CZECH REPUBLIC Law and Practice Contributed by: Daniela Kozáková, ŠIROKÝ ZRZAVECKÝ, attorneys-at-law
(hereinafter referred to as the “Central List”), which is maintained by the Czech National Heritage Institute. 5.2 Cultural Heritage and Adverse Possession Based on Section 994 of the Civil Code, posses - sion is presumed to be proper, faithful and true. In accordance with the basic principles of legal cer - tainty and protection of acquired rights, a good-faith purchaser enjoys the same constitutional protection as an original owner. It must be always considered, objectively, whether a possessor is in good faith, and whether a purchaser should have had any reasonable doubts that an asset or right belonged to them during its prescription period (Supreme Court, No 22 Cdo 1843/2000 dated 7 May 2002). The good-faith purchaser who believes that they are the owner of a work may acquire its title either by “ordinary prescription” after three years of uninter - rupted good-faith possession or by “extraordinary prescription” that applies to cases when the good- faith possessor cannot prove the legal title upon which they possess it after six years of uninterrupted good- faith possession. These rules apply also to cultural monuments. Since the Czech Republic has a pre-emptive right to national cultural treasures as well as movable cultural treas - ures only if the protected asset is intended to be sold to a third party (ie, it must involve transfer of the own - ership title for remuneration), this does not apply to prescription. However, the pre-emptive right of the State remains unaffected for future sales. 5.3 State Rights to Cultural Heritage The Czech Republic has a pre-emptive right to all movable cultural treasures and, in the case of immova - bles, national cultural treasures only. This right applies when the owner of the asset intends to sell it to (for remuneration) to a third party (an exception applies on sales between relatives and co-owners). Note that the owner of a protected cultural treasure is obliged to offer the protected object to the Ministry of Culture before a sale, otherwise its disposal may be declared invalid within the three years following its sale if the Ministry of Culture decides to raise an objection.
For movable cultural treasures (artwork), the Ministry of Culture has three months from delivery of the notice from the owner to inform the owner of its intention or not to purchase the work. If the Ministry misses this deadline, the pre-emptive right cannot be used on this sale, but can be applied on a future sale of the work, if applicable. 6. Sale of Art Objects Domestically and Abroad 6.1 Key Clauses in Art Sale Contracts Most works of art are individual movable assets. Title to these works is transferred from the seller to the buyer once the purchase agreement is effective (usu - ally once all the parties enter into the agreement, or at later agreed date). The parties are at liberty to agree terms differently – eg, on reservation of the ownership title transfer only after the full purchase price is paid to the seller, which is quite common in an art transaction. The risk of damage to the artwork is usually trans - ferred to the purchaser only after the work is handed over to the latter. The expression of the intention of the seller to sell and that of the purchaser to buy must also be included in the contract. The specification of the work and its provenance is important, as it may affect later damages claims on the part of the purchaser. Originality and authentic - ity are vital features of the purchase contract, as is purchase price. As part of the warranty, the seller is obliged to sell and transfer to the buyer a piece of work matching the quality, execution and dimensions agreed in the contract. Also, a list of representations of the seller is usually included. If an artwork is pur - chased by a collection, it is also advisable to include a licence enabling the collection to reproduce the work in its publications, on-site screening, digital images, etc. This type of licence is usually also included in the purchase contract. Prior to the purchase, it should be verified with the Ministry of Culture and the Central List that the artwork is not a cultural monument. 6.2 Issues in Cross-Border Art Sales The Czech Republic implemented obligations follow - ing ratification of several international treaties that
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