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Legislation draft on real estate brokerage services

Chamber of Deputies of the Czech Republic has approved the legislation draft of Act on Real Estate brokerage services on 8th of November 2019. The presumed effectiveness of the proposed Act on Real Estate brokerage service remained unchanged since the governmental bill and is set out to be on 1 January 2020. Nonetheless, pursuant to the legislation draft some real estate brokerages have longer period for compliance of obligations that are more administratively or technically complicated.

This Act is supposed to provide the market of real estate brokerage service with complex rules that are supposed to help creating more transparent and foreseeable environment within the real estate transactions, such as introducing new professional trade which shall require professional real estate brokerage skills, higher consumer protection by setting out a written form of the real estate brokerage contracts, compulsory insurance of the brokers, information duty and strict rules for the financial escrow services ect.

The legislation draft was submitted to the senate on 18th of November 2019 and it is not yet clear whether the legislation process will be successfully completed until the stipulated effectiveness.

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