One of the most common questions I get is: Who pays the real estate agent's commission? If this is your first time selling a property, the system can be confusing. So today, we will explain how the real estate agent's commission works and who actually pays it.
Real Estate Commission in Property Sales
The amount of a real estate agency's commission in Prague typically ranges between 3–5% of the property's sale price. Outside Prague, commissions are usually higher, often around 5% or more. However, it always depends on the specific type of property, its location, the complexity of the sale, and other factors. The commission amount is always a matter of agreement between the real estate agent and the seller.
If you sell an apartment, house, or land through a real estate agency, the seller always pays the commission. And it makes sense – the seller hires the real estate agent to represent their interests and manage the entire sales process.
As part of the commission, the real estate agent provides:
✔ Market price evaluation – ensuring the property is sold quickly while achieving the maximum possible price.
✔ Professional presentation – high-quality photos, video tours, and home staging.
✔ Marketing and advertising – promotion on real estate portals, social media, and buyer databases. ✔ Property viewings – handling inquiries, organizing showings, and negotiating terms.
✔ Legal services – preparing contracts, securing escrow services, and verifying documents.
✔ Finalizing the sale – managing the handover process, including documentation and utility transfers.
In short, the commission is not just a "reward for success"—it covers a complete package of services that ensure a smooth and secure sale. If the agent represented the buyer, then logically, the buyer would pay the commission. However, in standard transactions, the seller orders the service and pays the commission.
When and Why Is the Commission Paid?
The correct timing of paying the commission to the real estate agent is crucial. My ethical stance is that the commission should only be paid after the successful completion of the transaction.
🔹 For properties in personal ownership, the real estate commission is paid after the registration of the property in the land registry is completed for the new owner. Only at this moment is the transaction fully finalized, and the agent has completed their work. Once the updated title deed is submitted, confirming the new ownership, the escrow agent (lawyer, notary, or bank) releases the funds to the seller and pays the commission to the real estate agent.
🔹 For cooperative apartments, the commission is paid after confirmation of receipt of the signed and verified transfer contract by the cooperative's management. This contract is then submitted to the escrow agent, who oversees the purchase price and ensures payment is made to both the seller and the real estate agency.
The simple rule is: the real estate agency receives payment at the same time as the seller.
Anything else is highly unusual. Either it is a specific transaction, or the real estate agent is trying to get the money as quickly as possible, even though the deal is not yet fully completed and complications may arise. Unfortunately, some real estate agents attempt to secure their commission after the purchase or even the reservation contract is signed. It is best to avoid such practices.
Conclusion: Who Pays the Real Estate Agent's Commission?
In the real estate world, at least in my experience, a fair rule applies: The one who orders the service also pays for it. A real estate agent always represents the interests of their client—the party that pays their commission. If you are selling, you are the client, and the agent works for you.
On the other hand, if you were buying and the agent were responsible for researching and negotiating the entire deal for you—similar to how transactions are structured in the U.S., where both parties may have separate representation—then the commission would be paid by the buyer.
📩 Do you have more questions about real estate commissions? Feel free to reach out—I’ll be happy to explain everything! 😊