Real estate agency agreement and the nuances of its preparation. How to draw up an agency agreement for the sale of real estate? Sample agency agreement for the sale of commercial real estate
in a person acting on the basis, hereinafter referred to as " Principal", on the one hand, and in the person acting on the basis of, hereinafter referred to as " Agent", on the other hand, hereinafter referred to as " Parties", have entered into this agreement, hereinafter referred to as the "Agreement", as follows:1. THE SUBJECT OF THE AGREEMENT. GENERAL PROVISIONS
1.1. The Principal instructs, and the Agent undertakes, for a fee, to carry out on behalf of and at the expense of the Principal a set of legal and actual actions aimed at selling the property owned by the Principal - located at the address: (hereinafter referred to as the “Property”). The property is subject to sale with all inseparable improvements and equipment (plumbing, heating and other equipment, communications). The characteristics of the object are indicated by the Parties in Appendix No. 1 to this Agreement. Ownership of the object is confirmed by certificate No.
1.2. Under this Agreement, the Principal grants the Agent the exclusive right to search for a buyer (buyers) and sell the specified property.
1.3. The property is subject to sale at a price not lower than rubles. The price of the object may be reduced compared to the price specified in this paragraph only with the written consent of the Principal.
1.4. The Agent guarantees that there are no contractual or other relationships with persons that could influence the execution of this Agreement. The Agent guarantees its independence and objectivity during the execution of this Agreement.
1.5. The rights and obligations under the transaction made by the Agent in pursuance of this Agreement arise directly from the Principal.
2. RIGHTS AND OBLIGATIONS OF THE PARTIES
2.1. The agent undertakes:
2.1.1. Conduct a legal examination of documents certifying the Principal’s ownership of the object.
2.1.2. Together with the Principal, develop the terms of the purchase and sale agreement for the property, the form and procedure for payments, as well as a package of advertising materials for the sale of the property.
2.1.3. Conduct marketing research to determine the circle of potential buyers. The results of the study are presented to the Principal in the form of a report.
2.1.4. Search for a person interested in purchasing the Principal's property.
2.1.5. Conduct preliminary negotiations with potential buyers.
2.1.6. Organize meetings between prospective buyers and the Principal.
2.1.7. Together with the Principal, prepare the documents necessary to conclude a purchase and sale agreement for the property.
2.1.8. Be present at negotiations and meetings with all potential buyers.
2.1.9. To inform the Principal, upon his request, all information about the progress of execution of this Agreement and, if necessary, provide the relevant documents (copies of documents).
2.1.10. Provide potential buyers with written information about the property only if this information is provided by the Principal or received from official sources.
2.1.11. Pay at your own expense for the services of specialists and organizations engaged by the Agent in order to fulfill its obligations under this Agreement.
2.1.12. Represent the interests of the Principal in relations with third parties related to the execution of this Agreement, including in authorized bodies, on the basis of a power of attorney issued by the Principal.
2.1.13. Advise the Principal on issues of legislative regulation of ownership of real estate, as well as on investment activities.
2.1.14. Inform the Principal regarding current prices for similar real estate objects located on the territory, based on data on concluded purchase and sale transactions of these objects.
2.1.15. On the terms agreed with the Principal, and at the expense of the Principal, attract builders, appraisers and other specialists in order to prepare the necessary documentation for the object, as well as for the preparation of advertising materials and the implementation of the object.
2.1.16. Execute the Principal’s instructions under this Agreement on the most favorable terms for him.
2.1.17. Within days from the date of execution of the order under this Agreement (clause 2.10 of this Agreement), provide the Principal with a report on the execution of the order. Documents confirming the Agent’s expenses incurred by him in accordance with clause 3.5 of this Agreement must be attached to the report.
2.2. The agent has the right:
2.2.1. Demand and receive from the Principal all necessary documents, including plans, designs, calculations, expert opinions related to the object.
2.2.2. Request and receive from the Principal any title documents for the object.
2.2.3. Make copies of any documents for use in fulfilling obligations under this Agreement.
2.2.4. Use the services of any individuals and legal entities for the purpose of timely and high-quality fulfillment of obligations under the Agreement.
2.3. The principal undertakes:
2.3.1. Provide the Agent with all the information and documents he has necessary to find buyers and conclude a purchase and sale agreement for the property.
2.3.2. Provide the Agent with documents confirming the Principal’s rights to the object.
2.3.3. Together with the Agent, develop the terms of the purchase and sale agreement for the property, the form and procedure for payments, as well as a package of advertising materials for the sale of the property.
2.3.4. Provide the Agent with the necessary authority to execute this Agreement by formalizing this with the appropriate power of attorney.
2.3.5. Receive minutes of negotiations, letters, certificates of work done and other materials from the Agent.
2.3.6. Conduct negotiations with prospective buyers or their representatives only in the presence of the Agent.
2.3.7. Promptly notify the Agent no less than days in advance about the time and place of negotiations on issues related to the sale of the property.
2.3.8. During the term of this Agreement, do not enter into relations with third parties regarding the subject of this Agreement.
2.3.9. Review the Agent's report submitted in accordance with clause 2.1.17 of this Agreement and approve it or notify the Agent of your objections to the report within days from the date of its receipt. If there are no objections from the Principal within the time period established by this paragraph, the Agent’s report is considered accepted.
2.3.10. Pay the Agent remuneration in the manner, terms and conditions established by this Agreement.
2.3.11. Reimburse the Agent for expenses incurred in connection with the execution of this Agreement in the amount, terms and conditions established by this Agreement.
2.3.12. Refer all potential buyers and their representatives who have contacted him directly to the Agent.
2.4. The Principal guarantees that at the time of concluding this Agreement, the object is not the subject of a pledge, is not leased for a long-term (for a period of more than one year), is not transferred for free use to third parties, is not foreclosed on for any reason, and the object has not declared any claims from third parties and authorized government bodies.
2.5. The Principal guarantees that at the time of concluding this Agreement there are no contracts or other agreements on the sale, donation or alienation of the object for other reasons, on the transfer of the object for rent or for free use.
2.6. In the event of foreclosure on the property, the Principal is obliged to immediately notify the Agent about this.
2.7. The Principal undertakes, during the period of validity of this Agreement, not to pledge the object, not to lease it, not to provide it for free use, and not to sell it, not to give it as a gift, or to alienate it in any other way without notifying the Agent.
2.8. The principal has the right:
2.8.1. Require the Agent to provide information and reports on the progress of execution of the Agreement, copies of documents confirming the work performed by the Agent.
2.8.2. Request from the Agent information about potential buyers and information about the negotiations conducted, documented in the appropriate protocols.
2.8.3. Be present at all negotiations with potential buyers regarding the preparation of a purchase and sale agreement.
2.9. The Agent’s obligations to the Principal are considered fulfilled in the following cases:
- if the Principal has signed a purchase and sale agreement for the property with a buyer (citizen or legal entity) represented by the Agent;
- if the Principal has signed a purchase and sale agreement for the object with a person or organization who is the participants (founders), shareholders of the organization presented by the Agent to the Principal as a possible buyer;
- if the Principal has signed a purchase and sale agreement for the object with an organization, founder (participant), the shareholder of which is at least one of the managers of the organization represented by the Agent as a possible buyer;
- if the Principal has signed a purchase and sale agreement with an organization in which at least one of the founders (participants), shareholders or one of the managers is at least one of the founders (participants), shareholders or one of the managers of the organization presented by the Agent to the Principal as a possible buyer .
2.10. The date of execution of the order under this Agreement is the date of signing the purchase and sale agreement for the object between the Principal and the third party.
3. AGENT'S REMUNERATION. REIMBURSEMENT OF AGENT'S EXPENSES
3.1. The agency fee is % of the purchase price of the property.
3.2. The agency fee established by clause 3.1 of this Agreement is paid by the Principal within days from the date of approval of the Agent’s report by the Principal.
3.3. Payment of agency fees is made by transferring funds by the Principal to the Agent's bank account.
3.4. The day of payment is considered to be the day the funds are received into the Agent's bank account.
3.5. The Principal reimburses the expenses incurred by the Agent:
- in the amount of rubles;
- in the amount of rubles;
3.6. Expenses are reimbursed by the Principal within the time frame and in the manner established by this Agreement for the payment of remuneration.
4. DURATION OF THE AGREEMENT. RESPONSIBILITY OF THE PARTIES
4.1. This Agreement comes into force on the date of its signing by the Parties.
4.2. The Agreement is terminated in cases established by the current legislation of the Russian Federation.
4.3. For failure to fulfill or improper fulfillment of obligations under this Agreement, the Parties are liable in accordance with the current legislation of the Russian Federation.
5. OTHER CONDITIONS
5.1. All disagreements arising during the execution of this Agreement will, if possible, be resolved through negotiations.
5.2. If the Parties do not come to an agreement on controversial issues, the disputes will be referred to the court in the manner prescribed by the current legislation of the Russian Federation.
5.3. In all other respects not provided for in this Agreement, the Parties are guided by the current legislation of the Russian Federation.
5.4. This Agreement is concluded in two copies, one for each of the Parties.
6. DETAILS AND SIGNATURES OF THE PARTIES
Principal
- Legal address:
- Mailing address:
- Phone fax:
- INN/KPP:
- Checking account:
- Bank:
- Correspondent account:
- BIC:
- Signature:
Agent
- Legal address:
- Mailing address:
- Phone fax:
- INN/KPP:
- Checking account:
- Bank:
- Correspondent account:
- BIC:
- Signature:
1. THE SUBJECT OF THE AGREEMENT. GENERAL PROVISIONS
1.1. The Principal instructs, and the Agent undertakes, for a fee, to carry out on behalf of and at the expense of the Principal a set of legal and actual actions aimed at selling the property owned by the Principal - located at the address: (hereinafter referred to as the “Property”). The property is subject to sale with all inseparable improvements and equipment (plumbing, heating and other equipment, communications). The characteristics of the object are indicated by the Parties in Appendix No. 1 to this Agreement. Ownership of the object is confirmed.
1.2. Under this Agreement, the Principal grants the Agent the exclusive right to search for a buyer (buyers) and sell the specified property.
1.3. The property is subject to sale at a price not lower than rubles. The price of the object may be reduced compared to the price specified in this paragraph only with the written consent of the Principal.
1.4. The Agent guarantees that there are no contractual or other relationships with persons that could influence the execution of this Agreement. The Agent guarantees its independence and objectivity during the execution of this Agreement.
1.5. The rights and obligations under the transaction made by the Agent in pursuance of this Agreement arise directly from the Principal.
2. RIGHTS AND OBLIGATIONS OF THE PARTIES
2.1. The agent undertakes:
2.1.1. Conduct a legal examination of documents certifying the Principal’s ownership of the object.
2.1.2. Together with the Principal, develop the terms of the purchase and sale agreement for the property, the form and procedure for payments, as well as a package of advertising materials for the sale of the property.
2.1.3. Conduct marketing research to determine the circle of potential buyers. The results of the study are presented to the Principal in the form of a report.
2.1.4. Search for a person interested in purchasing the Principal's property.
2.1.5. Conduct preliminary negotiations with potential buyers.
2.1.6. Organize meetings between prospective buyers and the Principal.
2.1.7. Together with the Principal, prepare the documents necessary to conclude a purchase and sale agreement for the property.
2.1.8. Be present at negotiations and meetings with all potential buyers.
2.1.9. To inform the Principal, upon his request, all information about the progress of execution of this Agreement and, if necessary, provide the relevant documents (copies of documents).
2.1.10. Provide potential buyers with written information about the property only if this information is provided by the Principal or received from official sources.
2.1.11. Pay at your own expense for the services of specialists and organizations engaged by the Agent in order to fulfill its obligations under this Agreement.
2.1.12. Represent the interests of the Principal in relations with third parties related to the execution of this Agreement, including in authorized bodies, on the basis of a power of attorney issued by the Principal.
2.1.13. Advise the Principal on issues of legislative regulation of ownership of real estate, as well as on investment activities.
2.1.14. Inform the Principal regarding current prices for similar real estate objects located on the territory, based on data on concluded purchase and sale transactions of these objects.
2.1.15. On the terms agreed with the Principal, and at the expense of the Principal, attract builders, appraisers and other specialists in order to prepare the necessary documentation for the object, as well as for the preparation of advertising materials and the implementation of the object.
2.1.16. Execute the Principal’s instructions under this Agreement on the most favorable terms for him.
2.1.17. Within days from the date of execution of the order under this Agreement (clause 2.10 of this Agreement), provide the Principal with a report on the execution of the order. Documents confirming the Agent’s expenses incurred by him in accordance with clause 3.5 of this Agreement must be attached to the report.
2.2. The agent has the right:
2.2.1. Demand and receive from the Principal all necessary documents, including plans, designs, calculations, expert opinions related to the object.
2.2.2. Request and receive from the Principal any title documents for the object.
2.2.3. Make copies of any documents for use in fulfilling obligations under this Agreement.
2.2.4. Use the services of any individuals and legal entities for the purpose of timely and high-quality fulfillment of obligations under the Agreement.
2.3. The principal undertakes:
2.3.1. Provide the Agent with all the information and documents he has necessary to find buyers and conclude a purchase and sale agreement for the property.
2.3.2. Provide the Agent with documents confirming the Principal’s rights to the object.
2.3.3. Together with the Agent, develop the terms of the purchase and sale agreement for the property, the form and procedure for payments, as well as a package of advertising materials for the sale of the property.
2.3.4. Provide the Agent with the necessary authority to execute this Agreement by formalizing this with the appropriate power of attorney.
2.3.5. Receive minutes of negotiations, letters, certificates of work done and other materials from the Agent.
2.3.6. Conduct negotiations with prospective buyers or their representatives only in the presence of the Agent.
2.3.7. Promptly notify the Agent about the time and place of negotiations on issues related to the sale of the property.
2.3.8. During the term of this Agreement, do not enter into relations with third parties regarding the subject of this Agreement.
2.3.9. Review the Agent's report submitted in accordance with clause 2.1.17 of this Agreement and approve it or notify the Agent of your objections to the report within days from the date of its receipt. If there are no objections from the Principal within the time period established by this paragraph, the Agent’s report is considered accepted.
2.3.10. Pay the Agent remuneration in the manner, terms and conditions established by this Agreement.
2.3.11. Reimburse the Agent for expenses incurred in connection with the execution of this Agreement in the amount, terms and conditions established by this Agreement.
2.3.12. Refer all potential buyers and their representatives who have contacted him directly to the Agent.
2.4. The Principal guarantees that at the time of concluding this Agreement, the object is not the subject of a pledge, is not leased for a long-term (for a period of more than one year), is not transferred for free use to third parties, is not foreclosed on for any reason, and the object has not declared any claims from third parties and authorized government bodies.
2.5. The Principal guarantees that at the time of concluding this Agreement there are no contracts or other agreements on the sale, donation or alienation of the object for other reasons, on the transfer of the object for rent or for free use.
2.6. In the event of foreclosure on the property, the Principal is obliged to immediately notify the Agent about this.
2.7. The Principal undertakes, during the period of validity of this Agreement, not to pledge the object, not to lease it, not to provide it for free use, and not to sell it, not to give it as a gift, or to alienate it in any other way without notifying the Agent.
2.8. The principal has the right:
2.8.1. Require the Agent to provide information and reports on the progress of execution of the Agreement, copies of documents confirming the work performed by the Agent.
2.8.2. Request from the Agent information about potential buyers and information about the negotiations conducted, documented in the appropriate protocols.
2.8.3. Be present at all negotiations with potential buyers regarding the preparation of a purchase and sale agreement.
2.9. The Agent’s obligations to the Principal are considered fulfilled in the following cases:
- if the Principal has signed a purchase and sale agreement for the property with a buyer (citizen or legal entity) represented by the Agent;
- if the Principal has signed a purchase and sale agreement for the object with a person or organization who is the participants (founders), shareholders of the organization presented by the Agent to the Principal as a possible buyer;
- if the Principal has signed a purchase and sale agreement for the object with an organization, founder (participant), the shareholder of which is at least one of the managers of the organization represented by the Agent as a possible buyer;
- if the Principal has signed a purchase and sale agreement with an organization in which at least one of the founders (participants), shareholders or one of the managers is at least one of the founders (participants), shareholders or one of the managers of the organization presented by the Agent to the Principal as a possible buyer .
2.10. The date of execution of the order under this Agreement is the date of signing the purchase and sale agreement for the object between the Principal and the third party.
3. AGENT'S REMUNERATION. REIMBURSEMENT OF AGENT'S EXPENSES
3.1. The agency fee is % of the purchase price of the property.
3.2. The agency fee established by clause 3.1 of this Agreement is paid by the Principal within days from the date of approval of the Agent’s report by the Principal.
3.3. Payment of agency fees is made by transferring funds by the Principal to the Agent's bank account.
3.4. The day of payment is considered to be the day the funds are received into the Agent's bank account.
3.5. The Principal reimburses the expenses incurred by the Agent:
- in the amount of rubles;
- in the amount of rubles;
3.6. Expenses are reimbursed by the Principal within the time frame and in the manner established by this Agreement for the payment of remuneration.
4. DURATION OF THE AGREEMENT. RESPONSIBILITY OF THE PARTIES
4.1. This Agreement comes into force on the date of its signing by the Parties.
4.2. The Agreement is terminated in cases established by the current legislation of the Russian Federation.
4.3. For failure to fulfill or improper fulfillment of obligations under this Agreement, the Parties are liable in accordance with the current legislation of the Russian Federation.
5. OTHER CONDITIONS
5.1. All disagreements arising during the execution of this Agreement will, if possible, be resolved through negotiations.
5.2. If the Parties do not come to an agreement on controversial issues, the disputes will be referred to the court in the manner prescribed by the current legislation of the Russian Federation.
5.3. In all other respects not provided for in this Agreement, the Parties are guided by the current legislation of the Russian Federation.
5.4. This Agreement is concluded in two copies, one for each of the Parties.
6. LEGAL ADDRESSES AND BANK DETAILS OF THE PARTIES
Principal
Agent Legal address: Postal address: INN: KPP: Bank: Cash/account: Correspondent/account: BIC:
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AGENCY CONTRACT
for the sale of real estate
Individual entrepreneur Sidorova Olga Petrovna, hereinafter referred to as the “Agent”, acting on the basis of State Registration Certificate No. 305770002661234, issued on October 20, 2017 by MIFTS No. 46 for Moscow, on the one hand, and Petrov Alexander Ivanovich, hereinafter referred to as the “Principal”, acting on its own behalf, on the other hand, have entered into this agency agreement as follows:
1. THE SUBJECT OF THE AGREEMENT. GENERAL PROVISIONS
1.1. The Principal instructs, and the Agent undertakes, for a fee, to carry out on behalf of and at the expense of the Principal a set of legal and actual actions aimed at selling the property owned by the Principal - a one-room apartment with an area of 41.4 sq.m. on the 3rd floor of a 9-story residential building, located at the address: Conditional, st. Mira, 24 (hereinafter referred to as “object”).
The property is subject to sale with all inseparable improvements and equipment (plumbing, heating and other equipment, communications).
The ownership of the object was registered by the Toksovo territorial branch of the Leningrad Regional Registration Chamber, as recorded in the Unified State Register of Entries dated January 27, 2017 No. 47-01/38-1/2017-166. To confirm registration, a certificate of state registration of rights dated January 27, 2017, series 47-AA No. 043695, was issued.
1.2. Under this Agreement, the Principal grants the Agent the exclusive right to search for a buyer (buyers) and sell the specified property.
1.3. The property is subject to sale at a price not lower than RUB 2,650,000.00. (two million six hundred fifty thousand rubles).
The price of the object may be reduced compared to the price specified in this paragraph only with the written consent of the Principal.
1.4. The Agent guarantees that there are no contractual or other relationships with persons that could influence the execution of this Agreement. The Agent guarantees its independence and objectivity during the execution of this Agreement.
1.5. The rights and obligations under the transaction made by the Agent in pursuance of this Agreement arise directly from the Principal.
2. RIGHTS AND OBLIGATIONS OF THE PARTIES
2.1. The Agent undertakes:
2.1.1. Conduct a legal examination of documents certifying the Principal’s ownership of the object.
2.1.3. Conduct marketing research to determine the circle of potential buyers. The results of the study are presented to the Principal in the form of a report.
2.1.4. Search for a person interested in purchasing the Principal's property.
2.1.5. Conduct preliminary negotiations with potential buyers.
2.1.6. Organize meetings between prospective buyers and the Principal.
2.1.7. Together with the Principal, prepare the documents necessary to conclude a purchase and sale agreement for the property.
2.1.8. Be present at negotiations and meetings with all potential buyers.
2.1.9. To inform the Principal, upon his request, all information about the progress of execution of this Agreement and, if necessary, provide the relevant documents (copies of documents).
2.1.10. Provide potential buyers with written information about the property only if this information is provided by the Principal or received from official sources.
2.1.11. Pay at your own expense for the services of specialists and organizations engaged by the Agent in order to fulfill its obligations under this Agreement.
2.1.12. Represent the interests of the Principal in relations with third parties related to the execution of this Agreement, including in authorized bodies, on the basis of a power of attorney issued by the Principal.
2.1.13. Advise the Principal on issues of legislative regulation of ownership of real estate, as well as on investment activities.
2.1.14. Inform the Principal regarding current prices for similar real estate objects, based on data on concluded purchase and sale transactions of the specified objects.
2.1.16. Execute the Principal’s instructions under this Agreement on the most favorable terms for him.
2.1.17. Within 3 (three) days from the date of execution of the order under this Agreement (clause 2.10 of this Agreement), provide the Principal with a report on the execution of the order.
Documents confirming the Agent’s expenses incurred by him in accordance with clause 3.5 of this Agreement must be attached to the report.
2.2. The agent has the right:
2.2.1. Demand and receive from the Principal all necessary documents, including plans, designs, calculations, expert opinions related to the object.
2.2.2. Request and receive from the Principal any title documents for the object.
2.2.3. Make copies of any documents for use in fulfilling obligations under this Agreement.
2.2.4. Use the services of any individuals and legal entities for the purpose of timely and high-quality fulfillment of obligations under the Agreement.
2.3. The principal undertakes:
2.3.1. Provide the Agent with all the information and documents he has necessary to find buyers and conclude a purchase and sale agreement for the property.
2.3.2. Provide the Agent with documents confirming the Principal’s rights to the object.
2.3.4. Provide the Agent with the necessary authority to execute this Agreement by formalizing this with the appropriate power of attorney.
2.3.5. Receive minutes of negotiations, letters, certificates of work done and other materials from the Agent.
2.3.6. Conduct negotiations with prospective buyers or their representatives only in the presence of the Agent.
2.3.7. Promptly notify the Agent at least 24 hours in advance about the time and place of negotiations on issues related to the sale of the property.
2.3.8. During the term of this Agreement, do not enter into relations with third parties regarding the subject of this Agreement.
2.3.9. Review the Agent's report submitted in accordance with clause 2.1.17 of this Agreement and approve it or notify the Agent of your objections to the report within 5 (five) days from the date of its receipt. If there are no objections from the Principal within the time period established by this paragraph, the Agent’s report is considered accepted.
2.3.10. Pay the Agent remuneration in the manner, terms and conditions established by this Agreement.
2.3.11. Reimburse the Agent for expenses incurred in connection with the execution of this Agreement in the amount, terms and conditions established by this Agreement.
2.3.12. Refer all potential buyers and their representatives who have contacted him directly to the Agent.
2.4. The Principal guarantees that at the time of concluding this Agreement, the object is not the subject of a pledge, is not leased for a long-term (for a period of more than one year), is not transferred for free use to third parties, is not foreclosed on for any reason, and the object has not declared any claims from third parties and authorized government bodies.
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The civil legislation of the Russian Federation provides for such a concept as a commercial intermediary - a person acting in the interests of others under certain conditions.
When concluding an agency agreement, one of the parties undertakes to fulfill the instructions of the second party under certain conditions. The intermediary can act both on his own behalf and on behalf of the customer, but the latter bears the costs.
What does it represent?
An agency agreement for the sale of real estate is used by the vast majority of real estate organizations. The conclusion of such an agreement gives the agent the right to conduct showings, advertise the property and directly carry out the sale.
Termination of the agreement
Depending on the terms of the agreement, the agency agreement for the sale of real estate may be terminated for various reasons provided for by law. The initiator in this case is usually a client who is dissatisfied with the promotion of the property or other aspects of the relationship with the agent. In this case, the agency may impose penalties. But they cannot and should not be exorbitant - according to the law, they only have to cover expenses (payment for advertising publication, transportation costs when demonstrating an object, etc.).
In fact, when trying to break a contract with real estate agencies, many face problems, including threats of lawsuits and large penalties. To avoid such situations, it is better to seek help only from large and reliable organizations, and also first study customer reviews of the work.
You can both lose and win from working with a realtor. It all depends on where the apartment seller turns and how reliable the agency turns out to be.
Pros of working with a realtor:
Before concluding an agreement with a real estate agency, you need to carefully check its reputation, registration documents, as well as customer reviews.
Disadvantages of working with a realtor:
- high commissions (up to 5% of the cost of the apartment);
- risk of fraud (collusion with the buyer or disappearance after transfer of the advance);
- loss of the deposit for early termination of the contract;
- Slow work and minimal customers.
The days of “black” realtors are long gone, but when working with real estate agencies, problems of a different kind may arise. For example, a realtor may have a very small client base and, by concluding an exclusive agreement with such a company, the seller or buyer of an apartment will only waste time.
There may also be cases of petty fraud, when an agreement is concluded for only one purpose - to receive an advance. Next, the unscrupulous agent simply turns off the phone or imitates the activity without any results.
A good realtor must be officially registered, certified or have professional liability insurance. The company must have a large customer base, established contacts with many real estate sites and an impeccable reputation.
Why do you need to enter into an agreement?
Realtor services include:
- free apartment assessment;
- marketing plan for promoting the sale announcement;
- searching for a buyer and conducting inspections;
- negotiations with clients and advertising the apartment to them;
- checking all documents and preparing for the purchase and sale transaction.
A real estate agency often deals not only with the banal information of a buyer and a seller, but also provides preparation for the sale of an apartment, collects certificates necessary for the transaction, as well as a legal examination of title documents.
The Guild of Realtors has developed a standard agency agreement, which has passed legal examination and contains all the important points that describe the relationship between the customer and the contractor. It is advisable to familiarize yourself with it before signing the contract offered by the realtor.
Required documents
To conclude an agreement, you will need to collect a small package of documents. When concluding a contract, the realtor will be required:
- passport;
- power of attorney from the real estate company indicating powers.
Documents from the real estate agency:
- constituent documents;
- certificate of state registration;
- tax registration certificate.
Documents from the customer of services:
When drawing up a contract, original documents can be transferred to the real estate company for storage. But most often, ordinary copies are transferred so that the potential buyer can make sure that everything is in order with the documents.
Before signing the contract, the realtor may also ask for documents important for completing the transaction - a copy of the permission of the guardianship authorities or an extract from the house register. If they have not yet been formalized, then the signing of the contract may be delayed.
How to compose it correctly?
An agreement for the provision of real estate services is drawn up in accordance with all the requirements of the Civil Code of the Russian Federation (Articles 779-782). The law “On the Protection of Consumer Rights” also regulates legal relations in the field of intermediary services. The contract specifies:
- item;
- rights and obligations of the parties;
- object of alienation;
- cost of services;
- duration of the agreement;
- termination procedure.
The agreement is drawn up in simple written form and signed by the seller and the head of the real estate company or its legal representative.
An annex to the contract may be a certificate of completion of work. It is drawn up after a buyer has already been found, the transaction has taken place, and the realtor’s services have been paid.
Let us consider the main sections of the agreement in more detail.
Parties
This section indicates the name of the real estate company, full name. a director acting on the basis of the charter or a legal representative (with reference to the power of attorney number, date of preparation). The second party to the contract is the seller of the apartment (customer). His full name, date of birth, passport details, registration address and telephone number must be indicated.
Item
The subject of the agreement is real estate services. The company undertakes to provide them within the framework described in the contract, and the seller of the apartment undertakes to pay. The scope of these services must be clearly defined. This is, first of all:
- searching for a buyer for an apartment (the contract specifies the address and cadastral number);
- consulting services, which include apartment assessment.
Duties of the parties
The contract lists all the rights and obligations of the contractor and the customer (seller of the apartment). The client's responsibilities include:
- provision of documents for the apartment (in the form of copies or originals, if provided for in the contract);
- provide assistance at all stages of preparation and execution of the transaction;
- pay for the services of the performer;
- sign the work completion certificate.
Sometimes the customer’s responsibilities include transferring the deposit for the apartment through the realtor, but only if this is provided for in the contract.
Responsibilities of a real estate company:
All responsibilities of the realtor must be clearly stated in the contract. Only in this case will the client have a reason to demand that the contractor strictly fulfill his obligations.
Deadlines
The contract specifies the terms of cooperation, indicating specific dates.. This can be 1-3 months or any other period that is agreed upon by the parties to the agreement. The period may be extended if there is no objection from the parties.
Cost of services and payment procedure
Real estate services must be paid within the terms specified in the contract. Typically, the commission amount is 2-5% of the cost of the apartment or a fixed amount from 30 to 100 thousand rubles.
Most often, payment for realtor services is divided into two parts. The first is payable regardless of the fact of sale of the apartment. Even in case of early termination of the contract, this deposit is not returned. And the second part is the balance of the amount, which is paid only when a buyer is found and the transaction takes place. Payment for the second part is made no later than the day of signing by the customer.
Agreements without a deposit are also possible, under which the entire amount is paid in cash or by transfer to the contractor’s account after signing the bill of sale.
How to terminate?
The seller of an apartment has the right to refuse the services of a realtor at any time, but subject to payment of the expenses actually incurred by him (Article 782 of the Civil Code of the Russian Federation). In this case, the contract is considered terminated from the moment the money is received into the real estate company’s account.
Article 782 of the Civil Code of the Russian Federation. Unilateral refusal to execute a contract for paid services
- The customer has the right to refuse to fulfill the contract for the provision of services for a fee, subject to payment to the contractor for the expenses actually incurred by him.
- The Contractor has the right to refuse to fulfill obligations under the contract for the provision of paid services only if the customer is fully compensated for losses.
The apartment seller has the right to refuse a realtor if:
- he did not begin to provide services within the required time frame;
- From the very beginning there are problems with fulfilling the terms of the contract.
In the event of a break in relations at the initiative of the customer, he is obliged to pay a remuneration in an amount proportional to the services actually received. Calculations are made in the following way: 5% of the promised amount is compensated for preparing the sales contract, 30% for finding a client (if one was found) and 65% for drawing up a bill of sale (as a representative of the customer).
Penalties for unilaterally breaking a contract are illegal. We are talking only about compensation for expenses incurred.
The parties also have the right to terminate the contract at any time by mutual agreement.
Responsibility for violation of the terms of the transaction
When drawing up an agreement for the provision of real estate services, responsibility for its failure to fulfill it, as well as for the safety of documents for the apartment (if they are transferred for storage), must be prescribed.
Responsibility measures for the customer:
- in case of violation of payment terms - a penalty (on average from 0.1-0.2% of the amount for each day of delay);
- loss of deposit in case of early termination of the contract;
- obligation to compensate for the restoration of documents.
Liability measures for a realtor are actually rarely specified in the contract, so the client always has the opportunity to terminate the contract early if he doesn’t like something. But it is still necessary to include such clauses, for example, liability for the failure of a deal due to the fault of the agency. As a measure of liability, it is possible to establish an obligation to compensate for the damage suffered by the seller or buyer of the apartment as a result of such actions.
Underwater rocks
The contract for the provision of real estate services is drawn up by the company, and the customer agrees to its terms or not. Corrections and additions to the contract are extremely rarely allowed. Therefore, the text of the agreement should be studied very carefully.
Please pay attention to the following points:
- deadlines for fulfilling obligations (the contract should not be of unlimited duration);
- the payment procedure and the final cost of services (there should be no vague wording about services that may require additional payment);
- a ban on communication with the buyer before the transaction (this requirement is illegal and often only indicates the non-transparent work of the realtor);
- fines for the customer for any reason, for example, for disrupting the viewing, etc. (an enslaving agreement is unfavorable for the seller or buyer of real estate);
- prohibition on contacting other realtors (this is only possible when drawing up an exclusive agreement).
For a real estate seller, the most beneficial agreement is one in which settlement with the realtor is made at the time of the transaction. In this case, he does not lose the deposit if cooperation does not work out and can calmly choose between 2-3 realtors - whoever brings the buyer will pay. In practice, this means, in the second aspect, that in the absence of an adopted and valid law on real estate activities, so-called standard contracts can only be of a recommendatory nature. This opens up the possibility for the client to make amendments to it at his own discretion, but within the framework of current legislation (that is, the main points listed in the article above).
Thus, if an intermediary (realtor, real estate agency) insists on the immutability of the contract, the impossibility of making any changes to it, allegedly referring to the law, then most likely there are reasons not to trust such a person (organization) and think about options searching for another. Especially in case of categorical refusal. However, theoretically, the law fully allows for appealing such refusals through the courts. It’s just that in a practical sense, this is not only a considerable waste of time, but initially the relationship can be considered damaged, and the result is unpromising.
The first aspect is associated with the fact that if the owner/buyer does not have the time, desire, or necessary knowledge (legal nuances of real estate transactions, the real estate market) to independently search for a real estate property or sell it, he delegates this by concluding an agreement for the provision of relevant service.
That is, the work performed in this case requires payment. Therefore, such an agreed minimum must be present in the contract (a specific amount or actual costs incurred, supported by documents). Cases when the client ultimately finds a buyer/seller himself should also be described, so that questions on this topic do not arise in the future. It is worth reflecting the payment components and terms as specifically as possible.
As for penalties and fines, one should still rely on the current legislation (primarily on the refinancing rate established by the Central Bank of the Russian Federation, since this is a criterion clearly accepted by the court).
Thus, if a potential client does not have an understanding of not only the real estate market, but also the legal aspects of concluding an agreement for the provision of real estate services, then additional legal verification by professionals will clearly not be superfluous. Especially taking into account the rising cost of real estate.
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