The option for proving expertise among real estate agents is shifting

Prague - The deadline by which real estate agents must demonstrate their expertise for their business according to the new law has been postponed by the government today by four months to January 3, 2021. The reason is that it is currently impossible to take exams due to measures against the spread of the coronavirus. The Ministry of Regional Development (MMR), which prepared the law on real estate brokerage, informed ČTK of this. MMR expects that it will be possible to take the exams in the second half of the year.

"The profession of real estate brokers is currently in a doubly complicated situation. The state of emergency complicates the situation not only by limiting business as such, with transactions almost stagnating, but it will soon prevent many agents from fulfilling the condition of operating this profession," stated the Minister for Regional Development Klára Dostálová (for ANO).

The new law on real estate brokerage is effective from March 3. The main change compared to the previous situation is that the profession of real estate broker is a regulated profession with requirements for professional qualifications. Until now, it was an unregulated profession, which meant that practically anyone could perform it. According to MMR, the main goal of the law is to improve the functioning of the real estate market and protect clients of real estate agencies.

According to the original proposal, the broker had six months to submit a request to change from an unregulated to a regulated profession, which includes proving education, experience, or passing an exam. The law provides for five options for performing the profession. The first is a university degree in legal, economic, construction, or other relevant fields. The second is any other higher education, higher vocational, or secondary education. In this category, three years of experience in the field are required. Furthermore, there is international recognition or a bachelor's degree along with an MBA in real estate and one year of practice. Regardless of education, passing a professional exam is sufficient. Since taking exams is not possible due to current measures, MMR has moved this deadline.

"We want to help brokers so that they do not have to stress unnecessarily more in the current difficult situation," added Dostálová. According to her, the proposal will be discussed this week in a shortened procedure in the Chamber of Deputies and then in the Senate so that the amendment to the law can take effect as early as April.

According to the new law, real estate agencies will be able to provide money escrow only upon written request from the client and in special accounts. They will also have the right to offer money escrow to clients through banks, foreign banks, notaries, lawyers, or in connection with enforcement and other court proceedings through an executor.

According to some analysts, the expected reduction in the number of real estate agents will lead to an increase in their service costs. According to the Minister for Regional Development Klára Dostálová (for ANO), such an occurrence is unlikely. She expects that the market will mainly get rid of so-called garage brokers who do not do it as their main profession.

The number of residents per real estate agent in the Czech Republic is about half of the EU average. In the Czech Republic, there are 909 people per agent, while the EU average is 1653. The least is in Luxembourg (567) and 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 derived from the latest available data from the European statistical office Eurostat for the year 2017.