Buying property
Estate agent commission (provize realitní kanceláře)
In Czech: Provize realitní kanceláře
Estate agent commission (provize realitní kanceláře) is the fee an estate agency earns for arranging the sale or purchase of a property. Czech law does not set the amount, but the written brokerage contract must state it or how it is determined.
Also called: agent fee, brokerage fee, realtor commission, provize
What it means
Estate agent commission (provize realitní kanceláře) is the reward for brokerage: the agency or agent (makléř) finds a buyer, runs viewings, prepares documents and often the contracts too. It is usually paid only after a successful sale, on signing the purchase agreement or after the land register entry, depending on what was agreed.
Commission is paid by whoever signed the brokerage contract (smlouva o realitním zprostředkování) with the agency. Usually the seller hires the agency and the commission is built into the price; sometimes the agency also signs a contract with the buyer, and the listing then shows the price plus commission (+ provize).
How it works in the Czech Republic
Real estate brokerage is governed by Act No. 39/2020 Coll. The brokerage contract must be in writing (§ 9(2)) and must state the amount of commission or how it is determined, otherwise it is invalid (§ 10). The law sets no fixed amount or cap; it is a matter of agreement.
The agent must carry liability insurance with a limit of at least CZK 1,750,000 per insured event and CZK 3,500,000 for several events in one year (§ 7). By the day the contract is signed at the latest, the agent gives the client an extract from the public register (§ 11) and informs them of defects and restrictions recorded in public registers and of those the agent knew or should have known about (§ 12).
Commission is set as a fixed sum or a percentage of the price, and the contract should show whether it includes VAT (DPH). These rules come from the act as originally published; check whether later amendments changed anything.
Practical example
For example, a seller signs an exclusive contract with an agency for a commission of 4% of the price including VAT (an illustrative percentage). The flat sells for CZK 6,000,000 and the agency is paid from escrow once the buyer is entered in the land register. The buyer pays only the price; had the listing said + provize, the buyer would typically have signed their own contract with the agency and paid commission on top.
What to watch out for
- Check whether the commission is included in the advertised price or added on top; + provize means you pay more.
- Before signing, read what the commission is for, when it is due and whether it is refunded if the purchase fails.
- With an exclusive contract, check how long exclusivity lasts and the penalties for selling outside the agency.
- Confirm whether the commission is quoted with or without VAT.
Frequently asked questions
How much is estate agent commission in Czechia?
The law does not set it. It is agreed between the parties and the brokerage contract must state the amount or how it is determined, otherwise the contract is invalid.
Does the buyer have to pay commission?
Commission is paid by whoever signed a brokerage contract with the agency. If the agency offers you a contract as a buyer, weigh what you get for the fee.
Can an agreement with an agency be oral?
No. A real estate brokerage contract must be in writing.
Sources
Laws and official pages this text is based on (in Czech).