The real estate brokerage agreement is a kind of a contract for the performing of services. It is often said that it shows some similarities to a commission (so-called „contract of mandate”).
Simply put, in this agreement a client orders an agent (real estate company) to take activities to sell, rent, lease or buy property, or possibly other rights to real estate, and a client in return undertakes to pay a specific commission.
The real estate brokerage agreement is therefore the basis for an agent in a specific case commissioned by a client.
Currently however, there are no legal regulations regarding the nature, scope or content of the brokerage agreement, except for the requirement to conclude such a contract in written or electronic form.
This makes it necessary to pay close attention to particular conditions in such a contract, which most often takes the form of standard terms previously prepared independently by the broker.
A real estate agent should present a brokerage agreement in accordance with all applicable regulations. It should be noted that despite the repeal of the regulations specifying the nature of the brokerage contract, there are a number of other regulations that should be taken into account in the construction of such a contract, including provisions protecting consumer rights.
First of all, such a contract must indicate the name and address of the trader - broker and - if there is one - a person performing brokerage activities on his behalf.
Second, a copy of the document indicating the appropriate civil liability insurance should be attached to the contact.
Third, the agreement should define clearly the rights and obligations of the contracting parties, which must be in accordance with good faith and cannot significantly affect the interests of the consumer.
Fourth, in the case of contracts concluded outside the office (which is often the case), the agreement must indicate a 14-day deadline for withdrawing from the concluded contract by a client without giving any reason. A customer, however, may demand the performance of the contract immediately, which means getting rid of his right to withdraw from the contract. Such an agreement should also contain a form of withdrawal.
Fifth, in dealing with a consumer, a broker is obliged to inform him in particular about: his telephone number and his e-mail address, the complaint handling procedure, the total price for the service and the duration of the contract. This information should be included in a brokerage agreement or in an attachment to such a contract.
Sixth, the brokerage agreement should be accompanied by information about the procedure used to protect personal data in accordance with the new regulations (so-called RODO Regulation) with reference to the nature of the processing of these data, including information on the personal data administrator. Depending on the agent’s actions, the consent form for the processing of personal data should also be incuded.
The brokerage agreement should be concluded in writing under pain of nullity (or in electronic form- but in practice it does not apply). This means that any informal agreements with an agent regarding mutual cooperation, scans of contracts sent to an agent or e-mails in the light of applicable regulations must be considered invalid, with no legal effect.
The ASTONS real estate company makes every effort in the right construction and implementation of its brokerage agreements.