Deadlines for fulfilling the obligations under the Real Estate Brokerage Services Act postponed

We have previously informed you about the significant dates for fulfilling obligations given by Act No. 39/2020 Coll., On Real Estate Brokerage (hereinafter referred to as the "Real Estate Brokerage Act") HERE. However, due to the COVID-19 pandemic, the deadlines for fulfilling some of the obligations has been postponed. We would therefore like to inform you about the adopted changes:

 1) An entrepreneur who was, before the Real Estate Brokerage Act became effective, providing real estate brokerage services within the scope of unqualified notifiable trade (in Czech language “ohlašovací živnost volná”), was supposed to register his professional notifiable trade (in Czech language “ohlašovací živnost vázaná”) of "Real Estate Brokerage" as of 3 September 2020. By an amendment of the respective provision, which was adopted in connection with the COVID-19 pandemic, made by Act No. 190/2020 Coll., the new deadline for fulfilling this obligation was set to 3 March 2021;

 2) The entrepreneur is still obliged to ensure that the real estate brokerage services will be carried out only by natural persons fulfilling professional competence requirements specified in Annex No. 5 to Act No. 455/1991 Coll., Trade Licensing Act. This obligation must be fulfilled by 3 March 2022, i.e. within 2 years from the Real Estate Brokerage Act became effective;

 3) Finally, pursuant to Section 7 of the Real Estate Brokerage Act, the entrepreneur was initially obliged to be insured against damage caused by his activities as of 3 May 2020 and was also obliged to submit his insurance agreement to the Ministry for Regional Development within 10 days of its execution. However, during the first wave of COVID-19, the Ministry for Regional Development stated that it would tolerate the execution of an insurance agreement with a later date and would not apply any sanctions. This tolerance period was set by the Ministry to 22 June 2020 and then further extended until 14 July 2020. Therefore, if you have not yet executed an insurance agreement pursuant to Section 7 of the Real Estate Brokerage Act, we recommend fulfilling this obligation as soon as possible.