Act No. 39 / 2020 Coll.
Act on real estate intermediation and on the amendment of related laws (Act on real estate intermediation)
Valid
Law
Effective from 03.03.2020
39
THE LAW
of 19 December 2019
on real estate intermediation and the amendment of related laws (Real Estate Intermediation Act)
Parliament has decided on this law of the Czech Republic:
REALITY DISTRIBUTION
Subject matter
This law regulates certain conditions for the provision of real estate intermediation and certain rights and obligations relating thereto.
Definition of certain terms
For the purposes of this Act:
(a) by real estate intermediation, an activity designed to facilitate the conclusion of a real estate contract;
(b) the realtor who provides real estate intermediation as an entrepreneur;
(c) a contract on real estate intermediation which the estate agent undertakes to arrange for the buyer to conclude the real estate contract;
(d) a real estate contract
1. ownership of the immovable property; or
2. rights which it contains or are linked to the authorisation to use or enjoy a immovable property, an apartment or a non-residential space, unless it is an accommodation.
(1) Real estate brokerage always involves finding out who is interested in concluding a real estate contract with a candidate.
(2) Real estate intermediation generally includes:
(a) the provision of advertising services;
(b) the assessment of the real estate situation and the processing of the draft offer price;
(c) processing of the marketing of the real estate;
(d) providing for a real estate inspection;
(e) the provision of construction technical documentation related to real estate;
(f) mediation of the provision of legal services,
(g) the provision of custody to ensure the performance of the real estate contract.
(1) A real estate agent is not entitled to offer in the context of an intermediary
(a) custody to ensure the performance of the real estate contract;
(b) brokering the provision of such custody by someone other than a bank, a foreign bank operating in the Czech Republic through a branch, notary, lawyer or in connection with the execution, judicial or other proceedings of a judicial executor.
(2) At the request of the interested party in writing on a separate instrument, the estate agent may provide the deposit of funds in order to ensure the performance of the property contract, provided that:
(a) the custody agreement is in writing;
(b) an account with a bank, a foreign bank operating in the Czech Republic through a branch or savings and credit cooperative (hereinafter the "bank") on which the funds are deposited is
1. set up for each custodian as a separate custody account,
2. kept in the name of a real estate agent registered in the public register,
(c) inform the bank, in accordance with the Bank Act, that the holder of the funds stored is a third party;
(d) each custody shall be recorded in the custody register which shall include:
1. identification details of the custodian and the consignee, if the custodian or the consignee is a natural person, all the names and surnames, the birth number and, if not assigned, the date of birth, the place of birth, sex, permanent or other residence and citizenship; if they are an undertaking natural person, including its business firm, distinguishing the supplement or other designation, place of business and person identification number; where the custodian or the consignee is represented, also the following information concerning his or her acting representative; where the legal person is a commercial firm or a name including a distinctive supplement or another designation, registered office, person identification number or similar number assigned abroad; in the case of a natural person who is a member of its statutory body, data to identify and verify its identity; where applicable, information on the representative of a legal person who has acted in the present case and where the trustee is the trustee of the trust fund's designation and identification details of its trustee, manager or person in a similar position;
2. data on the amount of funds and the monetary unit;
3. the date of receipt of the funds for safekeeping;
4. an indication of the duration of the storage period and, where applicable, the conditions laid down by the estate agent for the issue of the money from the custody of the custodian or the payee, and the way in which such conditions are demonstrated to the real estate agent;
5. the identification of the account or accounts in which the funds are to be issued from the custody of the payee and the identification details of the person who owns it, if not the payee,
6. the date of issue of the funds to the custodian or recipient.
(3) Acceptance of funds into custody and their release from custody can only be carried out without cash; otherwise the funds cannot be transferred.
(4) At the same time as the provision of the first deposit of funds in order to ensure the performance of the real estate contract, the estate agent shall inform the municipal business office accordingly.
(5) The Realtor is not entitled to use the funds in the custody account in any way other than in accordance with the purpose of the real estate contract.
(1) The realtor must be fair (1). A person who has been convicted of a crime committed intentionally or for a crime committed negligent in connection with the provision of real estate mediation shall not be deemed to be righteous for the purposes of this law if he is not regarded as having been convicted.
(2) Where the real estate agent is a legal person, the beneficial owner of the real estate agent must be a legal person, under the law governing the registration of beneficial owners (hereinafter the "beneficial owner ') and a natural person who is a member of its statutory body, a representative of a legal person in that body or in a similar position as a member of the statutory body.
(3) The natural person referred to in paragraph 2 shall be required to notify the founders of the legal person or authority which is entitled to establish him or her in accordance with the requirement of integrity prior to his or her establishment. If the requirement of integrity ceases to be fulfilled after its establishment, the natural person shall, without undue delay, notify the realtor and, where appropriate, the person empowered to perform the duties.
(4) The Realtor shall, without undue delay, remove a natural person who does not fulfil the requirement of integrity from his post as a member of the statutory body or from his / her position as a member of the statutory body as soon as he / she becomes aware of this, unless his / her function or position has ceased otherwise.
(5) The legal person who is a member of the statutory body of the estate agent shall withdraw the authorisation without undue delay to the natural person who represents him in the performance of his duties as soon as he becomes aware that he has ceased to comply with the requirement of integrity and shall assign another natural person to represent him. If a legal person fails to comply with this obligation, the estate agent shall withdraw it from office without undue delay after it becomes aware of this fact.
(1) The integrity is demonstrated for citizens of the Czech Republic by an extract from the register of the Register of Penalties and for persons who are citizens of another Member State of the European Union, the documents provided for in Paragraph 46 (1) (a) of the Trade Code. For persons who are not citizens of the Czech Republic or of another Member State of the European Union, proof of integrity shall be provided under Paragraph 46 (1) (b) of the Trade Code and an extract from the Register of Penalties, unless the persons allowed to reside on the territory of the Czech Republic are: they show integrity as well as citizens of the Czech Republic.
(2) For the purposes of the assessment of integrity, the trade office shall be entitled to request a copy of the final decision from the court. Where the decision does not contain the facts relevant for the assessment of integrity, the trade office shall be entitled to consult those parts of the criminal file which contain those facts. Where a judgment has been given by a court of a foreign State, the trade office shall be entitled to require the person referred to in paragraph 1 to submit a second copy of the final judgment of the court.
(3) In order to establish compliance with the obligations under § 5 (2) The Ministry of Justice shall allow the Trade Office to obtain, in a manner that allows remote access from the registration of beneficial owners under the law governing the registration of beneficial owners (hereinafter the "registration of beneficial owners'), a complete extract of the valid data and data which has been deleted without compensation or with the replacement of new data under the same law. A real estate intermediary who is a foreign legal person shall be invited by the trade office to submit an extract of the foreign registration of the beneficial owners or, in the absence of such a record, to submit an affidavit stating the identification details of all its beneficial owners. The real estate agent shall, at the request of the Trade Office, provide the persons referred to in Article 5 (2) with proof of the documents referred to in Article 46 (1) (a) or (b) of the Trade Code, with the exception of an extract from the Register of Penalties, and a copy of the final judgment of the court of a foreign State referred to in paragraph 2.
Real estate agent insurance services
(1) The real estate agent must be insured for the entire duration of his activity in the event of an obligation to compensate candidates for the damage caused by the performance of the real estate brokerage, with an insurance performance limit of at least CZK 1 750 000 per insurance event and at least CZK 3 500 000 in the event of multiple claims in one year.
(2) The insurance referred to in paragraph 1 shall be arranged with an insurer who is entitled to operate such insurance within the territory of the Czech Republic under the law governing the insurance sector and must be arranged so that the participation, if agreed, does not exceed CZK 5 000 or 1% of the amount of insurance benefits.
(3) The insurer may terminate compulsory insurance under paragraph 1 only for the reasons set out in the provisions of the Civil Code governing the insurance contract.
(4) Within 10 working days of the date of conclusion of the insurance contract, the real estate agent shall submit a copy or an officially certified copy of that contract to the Ministry of Regional Development (hereinafter referred to as "Ministry"). Similarly, the real estate agent shall proceed with any change in the insurance contract which affects the change in the limit of the insurance premiums or the amount of the share agreed and shall inform the Ministry of this fact in the event of termination or withdrawal of the insurance contract.
(5) The insurance performance limits referred to in paragraph 1 shall be reduced to 50% for real estate agents who, by virtue of a contract concluded in writing with another legal person who is a real estate agent, are entitled to provide real estate intermediation only on behalf of such legal person or on their behalf with the unmistakable use of the trading name or brand of such legal person.
(1) The realtor shall submit to the interested parties, upon request, an insurance policy confirming the conclusion of the insurance contract pursuant to Section 7.
(2) The realtor referred to in Article 7 (5) shall submit to the interested party, upon request, a contract concluded with the realtor whose name, or the unmistakable use of his commercial name or brand, he is entitled to provide real estate mediation.
Real estate brokerage agreement
(1) The real estate agent provides real estate intermediation under the real estate agent contract.
(2) The Real Estate Agreement requires written form. Only interested parties may object to the nullity of the contract for lack of form.
(1) The Real Estate Intermediate Agreement also contains:
(a) an indication of the object of the transfer, or the object of use or ingestion;
(b) the amount of the purchase price, rent or other remuneration, or the method of determining them, if the real estate contract is repayable;
(c) the amount of the commission or the method of determining it.
(2) Where any of the information referred to in paragraph 1 (a) or (b) is not known when concluding a real estate contract, it shall be agreed at least in a general manner.
(3) If the real estate contract does not contain the data referred to in paragraph 1, it shall be invalid. Only interested parties may object.
(1) The real estate agent shall forward to the interested party the acquisition of the property right in the real estate case, or the right which it contains or with which the right to use or enjoy the immovable property, an apartment or a non-residential space, at the latest on the date of the conclusion of the real estate contract, an extract from the public register for the subject of the real estate mediation, provided that the immovable property of which that article is part is registered. Where the object of the transfer, or the object of use or consumption is not entered as a unit on the public list, the estate agent shall transmit to the interested party an extract from the public list in which the immovable item of which that article is part is entered.
(2) The extract from the public list referred to in paragraph 1 shall show the status recorded in that list not more than 3 working days before the date of conclusion of the real estate contract. This extract may also be obtained by remote access and transferred to the real estate brokerage contract by simple printing.
(3) If the realtor does not transmit the extract referred to in paragraph 1 to the candidate, the candidate shall be entitled to withdraw from the real estate contract within 14 days of the date of its conclusion.
Information obligation
(1) The real estate agent is obliged to provide the person concerned with the acquisition of the property right in the real estate case, or the right which it contains or is associated with the authorisation to use or enjoy the immovable property, apartment or non-residential space, information on the specific defects and limitations relating to the object of the transfer, or the use or consumption of which the real estate agent was aware or should have known about it because of its professional capacity.
(2) Where the real estate brokerage contract contains an arrangement referred to in Article 10 (2), the estate agent shall provide the interested party with information on the specific defects and restrictions relating to the subject of the transfer, or the subject of use or ingestion referred to in paragraph 1, and provide him with an extract from the public list referred to in Article 11 (1) no later than 14 days from the date on which the particular object of the transfer is known to the candidate and the real estate agent, or the subject of use or consumption.
(3) The realtor shall provide the interested party with information on the amount of the commission or the manner in which it is to be determined where it has been agreed in a real estate contract concluded between the realtor and a third party on the same subject of the transfer or use or consumption.
(4) Where the estate agent does not supply the interested party with the information referred to in paragraphs 1 and 3 at the latest at the time of the conclusion of the real estate contract or the information referred to in paragraph 2 at the latest within 14 days of the date on which the specific object of the transfer is known to the interested party or the real estate intermediary, the interested party may withdraw from the real estate contract.
If the interested party has stated that he has been familiar with the documents referred to in the Real Estate Agreement and there is serious doubt as to whether this has actually happened, this must be demonstrated by the real estate agent.
In a real estate contract, the consumer may not impose an obligation to conclude a real estate contract or a contract to conclude a future real estate contract.
A real estate contract shall not be included in the same instrument as the real estate contract. Only interested parties may object. The objection of invalidity shall be without prejudice to the rights and obligations of the Contracting Parties under other contracts contained in the instrument referred to in the first sentence.
A note or a cheque may not be used to satisfy or ensure the fulfilment of a debt arising from a real estate brokerage contract concluded between a real estate intermediary and a consumer interested party.
Exclusive real estate intermediation
(1) Exclusive real estate intermediation means an arrangement between a real estate agent and an interested party made with regard to a particular object of the transfer, or an object of use or consumption consisting of a restriction on the right of the interested party to conclude a real estate mediation contract on the same object of the transfer, or an object of use or use with another real estate intermediary, as well as the right of the interested party to conclude a real estate contract without the involvement of the real estate agent.
(2) The exclusive real estate arrangement may take effect at the earliest on the date of conclusion of the real estate contract between the same parties and, in respect of the same object of the transfer, or the subject of use or consumption.
(3) Paragraph 9 (2) and (13) shall apply mutatis mutandis to the exclusive real estate mediation arrangement not covered by the real estate mediation contract.
(4) Exclusive real estate mediation may be negotiated with the consumer only for a fixed period, but not more than 6 months. That period may be extended repeatedly. The extension may not be negotiated less than 30 days before the date of expiry of the agreed period.
Termination
If an indefinite period has been agreed with the consumer, the period of notice may not exceed 1 month.
Commissions
(1) The commission shall be payable at the earliest on the date of conclusion of the real estate contract, unless otherwise specified.
(2) An arrangement for the maturity of the commission to take place before the date of conclusion of the real estate contract or before the fulfilment of the postponement conditions for the effectiveness of the real estate contract may only be made if the real estate brokerage contract contains an indication that the maturity of the commission is not linked to the conclusion of the real estate contract or to the fulfilment of the postponement conditions for the effectiveness of the real estate contract. In such cases, the maturity of the commission may first be linked to the provision of an opportunity for the interested party to conclude a real estate contract.
(3) If an advance payment on a commission is agreed with the consumer, it shall not be more than two thirds of the agreed commission.
(4) If the contract to which the contract was concluded was subject to the creation of a real estate agent's right to commission, due to failure to act, error or failure to provide adequate synergies between the real estate agent and the termination of the obligation under the real estate contract, the real estate agent does not have the right to require a commission from the consumer.
Control
(1) Control of compliance with the obligations laid down in Section 5 shall be exercised by the municipal trade authorities. The Trade Union Office shall be entitled to obtain an extract from the record of the Register of Penalties under the Criminal Register Act. An application for an extract from the Register of Penalties and an extract from the Register of Penalties shall be sent in electronic form in a way enabling remote access.
(2) Control of compliance with the obligations laid down in Section 4 shall be carried out by the municipal business offices.
(3) The Ministry shall monitor compliance with the obligations under Article 7 (1), (2) and (4).
(4) The Trade Licensing Office shall revoke the trade authorisation to a real estate agent who shall not ensure that its beneficial owner is a person meeting the conditions of integrity referred to in Article 5 (1), or shall not revoke a natural person pursuant to Article 5 (4) or a legal person under the second sentence of Article 5 (5).
Transfers
(1) A legal person or an undertaking natural person commits an offence as a real estate agent by:
(a) fails to fulfil any of the obligations under Paragraph 4;
(b) is not insured under Article 7 (1) or (2); or
(c) fails to fulfil any of the obligations under Article 7 (4).
(2) A fine may be imposed for an offence
(a) up to 500 000 CZK if the offence referred to in paragraph 1 (a) is committed,
(b) up to 1 000 000 CZK if the offence referred to in paragraph 1 (b) is committed,
(c) up to CZK 100,000 if it is an offence referred to in paragraph 1 (c).
Dispute dealing
The transfers referred to in Article 21 (1) (a) shall be discussed by the municipal trade authorities. The transfers provided for in Article 21 (1) (b) and (c) are discussed by the Ministry.
Transitional provisions
1. The legal circumstances arising before the date of entry into force of this Act, as well as the rights and obligations arising therefrom, including the rights and obligations arising from the infringement of contracts the purpose of which is real estate mediation, concluded before the date of entry into force of this Act, shall be governed by the existing legislation.
2. An entrepreneur who, prior to the date of entry into force of this Act, provided the real estate brokerage in the course of the business of the reporting free "Production, trade and services not listed in Annexes 1 to 3 to the Commercial Act" listed in Annex 4 to Act No. 455 / 1991 Coll., on the business business business (Trade Act), as effective before the date of entry into force of this Act, shall comply with the condition laid down in Sections 7 (1) and (2) of that Act at the latest 2 months after the date of entry into force of that Act.
3. An entrepreneur who is a natural person and who, on the date of the entry into force of Act No. 39 / 2020 Coll., on real estate intermediation and on the amendment of related laws (Real Estate Intermediate Act), was not entitled to practice real estate intermediation on the basis of the right to conduct a business activity free of "Production, Trade and Services not listed in Annexes 1 to 3 to the Real Estate Act," shall be entitled to carry out real estate intermediation activities on the basis of a real estate agent only on behalf of such a person or on behalf of such non-fungible business name, but not to demonstrate the fulfilment of the conditions of professional competence for the pursuit of a business linked to another law (3), but exclusively on the basis of a contract concluded in writing with a person who is a real estate agent, and only on behalf of such a non-fungible business name or business name of such a business name, but not listed in Annex No. 1 to the Commercial Act No. 3).
4. An entity providing real estate intermediation as referred to in point 3 shall not be entitled to provide custody of funds in order to ensure the performance of the real estate contract, even under the conditions set out in Section 4 (2). If this entrepreneur provides the deposit of funds in accordance with the first sentence, he shall commit an offence for which a fine may be imposed up to the amount referred to in Paragraph 21 (2) (a) above.
Amendment of the Trade Act
Act No. 1 / 2006, Act No. 1 / 2006, Act No. 1 / 2006, Act No. 5 / 2006, Act No. 5 / 2006, Act No. 5 / 2006, Act No. 5 / 2006, Act No. 6 / 2006, Act No. 6 / 1999, Act No. 6 / 1999, Act No. 6 / 1999, Act No. 6 / 1996 Coll.
1. In Annex No 2 "LIABILITIES LIABILIVED 'in column 1, the following text is inserted after the trade" Activity of accounting advisors, keeping of accounts, keeping of tax records' in column 2:
"(a) higher education in a master's study programme in the field of education Law, Economic fields with a focus on economics, finance or marketing and trade or in the field of education Construction with a focus on building, preparation and implementation of buildings, or similar higher education obtained by a study in a university not in the field of education;
b) higher education in the Bachelor's Programme, 1 year of experience and completion of an internationally recognised course according to § 60a of Act No. 111 / 1998 Coll. with a focus on real estate organised at a state accredited institute,
(c) university, higher vocational or secondary education with a graduate examination and 3 years of experience in the field; or
(d) professional qualifications for the activity of a real estate agent under the Law on the Recognition of Result of Further Education *) '
and in column 3, the following text "*) of Act No. 179 / 2006 Coll., as amended, is inserted."
2. In Annex 4 "LIFE FREE ', the field of activity 58 reads as follows:
"58. Purchase, sale, administration and maintenance of real estate."
3. In Annex 5, "List of trades the performance of which the entrepreneur is obliged to ensure only by natural persons having competence and competence to carry out such activities', in column 1," Trade in pet animals', the new trade "Real estate 'is added for trade in pet animals,
in column 2, the following text is inserted:
"(a) higher education obtained in a master's study programme in the field of education Law, in the field of education Economic fields with a focus on economics, finance or marketing and trade or in the field of education Construction with a focus on building, preparation and implementation of buildings, or similar higher education obtained by a university not in the field of education;
(b) higher vocational or secondary education with a graduate examination and 1 year of experience in the field;
(c) professional qualifications for the activity of a real estate agent under the Law on the Recognition of Result of Further Education *),
(d) proof of three years' experience in the field of independent employment (Section 420 of the Civil Code) or in the employment relationship; or
(e) proof of recognition of professional qualifications under special legislation * *) '
and in column 3, the following text is inserted:
"*) Act No. 179 / 2006 Coll., as amended
* *) Act No. 18 / 2004 Coll., as amended. "
Transitional provisions
1. An entrepreneur who has been authorised to provide real estate brokerage in the course of trade "Production, trade and services not listed in Annexes 1 to 3 to the Commercial Act 'before the date of entry into force of this Act and intends to continue to provide real estate brokerage shall, before the expiry of a period of 12 months from the date of entry into force of this Act, declare to the Trade and Real Estate Brokerage Office the" Real Estate Brokerage' and provide proof of the fulfilment of the conditions of professional competence for the operation of such tied business, otherwise the expiry of that period of its authorisation to provide real estate brokerage within the abovementioned trade. The acts carried out in accordance with the first sentence shall not be subject to an administrative fee.
2. The real estate intermediary is obliged to ensure that the obligations laid down in § 7 (6) of Act No. 455 / 1991 Coll., as amended by Act No. 356 / 1999 Coll., Act No. 167 / 2004 Coll., Act No. 130 / 2008 Coll. and Act No. 289 / 2017 Coll., no later than 2 years after the date of entry into force of the Act.
Amendment to the Banking Act
In Section 41e of Act No. 21 / 1992 Coll., on Banks, as amended by Act No. 16 / 1998 Coll., Act No. 165 / 1998 Coll., Act No. 319 / 2001 Coll., Act No. 126 / 2002 Coll., Act No. 433 / 2008 Coll., Act No. 156 / 2010 Coll. and Act No. 41 / 2011 Coll., at the end of the text of paragraph 6, the words "or the money received by a real estate intermediary in custody under the Real Estate Mediation Act 'are added.
EFFECTIVE
This Act shall take effect on 1 January 2020.
Vondracek v. r.
Zeman v. r.
Babiš v. r.
1) Directive (EU) 2015 / 849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing, amending Regulation (EU) No 648 / 2012 of the European Parliament and of the Council and repealing Directive 2005 / 60 / EC of the European Parliament and of the Council and Commission Directive 2006 / 70 / EC.
2) Annex No. 2 to Act No. 455 / 1991 Coll., on Business Business (Trade Act), as amended.
3) Annex 4 to Act No. 455 / 1991 Coll., on Business Business (Trade Act), as amended.
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Regulation Information
| Citation | Act No. 39 / 2020 Coll., on real estate intermediation and on the amendment of related laws (Act on real estate intermediation) |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 17.02.2020 |
|---|---|
| Effective from | 03.03.2020 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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