What is a real estate brokerage agreement and when to use it

A brokerage agreement is a contract under which an agent (usually a real estate broker) agrees to find a buyer or tenantfor a property.
The client agrees to pay a commission if the broker succeeds.

Common use cases:

• sale or rental of property through an agency

• searching for tenants for investment properties

• commercial lease mediation

• selling land through a real estate agent

Legal framework

Regulated by the Czech Civil Code (Sections 2445–2454).
Commission is payable only if:

• the contract is signed as a result of broker’s activity,

• and this condition is agreed in the contract.

Key elements of a real estate brokerage agreement

• Parties

• Scope of services (sale, rental, etc.)

• Commission (amount, due date, conditions)

• Duration and termination

• Exclusivity (yes/no)

• Data protection and communication rules

• Obligations of both sides

• Signature

Common mistakes

• Signing an unclear “reservation” form that is actually a binding brokerage agreement

• No clause on when commission becomes due

• Broker claims commission even if client finds buyer

• Undefined duration → open-ended obligation

• No clarity about exclusive vs. non-exclusive cooperation

Recommendations

Client:

• Read all terms carefully, especially commission and exclusivity

• Require limited duration

• Avoid agreeing to pay if the broker didn’t actually close the deal

Broker:

• Define your activity and expected commission in writing

• Avoid ambiguous or informal arrangements

• Disclose privacy and marketing policies

Practice tip

Exclusivity doesn’t mean the broker will sell the property – only that you can’t sell it sám.
Make sure the deal protects your interests, not jen provizi druhé strany.

Real estate brokerage template – available for a symbolic fee

Need a simple contract for a real estate sale or rental in the Czech Republic?

I can provide a Czech-English template for a symbolic fee.
Suitable for both clients and real estate agents.

Contact me via e-mail or form – quick and clear.

FINAL THOUGHTS – WHAT NOW?

A real estate broker agreement isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting. I am a specialist on contract law – more information here.