Shrnutí: Real estate agents can no longer operate in the Czech Republic without meeting the legal requirements. The Real Estate Brokerage Act has introduced, among other things, professional qualifications, mandatory insurance, and rules governing contracts, commissions, and the escrow of funds. As of 2026, real estate brokerage is therefore a regulated activity. However, even these rules do not relieve buyers or sellers of the need to thoroughly review the contracts they sign.
Regulation of real estate brokers, therefore, does not merely involve controlling who can practice this profession. The Real Estate Brokerage Act also establishes specific rules governing how a broker must conduct themselves toward their clients.
Are you planning to buy or sell a property through a real estate agency? Let our attorneys review your reservation agreement, brokerage agreement, or purchase agreement and point out any provisions that are disadvantageous to you.
A developer or real estate agent often presents a person with a fait accompli, refuses to negotiate at all, and does nothing to make the purchase of an apartment easier. A buyer who otherwise proudly protects their rights when shopping for electronics and doesn’t trust anything they haven’t measured themselves suddenly finds themselves at a loss, simply nodding along to the real estate agent’s demands. They don’t hesitate to rely on the agent completely and sign all the documents presented to them. They view the real estate agent—along with the property itself—as a necessary evil. They can already picture themselves grilling on the terrace of their new apartment and want to get the legal “paperwork” over with quickly and painlessly. In fact, they aren’t interested in any of it and rely on the agent, whom they view as a real estate “expert.”
A major change was brought about by the Real Estate Brokerage Act, which took effect in 2020. Thanks to this law, real estate brokerage has been reclassified as a regulated trade, and brokers must meet professional qualification requirements. This does not mean, however, that every real estate agent must have a degree in law or economics. Professional competence can be demonstrated in several ways prescribed by law, such as through appropriate education and experience or by obtaining the relevant professional certification.
Regulation does not apply only to entry into the profession. The Real Estate Brokerage Act imposes a number of specific obligations on brokers. In particular, a real estate broker must:
The law thus provides the buyer with significantly greater protection than in the past, when virtually anyone could act as a real estate broker without any specific requirements.
Although the term “license” is commonly used in reference to real estate agents, Czech law more precisely refers to a trade license and professional qualifications. Real estate brokerage is a regulated trade. A broker must therefore meet the qualification requirements set by law; however, this is not a separate “license” similar to those required for certain regulated financial professions, for example.
A real estate broker must be insured at all times while conducting business in case they cause harm to a client during the course of real estate brokerage. The basic statutory limit for insurance coverage is at least 1,750,000 CZK per insured event and 3,500,000 CZK in the event of multiple insured events occurring within a single year.
The real estate broker must submit proof of the insurance policy to the Ministry of Regional Development within 10 business days of its conclusion.
We provide comprehensive legal services related tothe purchase or sale of real estate, including the reservation agreement and escrow of the purchase price. We can also assist with the land registry and taxes. We can handle everything within 48 hours, even when purchasing from a developer.
Do you have a reservation or brokerage agreement in front of you and aren’t sure what obligations it actually imposes on you? Send it to us for a legal review. We’ll determine whether it complies with the law and whether it contains any terms that could unnecessarily cost you money.
A 2026 Supreme Court decision illustrates the practical significance of these new rules. The court addressed a case in which a reservation agreement imposed an obligation on the consumer to enter into a purchase agreement, and the real estate agency was to receive an agreed-upon amount if the consumer failed to do so.
The Supreme Court noted that the Real Estate Brokerage Act does not allow a broker to impose an obligation on a consumer to enter into a real estate contract. If a penalty is attached to such an impermissible obligation, the penalty itself may also be invalid. Simply labeling a document asa “reservation agreement”is therefore not decisive in and of itself. What matters is what obligations it actually imposes on you. That is why it makes sense to have the contract reviewed before paying the reservation fee.
The regulations established minimum qualification and insurance requirements for real estate brokerage and set clearer boundaries for the relationship between the broker and the client. However, this does not mean that every transaction brokered by a regulated agent is automatically safe. The law sets minimum standards for professional conduct, but it does not replace a legal review of a specific purchase, reservation, or brokerage agreement.
Even today’s regulations do not—and cannot—resolve all the problems in the relationship between the seller, the real estate agent, and the buyer. After all, if people continue to exercise greater care when selecting vegetables at the supermarket or beer from a microbrewery than when purchasing an apartment where they intend to spend the rest of their lives, then regulations on real estate agents will not be of much help to them. The law cannot read a contract for a person or assess whether its specific terms are advantageous to them.
Buyers, in particular, should therefore not automatically assume that a real estate agent represents their interests. It always depends on who the agent has a contractual relationship with and what obligations arise from that relationship.
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The regulation of real estate agents today is primarily based on the Real Estate Brokerage Act. Real estate brokerage is a regulated trade; agents must meet professional qualification requirements and have mandatory insurance in place. The law also sets forth rules governing brokerage agreements, disclosure obligations, commissions, exclusive representation, and the escrow of funds. Nevertheless, even a regulated real estate agent cannot replace an independent attorney who defends your specific interests and reviews the specific terms of the contract before you sign it.
The primary regulation is the Real Estate Brokerage Act. Among other things, it governs contracts with clients, disclosure requirements, insurance, commissions, and rules for holding funds in escrow.
Czech law does not recognize a separate “real estate broker’s license.” Real estate brokerage is a regulated trade, and anyone who engages in it must meet the established professional qualification requirements.
A broker must meet professional qualification requirements, be insured, and comply with rules regarding, for example, written brokerage agreements, client disclosure, commissions, and the handling of funds held in escrow.
Yes. A real estate broker must maintain liability insurance covering damage caused in the course of real estate brokerage activities for the entire duration of their practice.
If you are a consumer, a real estate brokerage agreement cannot require you to enter into a real estate contract or a preliminary real estate contract.
The law significantly restricts the option of escrow through a real estate broker. A broker may not routinely offer this service; under conditions specified by law, the broker may provide it only upon a written request from the interested party on a separate document.
We provide comprehensive legal services related to the purchase or sale of real estate, including reservation agreements and escrow services. We can also assist with land registry and tax matters. We can handle everything within 48 hours, even when purchasing from a developer.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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