Who pays the estate agent in Czechia? Not who you think, and not by law

Ask three people in Prague who pays the estate agent and you may get three answers: the seller, the buyer, both. All three can be right, because the law leaves it to the contract. Knowing that, and knowing what the broker is actually paid to do, saves a fair amount of friction, and occasionally a fair amount of money.

The confusion is worth a moment. A foreign buyer arriving from a market where custom fixes the payer assumes Czechia has a custom too. It has habits, but no rule, and a habit is exactly what a contract can overrule. The only reliable answer to "who pays?" is on page one of the brokerage agreement.

What a broker does

A real estate broker (realitní makléř) finds a counterparty for a property deal, arranges viewings, negotiates and often helps with paperwork. In Czech law the broker arranges an opportunity for the client to conclude a contract and is paid when it happens. The rules sit in the Civil Code's provisions on brokerage (zprostředkování).

The broker is not the lawyer for either party. Checking title, drafting the contract and holding the price are separate tasks. Some brokers sell them as packaged services, and those should be priced and understood separately. A broker who says "our lawyer will look at it" has told you whose lawyer it is, which is the question.

How commission works

Commission is earned when the contract between the client and a third party comes into being as a result of the broker's work. The amount is whatever the brokerage agreement says, a percentage of the price or a fixed sum. No national tariff fixes it, and it differs by firm, property and market. Compare quotes rather than assuming.

Traditionally the seller engages the broker and pays, since the seller has something to sell. Buyers can hire brokers to search for them, and then they pay. In some deals both sides pay. Whichever it is, the agreement should say so plainly, with the amount and whether VAT applies.

The brokerage agreement

Read it before signing. Four points matter most.

Exclusive or not. Under an exclusive agreement only that broker may market the property for a set time, and if you sell by other means in that period you may still owe the commission. A non-exclusive agreement lets you use several brokers, which often means each puts in less effort.

Duration and termination. Note how long it runs, how it ends, and what happens afterwards. Some agreements include a tail period: if a buyer introduced by the broker signs after expiry, the commission may still be due.

The payment trigger. Is it signing the purchase contract, registration at the land registry, or payment of the price? Make it explicit. A commission due on signing is payable before the buyer is the owner, which is a risk if the registry rejects the filing.

Costs and marketing. Check whether photographs, listing fees or valuations are included, and who pays if the sale does not happen.

Reservation deposits

Brokers often handle the reservation deposit, so ask where it sits. A deposit in a client account or in escrow is not the same as one paid into the broker's operating account. See our piece on reservation agreements and escrow.

What buyers should watch

When you ask about a listing, ask who the client is. If the broker acts for the seller, the duty to you is limited, however polite the manner. That is not a criticism. It is how the role works, and a polite broker is still working for the person who signed the agreement.

Ask whether the broker has verified the ownership, and ask for the documents. A broker who cannot produce a current ownership sheet is one to be careful with. Equally, treat a broker's description of a flat as marketing until the register says the same thing.

What sellers should watch

Before appointing a broker, ask for a marketing plan, comparable sales that support the proposed price, and references. An inflated valuation to win the mandate is a familiar tactic, and a price set too high wastes months. The seller's real protection is to compare at least two proposals and to read the exclusivity clause before the price.

Licences

Brokers normally work under a trade licence (živnostenské oprávnění), and the public trade register shows who is registered. For consumer complaints, consult the competent authorities (as of 2026; check the official source).

Fees beyond commission

A purchase also involves the land registry fee, notary or lawyer fees for contract preparation and escrow, fees for verifying signatures and translations. The mix varies from deal to deal, so ask for a written list of costs at the start. A budget built from the commission alone is a budget missing most of its lines.

Frequently asked questions

Who pays the commission in Czechia?

Whoever the brokerage agreement says. Traditionally the seller engages the broker and pays, but buyers who hire a broker pay, and some deals have both sides paying.

Is the commission regulated?

No national tariff fixes it. It is a percentage or a fixed sum set by the agreement, and it differs by firm and property.

What is an exclusive agreement?

One under which only that broker may market the property for a set time. Selling by other means in that period may still trigger the commission.

Can the broker also be my lawyer?

The roles are separate. A broker arranges the deal; checking title and drafting the contract are legal tasks, often for an independent lawyer.

How a negotiation with a broker tends to go

The first meeting is usually about the property, the second about the agreement. Take the second more seriously. A seller who is told that "everyone signs the standard form" is being asked to accept the broker's idea of risk, not the market's. The commission, the exclusivity period and the tail are all open to discussion, and a broker who wants the instruction will often move on at least one of them. Asking is free. The worst answer is no.

Buyers face a quieter version of the same dynamic. A broker who is paid by the seller wants the sale to complete, and a broker who is paid by the buyer wants a flat to be found. Neither motive is dishonest. Both are reasons to separate the commercial advice, which the broker gives, from the legal checks, which someone else should do.

What to do if something goes wrong

Start with the agreement. It says what the broker promised, what you agreed to pay and when. Write to the broker, not only call, and keep the replies. If the problem is a deposit that cannot be traced, ask in writing where it is held and ask for confirmation within a set number of days. If the problem is a disputed commission, the first question is whether the sale actually resulted from the broker's work, which is what the law looks at. For serious disputes, a lawyer is the next step. The trade licence register shows who the broker is registered as, and the competent authorities handle consumer complaints (as of 2026; check the official source).

A first step

Before signing with any broker, ask for the agreement in advance. Mark the commission, the exclusivity period, the tail period and the payment trigger, and take the copy to a Czech lawyer for a quick review. That ten-minute read is cheaper than a dispute.

This is a general explainer, not legal, tax or mortgage advice.