Real estate agents will get more time to prove their expertise

Prague - The deadline for real estate agents to demonstrate their qualifications will be extended by six months until the beginning of March next year. The government amendment on real estate mediation, which stipulates this, was signed today by President Miloš Zeman. The Castle informed about his signature. Some agents are currently unable to take exams due to measures against the spread of the new coronavirus. Intermediaries need these exams to convert their business from a free trade to a regulated trade.

"Currently, it is not possible to hold exams, the law does not allow an online form of tests," states the explanatory memorandum. The exams have written, individual oral, and practical parts and take between three to five hours. The Ministry for Regional Development considers them the most transparent way to prove qualification.

The draft also relaxes conditions for potential new intermediaries who would operate under large real estate agencies. For six months from the effectiveness of the law, they could operate based on free trade; however, they would not be allowed to provide money escrow services.

According to the current law, the intermediary has six months from the effective date of the regulation on March 3rd to apply for a change from free to regulated trade, i.e., to provide proof of education, experience, or passing the exam, which means until September 3rd. The amendment extends this period by six to 12 months, i.e., until March 3rd, 2021. If a real estate agent does not prove their qualification by the current state and continues to operate after September 3rd, they could commit the crime of unauthorized entrepreneurship, states the explanatory memorandum.

For practicing the profession, the law provides five options for qualifications. The first is university education in legal, economic, construction, or other relevant fields. The second is another university, higher vocational, or secondary education. In this category, three years of experience in the field are required. Furthermore, it is international recognition or a bachelor's degree together with an MBA in real estate and one year of experience. Agents who do not meet these conditions must pass an exam.

The number of inhabitants per real estate agent in the Czech Republic is approximately half the average of the European Union. In the Czech Republic, there are 909 people per agent, while the EU average is 1,653. This is based on the latest available data from the European Statistical Office for the year 2017.