Real estate brokerage

Real estate brokerage is a regulated trade (Annex 2 to the Trade Licensing Act) for estate agents and agencies. It covers brokering the sale, purchase, lease and tenancy of real estate and requires both professional qualification and mandatory liability insurance under Act No. 39/2020 Coll.

Conditions for operating

General conditions under Section 6 of the Trade Licensing Act: full legal capacity and a clean criminal record. Medical fitness is not required.

Professional qualification under Section 24 and Annex 2 of the Trade Licensing Act (the governing provisions are Sections 6 to 8 and Section 24 of Act No. 455/1991 Coll.) – one of the options:
a) a university degree at master's level in the fields of education of Law, Economics with a focus on economics, finance or marketing and trade, or Civil Engineering with a focus on building construction or the preparation and implementation of construction works, or comparable university education (no practice required);
b) a university degree at bachelor's level + 1 year of practice;
c) university, higher professional or secondary education with a school-leaving (maturita) examination + 3 years of practice in the field;
d) a professional qualification for the activity of a real estate broker under Act No. 179/2006 Coll.

The professional qualification may also be documented through a responsible representative under Section 11 of the Trade Licensing Act.

Mandatory liability insurance for the performance of real estate brokerage under Section 7 of Act No. 39/2020 Coll.

Examples of activities

operating a real estate agency
brokering the sale of a flat or house
brokering the purchase of real estate for an interested party
brokering the lease or tenancy of real estate
advertising and marketing of the real estate on offer
finding a buyer or tenant for an owner
negotiations leading to the conclusion of a real estate contract
activity of an estate agent on a trade licence

What the real estate brokerage trade is and what it is for

Real estate brokerage is a regulated trade (Annex 2 to the Trade Licensing Act) that allows you to do business as an estate agent or to operate a real estate agency. Its essence is brokering the conclusion of a real estate contract between an interested party and a third person, typically in the sale, purchase, lease or tenancy of real estate, a flat or non-residential premises.

The activity is comprehensively governed by Act No. 39/2020 Coll., on real estate brokerage. It places stricter requirements on agents than before, when it was an unqualified (free) trade. The purpose is to protect clients who entrust the agent with one of the most valuable assets in their life.

What falls under this trade (and what does not)

Real estate brokerage covers in particular:

finding real estate for a party interested in buying or renting,
finding a buyer or tenant for an owner of real estate,
presentation, advertising and marketing of real estate,
negotiations leading to the conclusion of a purchase, lease or tenancy contract,
arranging related supporting documents (an extract from the land register, an offer).

Where are the boundaries? Drafting the purchase contract itself is the provision of legal services, which is reserved for an attorney (Act No. 85/1996 Coll.). Holding the purchase price in escrow is possible only under the strict conditions of Act No. 39/2020 Coll.; otherwise entrust it to an attorney, a notary or a bank. The valuation of real estate falls under the separate regulated trade "Property valuation", and brokering a housing loan requires authorisation under Act No. 257/2016 Coll. Real estate brokerage does not in itself entitle you to these follow-up activities.

Statutory conditions for obtaining the trade

You must meet two groups of conditions.

General conditions (Section 6 of the Trade Licensing Act): full legal capacity and a clean criminal record. Medical fitness is not required for this trade.

Professional qualification (Section 24 and Annex 2 of the Trade Licensing Act): according to the database of regulated activities you prove one of the options:

a) a university degree at master's level in the fields of education of Law, Economics with a focus on economics, finance or marketing and trade, or Civil Engineering with a focus on building construction or the preparation and implementation of construction works (or comparable university education) – no practice required;
b) a university degree at bachelor's level + 1 year of practice;
c) university, higher professional or secondary education with a school-leaving (maturita) examination + 3 years of practice in the field;
d) a professional qualification for the activity of a real estate broker under Act No. 179/2006 Coll.

The governing provisions are Sections 6 to 8 and Section 24 of Act No. 455/1991 Coll. If you do not meet the professional qualification yourself, you may appoint a responsible representative (Section 11 of the Trade Licensing Act) who documents the qualification on your behalf.

Mandatory insurance: under Section 7 of Act No. 39/2020 Coll. you must have arranged liability insurance for damage arising from the performance of real estate brokerage. You submit a copy (or an officially certified copy) of the insurance contract to the Ministry of Regional Development within 10 working days of the day of conclusion of that contract.

How to notify the trade step by step

Verify that you meet the general conditions and the professional qualification (or arrange a responsible representative).
Arrange liability insurance under Act No. 39/2020 Coll.
Fill in the Unified Registration Form (URF).
Submit the notification at any municipal Trade Licensing Office, online via the rzp.gov.cz portal, at a Czech POINT branch or via a data box.
Document your education or practice and pay the administrative fee.

The licence arises on the day of notification. The Trade Licensing Office enters you in the Trade Register and issues an extract within 5 working days. You can find the details in the guide How to start a trade.

Documents and fees

a completed Unified Registration Form,
proof of professional qualification (diploma, certificate, proof of practice or a professional qualification certificate),
for a responsible representative, their documents and consent,
the insurance contract for liability insurance (then send a copy to the Ministry of Regional Development),
an administrative fee of CZK 1,000 for the notification, or CZK 800 for electronic filing.

You do not document a clean criminal record by extract even for Czech citizens – the office verifies it itself.

Frequently asked questions

Is an unqualified (free) trade enough for real estate activity?

No. Since Act No. 39/2020 Coll. took effect, real estate brokerage is a regulated trade. You must document professional qualification and arrange liability insurance.

Do I need a university degree?

You do not. Secondary education with a school-leaving examination and 3 years of practice in the field is sufficient, or passing the professional qualification for a real estate broker under Act No. 179/2006 Coll.

What if I do not meet the qualification?

You may do business through a responsible representative under Section 11 of the Trade Licensing Act, who documents the professional qualification on your behalf.

What insurance do I need and where do I report it?

Liability insurance for the performance of real estate brokerage under Section 7 of Act No. 39/2020 Coll. Send a copy of the insurance contract to the Ministry of Regional Development within 10 working days of the day of conclusion of the insurance contract.

Can I, as an agent, draft purchase contracts?

Drafting a contract is a legal service reserved for attorneys. Cooperate with an attorney or a notary; arrange the escrow of the purchase price through them as well, or through a bank.