Check both seller and buyer, their actual representatives and any beneficial owners. AML is not a form signed after the price has been settled. Schedule checks around establishment of the relationship and the transaction so that a rushed reservation does not conceal an unclear customer or funding.
Map both sides
Who pays the commission does not determine the complete AML customer population. FAÚ’s sector interpretation includes both seller and buyer. For a company distinguish the legal entity, director or attorney, their authority and beneficial owners. A name on the title record or the individual communicating with the agency does not settle all those roles.
Determine the relevant stages
A continuing or repeated service contract may establish a business relationship and identification without a value threshold. For occasional transactions sections 7 and 9 contain value-based and other triggers. In an ordinary sale the property price is relevant to value; do not compare only the commission with the threshold. Record completion before the statutory deadline rather than backdating forms.
A reservation can introduce a new buyer, different representation or first payment. Your internal timeline should allocate identity checks, financing assessment and decisions on unresolved issues. When handing a case to another agent, transfer open questions as well as the contact details and price.
Explain funding in context
Ask how the price is funded: savings, borrowing, another asset sale, gift or loan. Select evidence according to risk and consistency with what you know about the customer. A bank transfer is a payment trail, not universal proof of asset origin. If another person pays, clarify their role and economic reason rather than merely changing the account number.
For corporate parties establish and verify beneficial ownership, map ownership and management, and assess PEP and sanctions issues in the applicable scope. No name match alone does not address ownership/control links or all trade sanctions. Where a discrepancy remains specify the evidence needed to resolve it.
Record the outcome
For refusal of cooperation or inability to complete statutory checks assess section 15. Treat suspicion separately under section 18, avoid public accusations and protect reporting information. Link contracts, person-specific verification, financing evidence, discrepancies and reasons for the decision. Changing the buyer or a corporate owner requires renewed assessment.
Practical steps
- Map both parties and representation.
- Determine relationship, value and timeline.
- Perform identification and due diligence.
- Clarify ownership, financing and risk.
- Record the decision and retain supporting evidence.
Illustrative scenario
A purchasing Czech company has one director, but another foreign company will pay the price. The agent checks authority and ownership, obtains an explanation and financing evidence and assesses the payer’s connection. A promised transfer from a European bank is not treated as completed due diligence.
When the situation differs
The agent completes a form only for the seller because the seller pays commission. An unidentified attorney acts for the buyer. The purchase agreement does not replace the missing identification.
What to document
- Party and authority map
- Verification and ownership records
- Price, contracts and financing
Common pitfalls
- Checking only the commission payer
- Checking after settlement
- Unexplained third-party payments
Frequently asked questions
Will the escrow lawyer do everything?
The lawyer has their own duties. The agent cannot automatically transfer responsibility to escrow. Any reliance requires statutory conditions.
Does a mortgage evidence the entire price?
It evidences the relevant financed part. Separately assess the buyer’s contribution and other payers to the extent justified by risk.
Put this guidance into practice
Choose a record for the step you are working on. Adapt it to your profession and actual case.
- Property sale checklist · PDF / Word
- Real estate intermediaries →
- Developers and property traders →
- Real estate auctioneers →
Complete client information online
Where to go next
- Legal entities and their representatives — Four separate checks: company existence, personal identity, representation authority and beneficial ownership.
- Source of funds and source of wealth: two different questions — Distinguish the funds used in a particular transaction from the creation of the client’s wider wealth, and assess supporting documents.
Sources and legal references
- Zákon č. 253/2008 Sb., aktuální znění od 11. 1. 2026 ↗
§ 2 odst. 1 písm. d), § 4, § 7–9, § 15–16 · accessed 2026-10-04 - FAÚ: Realitní sektor ↗
Klienty jsou prodávající i kupující · accessed 2026-10-04
Editorial work and source checks are not independent legal approval of your particular process. Compare the conditions and exceptions with your own circumstances.