The new Civil Code from 1 July 2027: what changes for real estate agents and real estate agencies

The new Civil Code, Act No. 260/2026 Coll. (the “new Civil Code”), replaces the current Civil Code, Act No. 40/1964 Coll. (the “current Civil Code”), from 1 July 2027. At the same time, the new Civil Code unifies civil and commercial contract law. Real estate agents will be affected more than it may seem at first glance. The rules on brokerage agreements and on agreements to conclude a future agreement are changing, as are several rules on the sale of apartments, co-ownership shares and real estate owned by spouses.

What should real estate agents prepare for?

In brief:

• The right to a commission arises only upon the conclusion of the target contract and, where there is a condition precedent (e.g. approval of a mortgage loan), only once that condition is fulfilled.
• An agent may not act for both the seller and the buyer unless the statutory exceptions are met. If the client is a consumer, the exceptions generally do not apply, and a breach means loss of the commission.
• In the case of exclusive brokerage, the agent is entitled to a commission even if the client sells the property themselves.
• An agreement to conclude a future agreement does not have to be in writing, but the conclusion of the purchase agreement can be enforced through the courts only if the agreement was made in writing.
• Brokerage agreements concluded by 30 June 2027 are governed by the current rules.

What is changing for brokerage agreements?

The current Civil Code regulated the brokerage agreement in only four brief provisions (Sections 774 to 777 of the current Civil Code); in relations between businesses, the brokerage contract under Sections 642 to 651 of the Commercial Code usually applied. The new Civil Code provides uniform and more detailed rules on the brokerage agreement (Sections 1050 to 1059 of the new Civil Code) and expressly addresses questions that have so far been the subject of disputes:

• When the commission arises: The right to a commission arises upon the conclusion of the target contract, i.e. the contract between the client and a third party (for example, a purchase or lease agreement). If the target contract was concluded subject to a condition precedent, for example approval of a mortgage loan, the commission arises only once that condition is fulfilled (Section 1052(1) of the new Civil Code). If the agent only undertook to procure an opportunity to conclude the target contract, the commission arises as soon as that opportunity has been procured (Section 1052(2) of the new Civil Code). The time at which the agent becomes entitled to a commission therefore depends directly on how the subject matter of the brokerage agreement is worded.
• Deal frustrated by the client: If the right to a commission arises only once a third party has performed its obligation (for example, paid the purchase price), it also arises if that obligation was extinguished or its performance was delayed for reasons attributable to the client (Section 1052(3) of the new Civil Code).
• Amount of the commission: If the amount has not been agreed, the agent is entitled to the commission customary for brokering similar contracts at the time the brokerage agreement was concluded (Section 1053(1) of the new Civil Code). However, the agent would have to prove the customary amount in a dispute, so we recommend always agreeing on a specific amount of commission.
• Agent’s involvement: If the client concludes the target contract without the agent’s involvement, no commission arises. This does not apply if exclusive brokerage has been agreed (Section 1053(1) of the new Civil Code).
• Expenses: The agent is entitled to reimbursement of expenses in addition to the commission only if this has been expressly agreed. If the agreement is unclear, the agent may claim reimbursement only if they have become entitled to a commission (Section 1053(2) of the new Civil Code).

Can an agent act for both the seller and the buyer?

A fundamental new feature is the prohibition of conflicts of interest. An agent may not act as a broker for both parties to the target contract, for example for both the seller and the buyer, nor become their client’s counterparty. An exception applies if the agent has agreed on this with the client in the brokerage agreement, if the client, having learned of it, did not object within a reasonable time, or if the content of the target contract is defined in the brokerage agreement so precisely that there is no risk of a conflict of interest. However, if the client is a consumer, these exceptions do not apply unless their application would not be to the client’s detriment. If the prohibition is breached, the agent is not entitled to a commission or to reimbursement of expenses (Section 1054 of the new Civil Code). Real estate agencies that have brokerage agreements with both the seller and the buyer and collect a commission from both should therefore review their agreements and procedures before 1 July 2027.

Exclusive brokerage and other rules

The new Civil Code also expressly regulates the following:

• Exclusive brokerage: If the parties agree on exclusive brokerage, the client may not ask another agent to perform the same activity; if the client does so, the agent may withdraw from the agreement. If the client concludes the target contract without the involvement of the exclusive agent (for example, sells the property themselves), the client must pay the agent the commission as if the contract had been concluded with the agent’s assistance (Section 1055 of the new Civil Code). If the client is a consumer, such arrangements must still be expected to be assessed in terms of unfair contract terms.
• Checking the counterparty: The agent is not liable for the buyer or the seller performing their obligations. However, the agent must not propose to the client a person who the agent knows or must know is unlikely to perform their obligations. At the client’s request, the agent must provide the information needed to assess that person’s trustworthiness (Section 1057 of the new Civil Code).
• Commission after the agreement ends: The agent is also entitled to a commission if the target contract is concluded within a reasonable time after the brokerage agreement has ended, provided that this was predominantly the result of the agent’s efforts (Section 1059 of the new Civil Code).
• Termination: The brokerage agreement ends if the target contract was not concluded within the period specified in it. If no such period is specified, either party may terminate it by notice, even without giving reasons (Section 1058 of the new Civil Code). This provision does not set a notice period, so we recommend agreeing on one.
• Documents and payments: The agent must keep the documents obtained in the course of brokerage for as long as they may be relevant to protecting the client’s interests. The agent is also entitled to accept performance intended for the client from third parties (Section 1056 of the new Civil Code).

What to watch out for in an agreement to conclude a future agreement

An agreement to conclude a future purchase agreement is common in real estate sales. Unlike the current Civil Code (Section 50a of the current Civil Code), the new Civil Code does not require written form for its validity; the content of the future agreement must be agreed at least in general terms (Section 583(1) of the new Civil Code). The new Civil Code also lays down the following rules:

• Request: The entitled party may request the obligated party to conclude the purchase agreement within the agreed period. If no period has been agreed, it may do so within one year of the conclusion of the agreement to conclude a future agreement (Section 584 of the new Civil Code).
• Written form: A court action seeking an order requiring the other party to conclude the future agreement may only be brought if the agreement to conclude a future agreement was made in writing. The court will supplement the content of the future agreement to the extent that the parties did not agree on it (Section 587 of the new Civil Code). Otherwise, the entitled party is only entitled to compensation for the damage it suffered by relying on the conclusion of the future agreement (Section 586 of the new Civil Code).
• Time limit for the action: This right lapses if the entitled party does not assert it in court within one year of the expiry of the period for concluding the future agreement (Section 588 of the new Civil Code).
• Change of circumstances: The obligation to conclude the future agreement lapses if the circumstances on which the parties relied have changed to such an extent that it cannot fairly be required. However, the obligated party must notify the entitled party of the change without undue delay after learning or having to learn of it; otherwise, the obligation does not lapse (Section 585(2) of the new Civil Code).

We therefore recommend always concluding agreements to conclude a future agreement in writing, with sufficiently specific content of the future purchase agreement and a precisely agreed period.

What is changing in the sale of apartments and other real estate?

When preparing a sale, real estate agents should keep an eye in particular on the following changes:

• Sale of an apartment: The rules on the ownership of apartments are moving directly into the new Civil Code. The seller must provide the buyer with a confirmation, not older than one month, from the person responsible for managing the building regarding debts relating to the management of the building and the land. A breach of this obligation does not affect the validity of the purchase agreement. The seller also remains liable, as guarantor towards the other owners of apartments and non-residential premises in the building, for debts that have passed to the buyer (Section 1725 of the new Civil Code).
• Sale of a share: The co-owners’ pre-emption right expressly also applies to a gratuitous transfer (gift) of a share to a person other than a close person; in such a case, the co-owners may buy out the share at the usual price (Section 1512 of the new Civil Code). For real estate, the offer must be made in writing and must be accompanied by a draft agreement (Section 1669(3) of the new Civil Code).
• Sale of real estate owned by spouses: From 1 July 2027, the joint ownership of spouses (“BSM”) is replaced by the community property of spouses (“SIM”), into which existing property held in BSM will be transferred automatically (Section 1907(1) of the new Civil Code). If only one spouse sells real estate forming part of the community property of spouses without the consent of the other, the other spouse may cancel the agreement in writing if the buyer knew or must have known that the consent was missing (Section 295(3) and Section 296 of the new Civil Code). Under the current Civil Code, such a legal act was relatively invalid (Section 145(2) and Section 40a of the current Civil Code). If the real estate is registered in the Land Register as part of the community property, the buyer will find it difficult to claim that they did not know the spouse’s consent was required. The written consent of the other spouse therefore remains essential.

What about agreements concluded before 1 July 2027?

Obligations that arose before the new Civil Code takes effect will continue to be governed by the previous legislation (Section 1893(3) of the new Civil Code). Brokerage agreements and agreements to conclude a future agreement concluded by 30 June 2027 will therefore be assessed under the current rules. However, the parties may agree in writing that their relationship will be governed by the new Civil Code (Section 1893(4) of the new Civil Code). Rights in rem are treated differently: from 1 July 2027, ownership, co-ownership and ownership of apartments are governed by the new Civil Code even if they arose earlier; only their creation is assessed under the previous legislation (Section 1893(2) of the new Civil Code). Purchase agreements concluded from 1 July 2027 will be governed by the new Civil Code.

Frequently asked questions

When does the new Civil Code apply from?

The new Civil Code (Act No. 260/2026 Coll.) was promulgated in the Collection of Laws on 30 October 2026 and takes effect on 1 July 2027. Until then, both brokerage and real estate sales are governed by the current legislation.

Can a real estate agent take a commission from both the seller and the buyer?

Only exceptionally. An agent may act for both parties only if they have agreed on this with the client, the client did not object, or the content of the target contract is precisely defined in advance. If the client is a consumer, these exceptions do not apply unless this would not be to the client’s detriment. Otherwise, the agent is not entitled to a commission.

Is the agent entitled to a commission if the client sells the property themselves?

In ordinary brokerage, no, because the target contract was concluded without the agent’s involvement. In exclusive brokerage, yes – the client must pay the commission as if the contract had been concluded with the agent’s assistance.

Do brokerage agreements concluded before 1 July 2027 need to be amended?

It is not strictly necessary. Agreements concluded by 30 June 2027 are governed by the current rules unless the parties agree otherwise in writing. However, the contract templates that real estate agencies will use from 1 July 2027 must be adapted to the new Civil Code.

Conclusion: what real estate agencies should do now

The new Civil Code clarifies the rules on commission and exclusive brokerage, but at the same time introduces restrictions, a breach of which may result in the loss of the commission. Before 1 July 2027, we recommend in particular:

• precisely defining the subject matter of the brokerage agreement (procuring an opportunity or procuring the conclusion of the target contract) and the amount of the commission,
• reviewing the model of charging a commission to both parties to the transaction and the provisions on conflicts of interest,
• expressly agreeing on reimbursement of expenses, the period for concluding the target contract and the notice period,
• adapting templates of agreements to conclude a future purchase agreement and of apartment purchase agreements,
• always requiring the written consent of the other spouse when selling real estate owned by spouses.

Setting up contractual relationships correctly before the new Civil Code takes effect can prevent unnecessary disputes and protect the legitimate claims of real estate agents. HALADA & PARTNERS has long been drafting agreements for real estate agencies. If you need to adapt your templates of brokerage agreements, agreements to conclude a future agreement and purchase agreements to the new Civil Code, contact us.

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