| Some useful info
on ins and out of real estate transactions and notes about real
estate brokers and their practices.
(from the Czech Association of Real Estate - www.arkcr.org
)
How does “real estate”
translate or what is a real estate practitioner called?
If you mean Czech acronym of R/E broker
it is: realitní maklér.
Real Estate agency = realitní kancelár.
How does one show that they own
a property?
(In the U.S. it is called a “deed”.)
He must show “latest deed”
= the actual document related to his property from Cadastre office.
Where is record of ownership kept?
Cadastre office – “Katastrální
úrad”
[[[ our note ...... The
Czech Cadastre office has a very useful website: http://nahlizenidokn.cuzk.cz
- where you can even search out information on ownership of
individual buildings in each Czech town.
The downside is that the site is in Czech - but might be useful
to go through with your Czech estate agent when starting the buying
procedure ]]]
Is much property
owned by the state?
It depends on type of property - it
is about 1/3 in case of residential property.
Who is qualified to register the
title (ownership) of property?
Lawyer in Cadastre office registers
sales contract mostly prepared by advocate or notary.
Is there a state licensing requirement
for brokers? agents?
To work as R/E broker or agent one
must obtain/receive a trade license. It is not the same R/E license
like in your country. There is no qualification needed...
In most cases does a real estate
broker work with both buyers and sellers?
By Czech law R/E broker can work for
seller, buyer or for both of them.
Is Buyer Agency where the broker
represents only the buyer acceptable?
Yes. Why not?
Can a listing agent also sell the
property?
Yes.
Is there a common commission charged
to the seller ?
To the the buyer ?
Commission may by charge to the seller,
to the buyer or to both of them. It is not given by the law how
it should be done.
Do brokers participate in a common
multiple listing system?
There is lot of companies offering
Internet based listing system for brokers in present time in the
Czech Republic.
Problem is that properties are listed mostly with out exclusive
rights contracts…
Are agents working under a broker
paid by salary or commission?
Mostly it is low salary + commission.
If paid by commission, is there
a standard rate?
No.
Who writes the contract? (Broker,
agent, attorney, notary?)
Sales contract should be written by
attorney, notary.
Can the buyer or seller change
terms after the contract is signed?
No.
How long does it usually take between
the time of contract and settlement?
It depends where.
In Prague it may takes 6 month, out from Prague 2 weeks.
Who conducts the settlement procedures?
Mostly brokers use their attorneys.
Are properties appraised prior
to a buyer making a purchase?
Who makes the appraisal?
Prior buyer makes purchase broker
sets his “market” property value.
Property to be sold must be appraised by official appraiser
(by the law expert named by court) but market price may be different.
It is just because of tax reason.
If (realized) market price is higher taxes are counted out of
this price. If realized price is lower than tax is counted out
of official appraisal.
Do most of the brokers belong to
an association of brokers?
Unfortunately no.
Does the association have a Code
of Ethics?
If so, it is followed by most brokers?
Yes Association of Real Estate offices
of the Czech Republic have a Code of Ethics,
Yes, it is followed by most brokers.
What enforcement procedures are
in place if a broker violates the code?
Association of Real Estate offices
of the Czech Republic does have their Supervisory Board.
Becoming informed costs next
to nothing
Being missinformed can be expensive |
