Success in a legal dispute over a commission claim: A significant victory for real estate agents

ARROWS successfully represented a real estate agency in a dispute concerning a claim for commission for brokering an opportunity to conclude a purchase agreement. The dispute arose out of the question of whether a real estate agency was entitled to claim a commission when the purchase contract was not concluded for reasons attributable to the buyer.

In this dispute, we pointed out that although the contract was formally described as a 'booking contract', its contents clearly defined an agency relationship between the buyer and the estate agent. The contract also provided that the commission would become payable upon the procurement of the opportunity to conclude the purchase contract, which was in accordance with section 19(2) of the Real Estate Brokerage Act. The Court of Appeal correctly held that these arrangements were clearly agreed between the parties and were a properly fixed fee, not an invalid contractual penalty.

This verdict confirms that the content of the contract and the intent of the parties took precedence over its formal title, which brought our client a legal victory and new representation in real estate law.

For this successful defense, we must thank Mgr. Jiřina Šlesinger, an expert in contract and real estate law, who handled this case. Jiřina has extensive experience in the area of contentious real estate law, particularly in dealing with brokerage and reservation agreements. Her expertise resulted in a successful outcome for our client.

This case, while it may appear minor at first glance, represents a significant legal victory for real estate agents.