The profession of real estate agent is a regulated trade as of today

Prague - The profession of a real estate agent is, as of today, a regulated trade with requirements for professional qualifications. Until now, it was an unregulated trade that practically anyone could pursue. A new law on real estate brokerage, which has been prepared by the Ministry for Regional Development for eight years, comes into effect. Its main goal is to improve the functioning of the real estate market and protect clients of real estate agencies.

The law provides five options for practicing the profession. The first is a university degree in legal, economic, construction, or other relevant fields. The second is any other university, higher vocational, or secondary education. In this category, three years of experience in the field are required. Furthermore, there are international recognition or a bachelor's degree together with an MBA in real estate and one year of practice. Regardless of education, passing a professional exam is sufficient.

According to the MMR, real estate brokers have six months to submit a request to change from an unregulated to a regulated trade, that is, to provide proof of education, experience, or passing an exam. Those entering the field must present these documents immediately when applying.

Real estate agencies will now be able to provide escrow services exclusively upon written request from the client and on special accounts. They will also have the right to offer escrow services to clients from banks, foreign banks, notaries, attorneys, or in connection with enforcement and other court proceedings, also through an executor.

According to some analysts, the anticipated reduction in the number of real estate agents will increase their service fees. However, according to the Minister for Regional Development Klára Dostálová (for ANO), this is unlikely to happen. She anticipates that mainly the so-called garage agents, who do not practice it as a main profession, will disappear from the market.

The number of residents per real estate agent in the Czech Republic is about half of the European Union average. In the Czech Republic, it is 909 people per agent, with the EU average being 1653. The least is in Luxembourg (567), the most in Greece (4126). In the Czech Republic, the number of residents per real estate agent is the fourth lowest in EU countries. This is evident from the latest available data from the European statistical office Eurostat for the year 2017.