 6 § 7 § 8 § 9 § 10 § 11 § 12 § 13 § 14 § 15 § 16 § 17 § 18 § 19 § 20 § 21 § 22 § 23 § 24 § 25 § 26 § 27 § 28 § 29 § 30 HLAVA II § 31 HLAVA III § 32 § 33 § 34 § 35 § 36 § 37 § 38 § 39 § 40 § 41 § 42 § 43 § 44 § 45 § 46 § 47 § 48 § 49 § 50 § 51 § 52 § 53 § 54 § 55 § 56 § 57 § 58 ČÁST TŘETÍ § 59 § 60 § 61 ČÁST ČTVRTÁ § 62 § 63 § 64 ČÁST PÁTÁ § 65

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250

THE LAW

of 13 July 2023

on public auctions

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

GENERAL PROVISIONS

§ 1

Subject matter

(1) That law lays down rules for the conduct of public auctions, specific rules for the execution of forced auctions and the pursuit of public auctions.

(2) The public auction is an auction in which the auctioneer turns to an unspecified number of persons at a pre-determined location with a call for tenders for the conclusion of a purchase contract or a contract for a future purchase contract with the person who, under the specified conditions, makes the best offer.

§ 2

Auctionaries

(1) The auctioneer is the person who carries out the public auction as an entrepreneur.

(2) The auctioneer is also:

(a) an organisational component of a State or a State organisation where it carries out a public auction of the assets of a State or other property with which it is entitled to dispose;

(b) a territorial unit where it carries out a public auction of its assets or other assets with which it is entitled to dispose; For the purposes of this Act, the municipal part of the capital of Prague is also understood as being self-governing.

§ 3

Central records of public auctions

(1) The central register of public auctions (hereinafter referred to as "central register") is an information system of public administration, the administrator of which is the Ministry of Regional Development (hereinafter referred to as "Ministry"). Central records shall be publicly accessible in a way that allows remote access.

(2) In the central register, the Ministry publishes the auctioneers

(a) the name and surname, name, business name or designation;

(b) the identification number of the person,

(d) the type of data box and the identifier of the data box,

(e) the address of the person's registered office;

(f) the address of the place of establishment;

(g) establishment identification number;

(h) subject matter of business;

(i) the date on which the trade licence was established;

(j) the period of validity of the trade licence;

(k) the period of suspension or interruption of the business;

(l) the date of expiry of the trade licence;

(m) an indication of the authorisation to organise public auctions of securities;

(n) the date of establishment of the authorisation to organise public auctions of securities;

(o) the date of suspension of the authorisation to organise public auctions of securities and its duration;

(p) the date of expiry of the authorisation to organise public auctions of securities;

(q) an indication of the issue of the bankruptcy decision, the decision that the debtor is not in bankruptcy, the decision on the method of resolution of bankruptcy and the decision to cancel the bankruptcy, the decision to comply with the restructuring plan or the essential parts thereof, the decision to settle the debt and the decision to cancel the bankruptcy on the ground that the debtor's assets are not sufficient to satisfy the creditors;

(r) an indication of the legal person's entry into liquidation;

(s) obstacles to the operation of trade pursuant to Section 8 of the Trade Act;

(t) additional information relating to the scope of the trade authorisation pursuant to § 45 (2) (e), § 45 (3) (e) and § 45 (4) of the Trade Code and to the conditions for the pursuit of trade pursuant to § 27 of the Trade Code.

(3) The data referred to in paragraph 2 are taken by the Ministry from the basic registers, the information system of foreigners, the public part of the trade register and the data provided by the Czech National Bank to the Ministry under another legislation.

(4) In the central register, the Ministry also publishes the auction notices, additions to the auction notices and other documents or data the central register of which the auctioneer is obliged to provide under this law.

(5) The Ministry shall publish the documents or particulars referred to in paragraph 4 on the basis of an application by the auctioneer made through a central register on the relevant electronic form available in the central register within 2 working days of the date of receipt. The Ministry shall verify the compliance of the data contained in the electronic form with the data kept in the basic register of legal persons, business natural persons and public authorities, in the basic register of residents, in the information system of foreigners, in the basic register of territorial identification, addresses and real estate and in the public part of the trade register. If these figures are not identical, the Ministry shall inform the auctioneer of this fact via central records. The documents and data referred to in paragraph 4 shall be published in the central register for at least 5 years.

(6) The details of the data transmitted to the central repository by means of an electronic form, the method of verifying such data and the method of entering the central repository shall be laid down in the implementing legislation.

ČÁST DRUHÁ

RULES FOR THE IMPLEMENTATION OF THE PUBLIC DRAFT

HLAVA I

GENERAL RULES

§ 4

Conclusion of the contract in public auction

In a public auction, the contract is concluded by a document. A derogation shall not be taken into account.

§ 5

Insurance of liability

(1) The auctioneer referred to in Article 2 (1) must be insured in the event of an obligation to make good the damage caused in connection with the execution of public auctions.

(2) The insurance referred to in paragraph 1 must be arranged with an insurer who is entitled to provide such insurance in the Czech Republic under the law governing the insurance sector.

(3) The agreed amount of the insurance performance limit in the event of the auctioneer's obligation to make good the damage caused in connection with the public auction must be at least CZK 500,000 for each insurance event, in the event of multiple claims in one year at least CZK 1,000.

(4) The agreed participation must not exceed CZK 5,000 for each individual insurance event.

(5) The insurer may terminate or withdraw from the insurance contract only for the reasons set out in the provisions of the Civil Code governing the insurance contract.

§ 6

Special account

(1) The auctioneer is obliged to deposit funds received in connection with a public auction into a special account held in the Czech Republic with a bank or foreign bank established in another Member State of the European Union, in a State Party to the Agreement on the European Economic Area or in the Swiss Confederation which operates in the Czech Republic through its branch; This does not apply to the remuneration of the auctioneer and to the cost of the public auction. These funds may be used only for the purpose laid down by this law.

(2) The funds received in connection with the public auction shall not form part of the auctioneer's assets under the bankruptcy law and its methods of resolution and shall not be affected by the execution of decisions against the auctioneer; This does not apply to the remuneration of the auctioneer and to the cost of the public auction.

§ 7

Public auction contract

(1) A public auction may be conducted on the basis of a public auction contract concluded between an auctioneer and a person who is entitled to transfer title to the subject of a public auction or to monetize the object of a public auction under another public auction law (hereinafter referred to as the "applicant").

(2) If the appellant is an auctioneer at the same time, the publication of the auction order is sufficient to carry out the public auction instead of the public auction contract.

(3) The public auction contract shall contain at least:

(a) the designation and description of the subject matter of the public auction and its accessories;

(b) the way in which the bidding price and the bidding price are to be expressed and, if the bidding is to take place in the Dutch way, the arrangement by which the bidding price will be gradually reduced and to which the lowest amount can be reduced;

(d) the remuneration of the auctioneer or the way in which he is designated and the arrangement between him or the auctioneer, or how he or she is involved, or whether the public auction is free of charge; and

(e) an indication that the purpose of the public auction is to conclude a contract for a future purchase contract, if that is the case.

(4) Where the purpose of the public auction is to conclude a contract for a future purchase contract, the time limit for payment of the price resulting from the auction may not begin before the conclusion of the purchase contract.

(5) The public auction contract requires written form. In the case of a public auction of immovable property, the signatures of the parties to this contract must be officially verified.

§ 8

Public auction costs

The auction costs shall be borne by the auctioneer, unless otherwise agreed.

§ 9

Auction security

(1) The auctioneer may, after interested in participating in the public auction, request the provision of an auction security to ensure payment of the price obtained by the auction, the cost of the public auction and the remuneration of the auctioneer.

(2) The auction security shall be provided in cash. The auctioneer may also allow the provision of an auction guarantee in the form of a bank guarantee under the conditions laid down by the auction order.

(3) The time limit for granting the auction guarantee shall run from the date of publication of the auction order. There shall be no more than two working days between the last day of the deadline for granting the auction security and the day of the public auction. Where the auction security is provided in the form of a bank guarantee, the award of the auction security shall be documented to the auctioneer within the time limit for providing the auction guarantee.

(4) The auction guarantee may not exceed 30% of the call price, but may not exceed CZK 3 000 000.

(5) A person who has not auctioned the subject of a public auction shall return the auctioneer's guarantee provided without undue delay after the public auction has been concluded or the public auction has been abandoned; This applies even if the auctioneer does not carry out a public auction.

§ 10

Participation in the public auction

(1) The interested party shall become a participant in the public auction at the time of entry on the list of participants in the public auction.

(2) The auctioneer shall enter in the list of participants in the public auction a candidate for participation in the public auction who, at the latest before the opening of the public auction, has shown his identity to the auctioneer and has provided the auctioneer with a money security within the prescribed time limit or has provided the auctioneer with an auction guarantee in the form of a bank guarantee if the auction security was required.

(3) Where several persons participate in public auctions for the purpose of joint acquisition of ownership of the subject-matter of the public auction, those persons shall be entitled and bound jointly and severally to comply with this law.

§ 11

Data entered in the list of public auction participants

(1) The auctioneer shall enter in the list of participants in the public auction:

(a) a natural person on his or her behalf or by a commercial firm, with his or her birth number and, if not assigned to him, the date of birth, and the address of his or her permanent residence and, if not, his or her address;

(b) a legal person by his name or business name, identification number of the person or other similar identification information, if assigned, and the address of the registered office.

(2) The auctioneer of persons referred to in Article 10 (3) shall enter in the list of participants in the public auction in what co-ownership shares the subject of the public auction will be acquired and, if it is a property regime for which the shares do not express that the object of the public auction will be acquired in that property scheme. This information shall be recorded even if one of the persons who is to acquire the subject of the public auction together with another person does not participate in the public auction under an asset regime for which the shares are not expressed. The auctioneer shall indicate on the list of participants in the public auction that he is not a participant in the public auction.

(3) Where a trust administrator participates in a public auction, the auctioneer shall enter that fact in the list of participants in the public auction, including the designation of the trust fund and its identification number. The Trustee shall include in the list of public auction participants the information referred to in paragraph 1.

(4) Where applicants for participation in a public auction are represented, the auctioneer shall also enter the information referred to in paragraph 1 on the list of participants in the public auction.

§ 12

Persons excluded from public auction participation

(1) A public auction participant may not:

(a) an auctioneer performing a public auction and, where the auctioneer is a legal person, a person who is a member of its statutory, supervisory or other similar body or is a representative of a legal person in that body;

(b) a person who, during the public auction, represents an auctioneer and, where that person is a legal person, a person who is a member of its statutory, supervisory or other similar body, or is a representative of a legal person in that body;

(d) persons acting with a person referred to in (a) or (b) in agreement, persons controlled by a person referred to in (a) or (b), persons controlling a person referred to in (a) or (b) and persons controlled by the same person with a person referred to in (a) or (b);

(e) the applicant,

(f) the owner of the public auction object (hereinafter referred to as the owner),

(g) a person who does not comply with the requirements laid down in another legal act or a founding act for the acquisition of a holding in a commercial corporation which is limited to the transferability of such a holding if it is the subject of a public auction; and

(h) the person responsible for controlling the public auction.

(2) The auctioneer shall not list candidates for participation in a public auction who may not participate in a public auction.

§ 13

Auction Order

(1) The auctioneer shall publish an auction order containing at least:

(a) the name of the auctioneer;

(b) the name of the appellant, if he is a person different from the auctioneer and the owner, if he is a person different from the appellant and if he is known to him,

(d) the description and description of the subject-matter of the public auction and its accessories, the rights attached to the subject-matter of the public auction and the defects linked thereto, in so far as they affect the value of the subject-matter of the public auction, a description of the state of the subject-matter of the public auction and an indication that the subject-matter of the public auction is a cultural monument, if that is the case,

(e) the way in which it is expressed,

(f) the invoking price and the indication that the auctioneer may reduce it, if so,

(g) the minimum bid if the licitation is to take place in English;

(h) the time limit and method of payment of the price obtained by the auction, the identification details for making the payment, the designation of the person to whom the price is paid and the indication of the currency, if the payment of the price is accepted in a non-Czech currency,

(i) indication that the purpose of the public auction is to conclude a contract for a future purchase contract, if that is the case;

(j) the period within which the party to the contract of future purchase is entitled to invite the other party to conclude the contract of sale and the period within which the party to the contract of future purchase is obliged to conclude the contract of sale after inviting the other party to bid if the purpose of the public auction is to conclude the contract of future purchase contract and the determination which parties to the contract of future purchase contract are obliged to conclude the contract of sale,

(k) any other arrangement of the purchase contract or contract for a future purchase contract to be concluded by a measure if it has been agreed in the public auction contract or if the auctioneer and the appellant are the same person;

(l) the amount or method of determining the remuneration of the auctioneer and its maturity if the auctioneer pays it;

(m) the amount, period and method of granting the auction guarantee and its repayment, if any;

(n) the place, date and time of inspection of the subject of the public auction, if any;

(o) the conditions for the surrender of the subject of the public auction to the auctioneer; and

(p) the order of auctioning of public auction items if more than one is to be auctioned.

(2) The place, date and time of the public auction or any other fact referred to in the auction order must not unduly restrict the possibility of participating in the public auction.

(3) The auctioneer shall ensure that the auction order is published in the central register so that it is published in it for at least 15 days before the date of the opening of the public auction. For perishable public auction items, the auctioneer may reduce the time limit for publication of the auction order accordingly.

(4) In addition, the auctioneer shall publish an auction order for at least the period referred to in paragraph 3 in a place easily accessible to the public, in particular on the Internet, and, in the case of electronic auctions, at the website where the electronic auction will take place.

(5) The Auction Order cannot be amended further. This shall not apply where there are changes in the scope of the rights of the public auction and the defects linked thereto, or the state in which the public auction is situated, or where an error in writing or numbers is detected or other obvious imperfections. The auctioneer shall ensure that the supplement to the published Auction Order is attached without undue delay after having become aware of these facts.

§ 14

Abandonment of public auction

(1) The auctioneer shall refrain from a public auction if the appellant so requests in writing not later than the start of the public auction.

(2) The auctioneer shall inform the auctioneer of the abandonment of the public auction without undue delay after having been requested by the applicant in the same way as the auction order is published.

§ 15

Barriers to public auction

(1) The auctioneer shall not make a public auction and shall immediately terminate the public auction already commenced if it becomes apparent that:

(a) the public auction contract has been concluded with a person who has not been or is not entitled to do so;

(b) the subject of a public auction may not be monetized under any other legal provision or the title to the subject of a public auction may be transferred;

(d) another infringement of this law or other legislation would be committed by public auction.

(2) The auctioneer shall notify the appellant, without undue delay, of the non-execution or termination of the public auction referred to in paragraph 1 and of the reason for its non-execution or termination. At the same time, the auctioneer shall notify the details of these facts in the manner in which the auction order is published.

General conditions for public auction

§ 16

The public auction shall be open to the public. Access to the premises in which the public auction will take place shall be granted free of charge and in sufficient time before the public auction begins.

§ 17

(1) The public auction must take place in the Czech language.

(2) An auction order and documents which are published in the same way as an auction order must be published and available in the Czech language.

§ 18

Pre-purchase right

(1) Where the subject of a public auction is subject to a right of pre-sale, the applicant shall not be obliged to offer the subject of a public auction to a procuring party for purchase; This does not apply if it is a pre-purchase right with a predetermined purchase price or a predetermined method of determining the purchase price. However, the appellant shall inform the auctioneer of the right to buy and the person of the procuring party.

(2) The auctioneer must notify the subscriber of the public auction.

(3) Where there is an obligation under the right of pre-sale to offer the subscriber the subject of a public auction to purchase before the conclusion of the purchase contract and the prohibition of such a contract to conclude before the expiry of a certain period of time from that offer, the public auction may be held only after the expiry of that period of time from the announcement of the public auction to the subscriber, or, if that period is more than 2 months and not more than 2 months from the date of that notification; This shall not apply if, after such notification, the subscriber has given written consent to the earlier public auction.

(4) The announcement of the public auction shall be considered as an offer to the owner of the cultural monument pursuant to Article 13 (2) of the Act on State Heritage.

(5) A procuring entity which is a party to a public auction may submit an offer of the same amount as that already obtained by the offer of another public auction participant. If the subscriber submits an offer of the same amount as the public auction participant to whom otherwise a payment should be made, the subscription shall be granted to the subscriber. If several subscribers submit the same offer, the ticket shall decide which of them shall be awarded.

(6) Paragraph 2145 of the Civil Code does not apply; This does not apply if it is a pre-purchase right with a predetermined purchase price or a predetermined method of determining the purchase price.

(7) The transfer of ownership rights to the subject-matter of the public auction does not invalidate the substantive pre-purchase right.

(8) If the subscriber has a right to pre-purchase the subject of the forced auction, he may only use it as a participant.

§ 19

Opening of public auction

The auctioneer shall declare the opening of a public auction and shall immediately provide the information referred to in Article 13 (1) (d) to (f). If there is a way of doing that under Paragraph 20, the auctioneer shall also indicate the minimum bid. Subsequently, the auctioneer shall invite the tenderers to submit tenders.

§ 20

English way of licitation

(1) In the case of licitation in English, the first tender must be submitted at least at the rate of the call-up price and each additional bid must be higher by at least a minimum bid. The auctioneer shall give the highest bid to the public auction participant.

(2) Prior to the award of the tender, the auctioneer shall repeat three times the amount of the last bid and at the same time invite the public auction participants to submit a higher bid and shall also invite the subscriber to complete the bid if the public auction takes part.

(3) In the case of an electronic auction, paragraph 2 shall not apply and the apportionment shall be granted after the closing date for the submission of tenders.

(4) The minimum bid shall not exceed 5% of the trigger price. During the bidding process, the auctioneer may reduce the minimum bid.

(5) The auctioneer may reduce the invoicing price if this has been agreed in the public auction contract.

(6) If more than one public auction party simultaneously submits a bid of the same amount and no higher bid has been made, the auctioneer shall decide by drawing lots to which of them he or she shall grant the case.

§ 21

Dutch way of Licitation

(1) In the case of licitation carried out in the Dutch way, the auctioneer gradually reduces the call price and grants a bid to the public auction participant who will be the first to submit a bid at the current call price.

(2) If a subscriber also participates in the public auction, the auctioneer shall invite the subscriber to complete the tender before the award of the subscriber's payment.

(3) In the case of an electronic auction, the time limit for the submission of tenders shall end with the award of a payment.

(4) If several public auction participants submit a bid of the same amount at the same time, the auctioneer shall decide by drawing lots which of them shall be awarded the apportionment.

§ 22

Termination of the public auction

(1) The public auction is closed

(a) by the award of a case;

(b) a declaration by the auctioneer that no tender has been submitted,

(d) for a sudden insurmountable obstacle.

(2) The auctioneer shall notify the price obtained by the auction or the fact that no bid has been made within 5 working days of the date of the public auction in the same way as the auction order is published.

(3) The public auction concluded in accordance with paragraph 1 (d) shall be resumed, unless otherwise assessed by the auctioneer and the appellant. The auctioneer shall notify without undue delay the reason for the termination of the public auction and the place, date and time of the new public auction or the indication that the public auction will not be reopened.

§ 23

Auction Protocol

(1) Where a purchase contract has been concluded in a case, the auctioneer shall draw up, at the request of the auctioneer, an auction protocol and transmit it to the auctioneer within 5 working days of the date of receipt of the auctioneer's request. Where a contract for a future purchase contract has been concluded, the auctioneer shall draw up an auction protocol without the request of the auctioneer and shall forward it to the auctioneer and owner within 5 working days of the date of issue of the payment.

(2) The auction protocol shall be indicated as such, indicate whether the purchase contract or the contract for the future purchase contract has been concluded or shall include at least:

(a) the information referred to in Article 25 (3) (a) to (f); and

(b) the amount, time and method of payment of the price obtained by the auction, including the identification details of the person to whom the price is paid.

(3) The Annex to the auction protocol must be an auction decree, including its amendments.

§ 24

Acquisition of title

(1) The auctioneer shall be the owner of the price obtained by the auction as determined within the prescribed time limit by the person to whom the price is paid.

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Regulation Information

Citation	Act No. 250 / 2023 Coll., on Public Auctions
Regulation Type	Law
Author	-
Collection	Code of Laws

Date of Promulgation	25.08.2023
Effective from	01.01.2025
Effective until	-
Status	Valid

Legal Areas: Information, Data, Data Civil law Civil law substantive Administrative offences Administrative law State (official) control

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