The Act on Real Estate Brokering has come into force

Act No. 39/2020 Sb. dated 19 December 2019 on Real Estate Brokering and on amendments to related acts (Act on Real Estate Brokering) was published in the Collection of Laws on 17 February 2020.

This is a completely new legal regulation, which regulates the terms for business activities conducted by real estate brokers. With regard to the absence of any requirements for the professional qualification of real estate brokers, the absence of compulsory liability insurance for real estate brokers and the lack of specific regulation of brokering contracts specifically for the purposes of real estate brokering, the previous legislation failed to guarantee sufficient protection of clients. The subject of regulation now includes the terms for provision of financial custody for the purpose of assuring performance of the real estate contract, among others.