A real estate agency cannot demand a fine for the fact that a prospective buyer, despite having made a reservation, does not conclude a sales contract with the seller. The Supreme Court rejected an appeal by a broker who wanted to keep the reservation fee of CZK 72,600. Those interested in the land withdrew from the purchase after the intermediary failed to ensure the registration of the land in the land register and failed to resolve the problem of missing connections and access road. The Supreme Court announced the decision on its website.
The District Court for Prague 9 had previously ordered the real estate agent to return the reservation fee, and the verdict was also upheld by the appeals court of the Municipal Court in Prague. The Court of Appeal recalled the established case law according to which the failure to conclude a contract with a third party cannot be sanctioned under an agency contract.
The Supreme Court then addressed in particular the question of whether the Real Estate Mediation Act applies to a three-party booking contract. It concluded that it did. The Act expressly states that a prospective purchaser cannot be obliged to enter into a real estate contract or a future contract in the context of a reservation.
According to the Court of Appeal, the statutory provision is a response to the practice of real estate brokers who seek to include similar obligations in their contracts, even though this is contrary to the nature of brokerage contracts. The Supreme Court recalled that the established case law considers such provisions to be absolutely invalid.
Source: CTK
