Since 2020, estate agency has also been regulated by law. Estate agency includes, in particular, assessing the condition of immovable property, drawing up a proposed offer price, organising viewings of immovable property, brokering legal services, and providing other services associated with the offering and conveyancing of immovable property. Only a ‘person of integrity’ may be an estate agent.
Estate agents are not generally authorised to offer escrow services to ensure that a real estate contract will be performed, nor can they arrange for escrow services to be provided by anyone other than a bank, a notary or a lawyer. If they do offer these services, they must satisfy several legal obligations, including the requirement:
- for a client’s request for escrow services to be submitted in writing as a separate document;
- to draw up a written escrow agreement with the client;
- to hold a separate escrow account at a bank;
- to inform the bank that funds held in escrow are owned by a third party;
- to make an entry of each escrow in the escrow register they keep.
Throughout the course of their activities, estate agents must have insurance covering the obligation to compensate clients for damage caused by estate agency with a limit of indemnity of at least CZK 1 750 000 per insured event and at least CZK 3 500 000 in case multiple insured events occur in one year.
Estate agents provide estate agency on the basis of a written estate agency contract, the particulars of which are laid down by law. In particular, the contract must specify the property that is the subject of conveyancing, the amount of the purchase price, the rent, and any fees, and the amount of commission, or the method used to determine this commission.