As reported by Vinegret.cz citing the portal Novinky, the document was developed by the Ministry of Regional Development. Its main goals are consumer protection and improving the quality of services provided.
Today, anyone can work as a real estate agent in the Czech Republic. It is a free type of business activity, and a license is not required to carry it out. The approved bill will change this.
To obtain a license, a person must have a higher education in law, economics, commerce, or construction, or secondary specialized education and three years of experience in the field. Those who do not meet these requirements will have to take a special exam on construction law, property valuation, and taxation.
In addition, every real estate agent will be required to have insurance in case their actions cause material damage to a client. The insurance amount will range from 1.75 to 3.5 million crowns. The Trade Licensing Office (živnostenský úřad) will be tasked with monitoring compliance with these requirements. Working without insurance carries a fine of up to 1 million crowns.
Another important innovation is that real estate agents will be required to disclose the amount of their commission to clients. Furthermore, agents will no longer be able to simultaneously take commissions from both the seller and the buyer.
The law came into effect on February 1, 2020. According to the latest data, there are currently over 14,000 real estate agents in the Czech Republic. Per capita, this is the highest figure in the entire European Union.