Real estate
Czech real estate to be regulated
As reported by "Radio Prague"<\/a>, the annual turnover of the Czech real estate market is 5 billion crowns (182 million euros). Moreover, half of the transactions are carried out with the help of brokers, rather than realtors working in firms. The Czech Republic has slightly fewer apartment brokers than the record-holding countries – France, Italy or Spain. However, in terms of the number of such intermediaries per capita, the record is held by the Czech Republic – 1 per every 700 citizens. At the same time, no mandatory rules are provided for the army of brokers and realtors. The Ministry of Regional Development now seeks to correct the mistake.<\/p>
"Only three states in Europe have not taken care of the rules for broker activities in the real estate sector. The Czech Republic in this case is in the company of Romania and Latvia. The initiative of the regional development department deserves only praise. The rules will primarily make life easier for consumers, as well as for all honest traders. Currently, almost everyone is engaged in real estate trading in the Czech Republic. There are 15 thousand registered brokers on the lists, which cannot be considered normal," comments Hanuš Němeček, executive director of the real estate firm RE\/MAX.<\/p>
As emphasized by the president of the Association of Real Estate Agencies, Jaroslav Novotný, there are more and more citizens operating in this market for whom selling apartments and houses is just a way to earn extra income. If you have a business license, you can calmly engage in real estate sales. This type of activity in the Czech Republic has no professional connection to a diploma obtained.<\/p>
"A fairly large number of people are operating in this field, working with large sums of money and a significant amount of property. We believe that such people should undergo professional training and insure themselves so as not to cause damage to their clients due to insufficient knowledge of this type of activity."<\/p>
The Ministry of Regional Development intends to ensure that real estate trading ceases to be a free type of entrepreneurship. The department will strive to introduce mandatory insurance for the activities of brokers and realtors in case of collapse. Intermediaries, according to the ministry's plan, will also be required to keep the financial funds of their clients involved in the purchase\/sale process in special bank accounts. This is also a measure in case of bankruptcy. Special requirements for drafting contracts should also be developed.<\/p>
