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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.

Na obrázku vidíte symbolické podání rukou po úspěšném právním sporu o provizi.

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.

Disclaimer:

The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2025. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (consultation@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.