Contracts · 27 August 2026 · 9 min read
Prague apartment buildings: exclusive agency agreement pitfalls
An owner signs an exclusive agency agreement because the agency promises a high price and a discreet sale. Three months later, the agency suggests a price reduction, while the building has already appeared online. A well-drafted agreement can largely prevent this scenario.
Why a high asking price does not necessarily mean a high sale price
Winning an instruction and selling a building are two different things. The price quoted in an agency's pitch letter is intended to persuade the owner to sign. If it is not supported by calculations, the building may remain on the market for a long time, investors notice that it is not selling, and the seller's negotiating position weakens.
Before signing, ask for the calculation: what net operating income and required yield underpin the price, and which investors does the agency believe will pay it?
What the agreement should cover
An owner's checklist:
- No publication without consent: the property must not be publicised anywhere without written consent, including on property portals, the agency's website or in newsletters, even if listed without a price or presented 'anonymously' with photographs.
- Investor approval: the owner approves in advance which investors may be approached.
- Reporting: regular updates detailing who has received the offer, who has signed an NDA and what offers have been received.
- A reasonable exclusivity period, with the right to terminate if obligations are not met.
- A clearly defined fee and the circumstances in which it becomes payable, including after the agreement ends.
- Conflict-of-interest rules: the agent must not buy the building directly or through connected parties without your express consent.
Watch out for fee clauses that apply after the agreement ends
Many agreements stipulate that a fee remains payable if someone introduced by the agency buys the building after the agreement has ended. This is legitimate, but it should be time-limited and apply only to prospective buyers actually named in the reports.
Specialist expertise matters more than the brand
A prestigious agency selling luxury flats and villas may not have experience selling entire investment properties. Ask how many apartment buildings it has sold, to whom and how. An investor buying a building makes decisions differently from someone buying a flat, and requires different supporting information and a different approach to negotiation.
Frequently asked questions
Is an exclusive agency agreement always disadvantageous?
No. Exclusivity allows for a controlled process with one agent accountable for it. What matters is the content of the agreement.
Can I terminate the agreement if the agency publicises the building?
That depends on the wording of the agreement. It is therefore advisable to expressly specify a breach of the prohibition on publication as grounds for immediate termination.
Authors: Maria Kopřivová, Michal Kopřiva, Pura Vida Property Advisory. Published 27 August 2026. This article is for information only and does not replace legal or tax advice.
