In the Czech Republic, there are the most real estate agents per capita in the EU

Prague - The Czech Republic has the highest number of real estate brokers per capita among all EU countries. A total of 14,500 real estate brokers operate in the country, meaning there is one broker for every 727 residents, which is significantly the lowest in the EU. Apart from the Czech Republic, only four other EU countries do not regulate the activities of real estate agents by law. This is based on data from the European Council of Real Estate Professions (CEPI).

The second lowest number of residents per real estate broker in EU countries is in Hungary (991), followed by Ireland (1088), Italy, and Finland (both 1089). Conversely, the highest number is in Germany (6694). Together with the Czech Republic, the activities of real estate brokers are not regulated yet in Romania, Spain, the Netherlands, and Latvia.

The Ministry of Regional Development (MMR) based its preparation of the legislative proposal aimed at regulating real estate brokers on these statistics. The government approved it last Monday.

"This situation is not normal. No one can be surprised that society wants the market to look different," stated Jan Borůvka, General Secretary of the Real Estate Association, for ČTK. "No one wants to take anyone's job away with the new law. But it is clear that if we have such a high number of people engaged in this profession, not all can be properly qualified. Consumers deserve protection. And at the same time, we protect ourselves. This will raise the level of our services, and consequently increase interest in them," Borůvka added.

The MMR proposal includes setting a requirement for professional competence directly in the real estate brokerage law. "Professional competence means a master's degree focusing on real estate activity, law, or property valuation, or a university education and one year of practice in real estate activity or secondary education with a school-leaving examination and three years of practice in the field," stated the MMR.

A real estate broker could also obtain professional qualification under the Act on Verification and Recognition of Further Education Results from 2006. Its goal is to allow citizens to have their actual knowledge and skills recognized regardless of how they acquired them (in school, through a course, in practice, self-study, etc.). To obtain a certificate, the applicant would have to pass an exam. This would be organized by a person authorized for real estate brokerage. Individuals who can prove their professional competence will be listed in a publicly accessible Register of Competent Persons at the MMR.

In drafting the legislative intention, the MMR also relied on the results of a survey conducted in June and July 2014. A total of 2284 respondents participated in the survey. When asked if there is a need to set rules for the performance of real estate brokers by a special law, 81.4% of consumers and 76.3% of real estate brokers answered positively.

Minister for Regional Development Karla Šlechtová (for ANO) plans to present the law regulating real estate brokers to the government for approval by the end of this year. "We anticipate the law to take effect no later than July 2017," the minister added.