Exclusive versus non-exclusive representation

Two owners with the same flat layout in the same neighbourhood choose two different paths: one signs an exclusive agreement with a real estate broker (exkluzivní smlouva s realitní kanceláří), the other entrusts the flat to three brokers at once and expects them to compete for it. After three months they differ not only in the price achieved but, above all, in what they know about their own sale. This text takes apart exclusive representation (výhradní zastoupení) under the law, calculates how much it has to earn to pay for itself, and ends with a list of questions for the signing — including those we find uncomfortable to answer.

What an exclusive agreement with a real estate broker means under the law

Act No. 39/2020 Coll., on Real Estate Brokerage (zákon o realitním zprostředkování), devotes a single section to exclusive representation: § 17. It is worth reading literally.

Under § 17(1), exclusive real estate brokerage (výhradní realitní zprostředkování) restricts two of the owner’s rights at once. The first is the right to conclude a contract on the same property with another broker. The second is overlooked almost every time: it is “the right of the client (zájemce) to conclude a real estate contract (realitní smlouva) without the cooperation of the real estate broker (realitní zprostředkovatel)”. Exclusive representation therefore also covers a buyer the owner finds themselves — a neighbour, a colleague, a friend’s son. Anyone who reads only the first half of that sentence signs something other than they think.

The second point concerns time. The exclusivity clause takes effect at the earliest on the day the real estate brokerage agreement (smlouva o realitním zprostředkování) itself is concluded (§ 17(2)) — a “reservation of exclusivity” signed at a viewing, that is, earlier, binds nothing. And with a consumer (spotřebitel), exclusivity can be agreed only for a fixed term of no more than 6 months; it can be extended repeatedly, but an extension can be agreed no earlier than 30 days before the agreed term expires (§ 17(4)). A twelve-month exclusivity signed right at the start conflicts with this subsection.

That does not mean, however, that such an agreement is worthless — and this mistake tends to be expensive. In its judgment of 21 July 2026, case No. 33 Cdo 2339/2025, the Supreme Court (Nejvyšší soud) concluded that under § 1812(2) of Act No. 89/2012 Coll., the Civil Code (občanský zákoník), a clause departing from the time conditions is disregarded, “without the validity of the consumer contract being otherwise affected”. The seller in that case refused to pay a commission (provize) of CZK 245,250 (the agreement assumed a price of CZK 5,800,000 and a commission of 4.5 % of the final purchase price) precisely by pointing to the exceeded term. The court dismissed her appeal on a point of law (dovolání), and the broker won the dispute.

Three brokers, three prices, one flat

On paper, a non-exclusive sale looks like a competition. In practice it is something else: the same flat appears on the portal three times, with three sets of photographs, in three texts and often at three prices. A buyer who has been searching for half a year notices those three adverts (inzerát) within an hour and reads a single piece of information from them — the seller is in a hurry. They then start negotiating from the lowest of the three prices, not from the one the owner considers theirs.

The second consequence is quieter. Nobody invests in preparation they may not get paid for. A measured survey and a dimensioned floor plan, preparing the flat, a photographer, property particulars (expozé) — all of this is paid for before the sale, not after it. A broker with a one-in-three chance puts in a third of the effort; in practice that means photographs taken on a phone and a text copied from the Land Registry (katastr nemovitostí). It is not a question of loyalty but of budget.

On our website every listing (nabídka) has its own sheet: a title block (popisové pole), dimensions, a site plan, numbered images. That sheet exists once, and each quantity in it always means the same thing. Three brokers mean three title blocks and three different figures for the same area. The buyer notices the difference and factors it into the price.

What exclusive representation buys

With exclusive representation, we take on the preparation costs ourselves and recover them only from the fee after the sale. This covers measuring the flat and a dimensioned floor plan, preparing the flat for the photo shoot, a photographer, property particulars as a document, a dedicated listing sheet on the website and paid advertising in the first two weeks, when the price is decided most (the process from the decision to the Land Registry is covered in the text how to sell a flat in Prague). Without exclusivity, such a budget is not spent, because it cannot be justified.

The second part is the record, and it is bought not with money but with single representation. With us, every enquiry and every viewing has a date, the name of the other party, the reason for rejection and the amount offered, if an offer was made. The owner receives this in writing once a month. In a non-exclusive sale, such a record cannot come into being: each broker sees their own third, and none of them knows whether the prospective buyer who called on Wednesday is the same one who called a competitor on Monday.

When non-exclusive representation makes sense

To claim that exclusivity is always the right answer would be dishonest. There are three situations in which it is not.

If you already have a buyer today — a specific name and a specific amount — do not sign a brokerage agreement at all. You need contract services, escrow of the purchase price (úschova kupní ceny) and the handling of the deletion of a lien (výmaz zástavního práva), not representation. Paying for that with a percentage of the purchase price makes no sense.

For an ordinary flat, where the price is set by the market and not by the presentation, and where the owner is mainly concerned with speed, the difference between one and three representations is smaller than is usually claimed.

And thirdly: if the broker offers nothing for exclusivity that costs money upfront, exclusivity is just a leash with nothing in return. The question “what exactly will you spend on it before it sells?” separates the offers faster than any comparison of commissions.

The risk that exclusive representation shifts onto you

This is the weak spot of our own approach, and there is no point in skirting round it. Exclusivity shifts the risk of a wrong decision onto the owner. If we get the price wrong, the owner bears it: the first days in the advertising, when everyone who is currently searching looks at the listing, will not come back. At the same time, the owner has a single source of information about their own sale — us. That is a position in which unpleasant news gets communicated less well than it should.

We guard against this with three things, and all three belong in the agreement, not in a promise. First, a term of 6 months, not twelve — even where the other party is not a consumer and the law allows a longer term. Second, a monthly written report with figures: the number of views, enquiries, viewings and offers, with the amount for each offer. Third, a price review date agreed in advance — not only at the moment when it is obvious that a review is needed. Without these three items, exclusivity protects the broker more than the owner. That is not a marketing line; it is a description of how the commitment works.

The law itself adds one counterweight: if the purchase agreement (kupní smlouva) is concluded only after the obligation under the brokerage agreement has ended, and this happened because of the broker’s inactivity, error or failure to cooperate, the broker has no right to claim commission from the consumer (§ 19(4)).

Example: how much exclusive representation has to earn

A 72 m² flat in Prague at the median of CZK 159,131/m² across 12 Prague neighbourhoods for the 1st quarter of 2026 comes to CZK 11,457,432. Let us work with an asking price (nabídková cena) of CZK 11,450,000.

Fee of 3 % of the purchase price: CZK 343,500; with 21 % VAT, CZK 415,635 in total.
Discount of 3 % of the same price: CZK 343,500.
Discount of 5 %: CZK 572,500.

The fee and one round of a three-per-cent discount are therefore identical down to the last koruna. So the question is not whether to pay the commission; it is whether the way the sale is run will move the final price by more than 3 %. For a sale without a single price and without a single presentation, our model assumes a first round of discounting of 3–5 %, i.e. CZK 343,500–572,500. The preparation budget that is worth spending under exclusive representation should be measured against precisely this range. What the owner gets for the fee is covered in the text on the real estate broker’s commission.

The second number is time. In July 2026, a flat in Prague was on offer for 45 days on average, in the Czech Republic as a whole for 53 days. Six months of exclusivity is therefore roughly four times the usual sell-out period (doba prodeje) — enough for two adjustments of strategy, and at the same time a period short enough to be wasted without anyone noticing. Whether a non-exclusive sale drags on longer, these data cannot tell us — they do not distinguish exclusive and non-exclusive listings.

Checklist: what to ask before signing a brokerage agreement

Go through it pen in hand, ideally the day before, not at the table after a viewing. The questions are worded so that they can be asked out loud.

Who signs and what they are liable for

Is the agreement in writing? An objection of invalidity for lack of form can be raised only by the client, that is, by you (§ 9(2)).
Does it contain a description of the subject of the transfer, the purchase price or the method of determining it, and the amount of the commission or the method of determining it? If any of these three items is missing, the agreement is invalid (§ 10(1) and (3)).
Is the other party acting under its own authorisation, or on behalf of another company? In the second case, the statutory insurance limits are halved (§ 7(5)).
Have you asked to see the insurance policy? The law expressly gives you that right (§ 8). The limit must be at least CZK 1,750,000 per event and CZK 3,500,000 per year (§ 7(1)).
What is the agreed excess? It must not exceed CZK 5,000 or 1 % of the insurance benefit (§ 7(2)).

Scope and term of exclusivity

Is exclusivity agreed for a fixed term of no more than 6 months (§ 17(4))?
Does it extend automatically? An automatic extension agreed in advance conflicts with § 17(4) — an extension can be agreed no earlier than 30 days before the end.
Does exclusivity also apply to a buyer you find yourself? Under § 17(1), yes. Ask what is payable in that case, and have the answer in writing.
Does the agreement contain a contractual penalty (smluvní pokuta) for breach of exclusivity? In what amount, and for exactly what conduct?
What is the notice period (výpovědní doba)? For an agreement with a consumer for an indefinite term, it can be no more than 1 month (§ 18).
Is the brokerage agreement in a separate document from the purchase agreement? It must be (§ 15).
Is the agreement free of any obligation to conclude a purchase agreement or a contract to conclude a future contract (smlouva o smlouvě budoucí)? Such an obligation cannot be imposed on a consumer (§ 14).

The fee and when it falls due

When is the commission due? The statutory rule is no earlier than the day the purchase agreement is concluded (§ 19(1)).
Has the due date been moved earlier? Then the agreement must contain an express notice that the due date is not tied to the conclusion of the purchase agreement (§ 19(2)).
Is an advance on the commission agreed? For a consumer, it must not exceed two thirds of the agreed commission (§ 19(3)).
Is the commission stated including or excluding VAT? At 3 % of CZK 11,450,000, that is a difference of CZK 72,135.
Who pays for the advertising, the photographer, the survey and preparing the flat if the sale does not go ahead?

What you get for it

Does the agreement list what the broker will do — survey, floor plan, photographs, property particulars, a dedicated listing sheet, an advertising budget?
How often will you receive a written report, and what figures will it contain?
Does the agreement contain a price review date?
Who conducts the viewings, and who is present at the handover of the property?
How are the escrow of the purchase price and the deletion of the lien (zástavní právo) handled with respect to you as the seller?

Frequently asked questions

Do I have to sign an exclusivity agreement to sell a flat? No. The law does not require any exclusivity, and a flat can be sold without it. The difference is not whether you sell, but for how much and with how much oversight of the process.

For how long can an exclusive agreement be concluded? With a consumer, only for a fixed term of no more than 6 months. It can be extended repeatedly, but an extension can be agreed no earlier than 30 days before the end of the agreed term (§ 17(4)).

What if I find a buyer myself? Exclusive representation also restricts the right to conclude a purchase agreement without the broker’s cooperation (§ 17(1)). As a rule, this means the commission is payable even then. The specific arrangement must be in the agreement, not in a verbal promise.

Can exclusive representation for a flat sale be terminated by notice? For an agreement with a consumer for an indefinite term, the notice period is no more than 1 month (§ 18). For a fixed-term agreement, whatever the parties agreed applies — which is why the termination clause is the most important clause in the whole agreement.

Is it better to give the flat to several real estate brokers? If speed is what matters for an ordinary property, the difference tends to be small. If what matters is the price achieved for a property with something to present, a repeated advert at three prices and nobody willing to invest in the preparation work against you.

Key takeaways

Exclusive representation is not a reward for trust; it is an exchange: the owner gives up part of their freedom for half a year, and in return the broker must spend money before receiving any. It makes sense only when the second half of that exchange is written into the agreement and is measurable — the budget, deadlines, figures in the report, the price review date. The law gives the owner three safeguards: the 6-month term, the way it is extended and the due date of the commission. We represent owners and developers exclusively, because otherwise the preparation budget could not be spent — and that is precisely why this checklist is written so that it works against us too.