Agreement for the provision of real estate services for the acquisition (purchase) of real estate
[Name of organization], represented by [manager's position, full name], acting on the basis of [fill in as necessary], hereinafter referred to as the “Agency,” on the one hand, and [F. I. O. and passport data for individuals/full name, full name and position of the manager, a document confirming his authority and information on state registration for legal entities], hereinafter referred to as “Customer”, and together referred to as “ The Parties have entered into this agreement as follows:
List of agency services
Lawyers recommend that clients of real estate agencies insist that the realtor’s responsibilities be set out in detail and as accurately as possible in the agency agreement. Below are language that can be interpreted in two ways, as well as those clauses of contracts that may harm the interests of the client. All statements are quotes from contracts that are used in the work of real estate agencies in Yekaterinburg.
Disputed points:
1. “Search and display an Object that meets the Client’s requirements.”
As a rule, contracts do not specify the exact number of objects that will be offered to the client during the term of the contract. Of course, it is possible that the buyer will like the first apartment shown and buy it. However, on city forums, users often express dissatisfaction with the work of realtors, who, it seems to them, select and show too few properties. Interestingly, if the client independently finds the property and purchases it during the contract period, he will be obliged to pay the realtor his commission. The same will happen in case of early termination of the contract at the initiative of the client.
For comparison, in agency agreements of Moscow real estate companies, a similar clause reads as follows: “The Agency undertakes to ensure that the Customer views at least __ apartments that meet the requirements specified in clause 1.2 of the Agreement.”
2. “Prepare the necessary documents for the proper execution of the transaction.”
This paragraph does not disclose who exactly - the realtor or the client - will collect information. “Preparing documents” in this case can mean both receiving all the necessary documents for a transaction for the client, and checking the availability of all the certificates provided by the client and even putting them in a folder in a certain sequence for submitting documents for registration. Lawyers recommend documenting who will do the collection and reflecting this in the contract.
3. “Assistance in organizing mutual settlements between the parties to the transaction.”
Perhaps the buyer's realtor will lobby for the idea of using a safe deposit box for mutual settlements or, at a minimum, insist on using the bank's services for recalculating and checking banknotes. One way or another, the role of the realtor in the settlement procedure is not clear. Will the real estate agent recalculate the amount or check the authenticity of the bills himself, and is an error grounds for reducing his fee or even grounds for terminating the contract? These questions remain open.
4. “Carry out a set of marketing activities related to the search for a buyer for the Property being sold and the search for the Property being purchased, incl. develop and place advertising (its types and volume are determined by the Realtor independently)"
Advertising of the property being sold is carried out at the expense of the agent, and he is tempted not to pay for it. For example, place an ad only on free information resources. The seller has no doubt about the effectiveness of the listings on these sites as long as buyers actively call and show up. However, it happens that buyers are not interested in the property, the sale is delayed, and the realtor refuses to place an ad on paid platforms. And then the lack of an initial agreement on in what sources and in what volume the property will be advertised will lead to a conflict between the client and the realtor.
For comparison, in Moscow, agency agreements specify which resources the advertisements will be placed on and whether they will be included in the top of the best. The number of banners and streamers that will be placed on the city streets is also agreed upon in advance.
5. “After signing the contract with the buyer, search together with the Client for options for the Purchased Object.”
This clause is an excerpt from the agreement for the exchange of an apartment (implies the sale of the client’s apartment and the purchase of another). Ideally, two transactions for alienation and purchase should be carried out with a minimum interval, preferably on the same day. However, in accordance with the above paragraph, the search for an object to purchase should only begin on the day of signing the purchase and sale agreement. Note that in Yekaterinburg, mutual settlements between the parties occur at the moment of signing the agreement. Thus, the client risks being left alone with the money from the sale of the apartment for several weeks or even months. And given the rate of growth in housing prices in Yekaterinburg, after a few months of searching, it may turn out that there is no longer enough money to buy the desired housing.
Missing Responsibilities
A separate category includes clauses that are not included in agency agreements. All these points are related to checking the history of the apartment. Realtors believe that it is impossible to prescribe in the contract a set of measures to verify the legal cleanliness of an apartment, since the term “legal cleanliness” does not officially exist. Of course, a real estate agency is not the Ministry of Internal Affairs. And agents are limited in their ability to obtain information. However, nothing prevents the client of a real estate agency from insisting on the inclusion of the following responsibilities of the realtor in the contract: 1. Receiving by the realtor information about the encumbrance of the property - requesting a certificate from the Unified State Register of Real Estate; 2. Receipt by the realtor of information about the presence of debt for utilities; 3. Receiving information by the realtor about persons registered in the apartment - requesting information from the passport office; 4. Checking the owners of the apartment, as well as persons registered in the Apartment, for registration in a psychoneurological or drug treatment clinic.
The list is incomplete, and in each case it can be supplemented.
Let us note that in words, realtors usually promise to carry out these actions, and many actually do this, however, due to the great responsibility of the performer, these points are not fixed in most agency agreements.
Transaction support when buying and selling an apartment
Transaction support involves the work of an agent from the moment the apartment is prepared until it is transferred to the buyer. The apartment is prepared both externally and documented. The specialist is present at all important stages of the transaction, advises, coordinates, supports , often works by proxy from the client, provides support in the MFC, Rosreestr, cadastral chamber, BTI, bank, etc.
Learn more about the advantages of selling an apartment through an agent in the video:
Agreement with a realtor: no pitfalls
Clients of real estate companies can be advised to condition the payment of remuneration for services rendered on the fact of transfer of the right to the object being sold (or purchased). For sellers of real estate, it would be useful to additionally stipulate that the remuneration for the agency’s services will be deducted directly from the sale price of the apartment due to the seller. Establishing a penalty for a client’s unilateral refusal to fulfill a service agreement is illegal.
Contract agreement between agency and realtor
/ / From a theoretical point of view, a lease agreement is the temporary possession of someone else’s property for a certain payment, and a paid service agreement is the performance of a number of actions in order to receive a reward.
But in practice, these concepts are difficult to distinguish. If real estate services are provided by several agents (or companies), then the agreement must contain information about the rights and obligations of all participants in the transaction. The lack of information about at least one of the parties to the transaction makes the contract invalid. An agency contract is similar in content to a contract of agency. In real estate practice, it is more often used in cases where on behalf of the client it is necessary to perform not only legal, but also actual actions, that is, those that do not cause any legal consequences (advertising the property in the media, negotiations with potential interested parties, etc.).
P.). Agency agreements, in addition to the general provisions applicable to the contract of agency, may contain a rule on “exclusivity”.
Its essence is that, having entered into an agreement with a real estate agent to search for an object that satisfies the requirements specified in the agreement, the client, under the threat of paying a penalty, can no longer cooperate with other agencies or search for the object independently.
Practice shows that in case of non-compliance with this rule, the agency can not only demand payment of the penalty established in the contract, but also seize the apartment purchased by the principal-buyer to secure this payment.
Agreement for the provision of services for searching and purchasing an apartment
2.4 It is recognized that the amount of damages caused to the Realtor by the use of confidential information about the Property in violation of the Agreement cannot be less than the price of the Realtor’s services under the Agreement. Regardless of the moment and grounds for termination of the Agreement, the terms on confidential information, the procedure for its use and liability for improper use of such information remain in force for 12 (Twelve) months from the date (date) of the Client’s last receipt of information about the Object.
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Real estate contract
4.1.2 Beginning of actual use of the Object by the Customer. By actual use of the Facility, the Parties understand the physical presence of the Customer (his employees) on the territory of the Facility for more than business days.
6.4. If, within months from the date of signing the Lease Agreement for the areas selected by the Contractor, the Customer enters into a Lease Agreement for additional areas in this premises, he is obliged to pay the Contractor a commission for additional areas under the terms of paragraphs. 5.1, 5.2 Agreements.
Contract with a realtor - brief and most important
02 The first mandatory point is the subject of the contract
. It refers to those legal relations regarding which the contract is concluded (purchase of an apartment, sale, rental of an apartment, preparation of documentation for the transaction, provision of information, etc.). Your task is to clearly find out what exactly the realtor undertakes to do in your favor, what you must pay him for, and what the payment procedure is. Otherwise, you risk additionally paying for notary services, advertising, BTI and other services, or doing some of the work yourself.
How to sign a contract with a realtor, what to pay attention to
When completing real estate transactions, the services of a realtor are very important. After all, real estate agents are well versed in all the intricacies of such an agreement, they know what documents are needed and how to properly formalize the transaction from the legal side. Clients resort to the services of realtors because they do not have the time or desire to understand the intricacies of real estate transactions. After all, it’s better to save your nerves and time and immediately contact realtors.
You should take your choice of real estate agency seriously. The agency must have an impeccable reputation and good recommendations. After all, you can run into scammers.
To prevent unpleasant situations from happening to you, you need to know how to properly draw up an agreement with a realtor, what details you should definitely pay attention to, and what important points of the agreement not to forget.
Parties to the agreement
There are two parties involved in a real estate contract. One of them is called the Customer - a person who seeks the help of a real estate agent to obtain a certain type of real estate-related services. The second party - the Contractor - is a legal entity on whose behalf a representative - agent - acts. Also, the executor can be an individual entrepreneur, who is the person providing real estate services.
When concluding an agreement, you need to carefully read the contractor’s documents, check that they are filled out correctly and check the accuracy of the information about the contractor with the original documents. Also, do not be shy about checking the passport of the agent who acts under a power of attorney on behalf of the agency, whether it is filled out correctly and whether such a power of attorney is available.
In some cases, if the agent’s identity is suspicious, you can ask him for a passport and make yourself a copy of this document.
Subject of the agreement
The most important clause of the contract for the provision of real estate services is the first clause – “Subject of the contract”. It describes in detail what kind of service the customer wants to receive from the contractor. A clear description of the property is also indicated (number of square meters, location, cost per square meter and other information).
Duties of the parties
In the agreement for the provision of realtor services, each party has clear responsibilities, which are specified in the paragraph “Rights and obligations of the parties.”
Responsibilities of the performer:
- Taking actions that will facilitate the fulfillment of the customer’s instructions;
- Organization of promotional events, meetings, as well as support of negotiations on organizing manipulations with real estate in the interests of the customer;
- Preparation of documents and drawing up an agreement;
- Notifying the customer about all your actions.
The performer has the right:
- Do not carry out the customer’s instructions that are not specified in the clauses of the contract or previously agreed upon with the contractor, as well as such instructions that go beyond the scope of the contractor’s duties;
- If there is a need to involve third parties in the work, as well as demand from the customer additional information and documents to assist him in fulfilling the terms of the contract.
The customer has the right:
- Request from the agent a report on the work performed;
- Personally attend negotiations regarding his deal.
The customer also has a number of responsibilities:
- Provide the agent with reliable information about real estate;
- Timely pay the agent the amount of remuneration for his services;
- Independently pay for the costs associated with the preparation and collection of documents for the transaction;
- Do not enter into similar agreements with third parties for the duration of the agreement signed with the realtor;
- Promptly provide the agent with all the information and documents necessary to complete a successful transaction, and also issue (if necessary) powers of attorney to represent your interests.
Terms of the contract
To ensure that the contract with the realtor does not extend for an indefinite period, the contract clearly states its validity period and the period for the agent to complete the assignment assigned to him (scope of services).
To indicate such information in the contract, a special clause “Duration of the contract” is prescribed in it. Here they indicate the expiration date of the agreement between the customer and the contractor, and the terms for the provision of services by the realtor under the contract are usually specified in the “Subject of the contract” paragraph.
Cost of services and payment procedure
The clause of the agreement “Cost of services and payment procedure” indicates the amount of remuneration that is paid to the agent after he fulfills his obligations. The payment procedure is also prescribed, that is, the date or event is indicated after which the customer must pay the realtor in full.
It is specified how payments will be made: through a bank account, to a card, in cash, in installments or in one amount at once. The amount of VAT is also indicated here if the agency is a payer of such tax.
Responsibility of the parties
Responsibility for violation of the terms of the contract is included in the paragraph “Responsibility of the parties”. This contains information about what fines and other things the parties will bear for failure to fulfill their obligations under the contract.
The agreement and the certificate of work performed according to the document can be found here.
Agreement for the provision of real estate services for the sale of real estate
- The Customer undertakes to: Pay for the Services in the amounts and terms provided for in the Agreement.
- Promptly transfer to the Contractor all information and documentation necessary for the provision of Services.
- Accept the Services provided in accordance with the terms of the Agreement.
- Do not transfer information received from the Contractor related to the provision of services under the Agreement to third parties and do not use it in any other way that could lead to damage to the interests of the Contractor.
- During the term of the Agreement, do not take any actions (personally or through intermediaries) related to the provision of Services without the consent of the Contractor, including not independently inspecting the Real Estate.
- Provide Services with high quality and on time in accordance with the terms of the Agreement.
- Receive oral and written explanations from the Contractor related to the provision of Services no later than 2 (Two) business days from the date of presentation of the relevant request.
- Demand payment for services rendered.
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Contents of the document
Like any legal document, an agreement for the provision of real estate services has a number of mandatory details. Thus, the contract must include the following information:
- Date of drawing up the contract for the provision of real estate services, place of drawing up the document;
- Names of the parties to the agreement;
- Description of the subject of the contract;
- Conditions and terms of payment of remuneration;
- Time limits for the parties to fulfill their obligations;
- Duties of the parties;
- Mandatory transaction criteria;
- Responsibility of the parties to the contract;
- Procedure for resolving disputes;
- Contract time.
The document should contain as much detailed information as possible; this will allow the two parties to such a transaction to protect themselves and their interests. Therefore, it is advisable to conclude different contracts for different transactions, depending on the type of service.
The agreement can be found at the link.
In practice, it is known that real estate agencies, as a rule, in their activities more often conclude contracts using a single template, where I enter what specific service the customer wants to receive.
Agreement with a realtor: important points and dangerous points
It is worth noting that the law does not even have the concept of “agreement with a realtor,” so there is no standard agreement for the real estate market that can simply be downloaded on the Internet, like when buying and selling a car. Each agency or private realtor uses its own version of the contract. In essence, this is a mixed type contract that includes elements from many other contracts. Most often, the basis is a contract for the provision of services, a contract of agency or an exclusive contract. In addition, the Guild of Realtors has developed a sample contract that has undergone legal review, complies with current laws and is suitable for the modern real estate market.
Agent services
An agreement for the provision of real estate services for the sale of real estate is concluded with an agent. This name is also applied to a realtor when concluding an agreement with him. Actions and rules for concluding an agreement are regulated by the Civil Code of the Russian Federation. Most often, the parties to such an agreement are an individual - the Customer, and a legal entity - a real estate company. On behalf of the company, actions with real estate are carried out by a specific person - that is, an agent of this company.
The list of services of a real estate agent includes those services that are specified in the contract. For example, if we are talking about buying real estate, a realtor looks for real estate that meets the customer’s conditions, holds meetings with sellers, and provides support for real estate purchase and sale transactions.
Pros and cons of working with real estate agents
As with any business, there are wins and losses when working with an agency. Much will depend on which real estate agency the client contacts and what degree of reliability it has.
Advantages of cooperation:
- prompt search for a client to purchase. For an agency with a good reputation, the period is about three months;
- comprehensive advertising of the apartment for sale;
- answer phone calls from clients, arrange viewings;
- are engaged in checking the cleanliness of documents before concluding an agreement.
Information
The integrity and competence of the real estate agency must be checked before the conclusion of the contract. You need to carefully study the reputation of the real estate company and customer reviews about it.
Disadvantages of cooperation:
- the cost of services is on average about 5% of the price of the apartment;
- there is a danger of facing fraud - entering into a conspiracy with the buyer;
- In case of early termination of the contract, the advance payment is lost;
- long sale.
Information
In our country, “black” realtors are still feared, although their time has long passed. This type of activity is difficult to deal with. However, there are problems of a different kind. For example, an agreement has been concluded, but the real estate agency has a small client base. Accordingly, time drags on and the seller is simply wasting his time.
There are also cases when an agent receives an advance and disappears. Turns off the phone or creates the appearance of activity.
In order not to run into an unscrupulous real estate agency, you need to check its registration or certificate. The agency must have an excellent reputation, a wide client base and established connections in the real estate industry.
What should a contract with a real estate agency contain?
An agreement with a realtor must be drawn up and signed only in the office of a real estate agency. As mentioned above, the agency will offer to sign a template it already has, with the individual features of your specific case included in it.
You cannot sign an agreement without reading it, even if you completely trust the realtor.
If there is a need for a detailed review, or you want to show the agreement to a lawyer, then you can postpone writing and take the draft agreement for review for a day or two. A serious agency will never interfere with this. And if a realtor is against a detailed review, then this is already a reason to think about his trustworthiness.
The contract must necessarily contain:
- date of drawing up the contract. Usually it is affixed immediately before signing the contract;
- full name of the agency, full name and passport details of the realtor signing the contract on behalf of the agency, legal details and legal address of the agency;
- correct name (full name) of the client-principal, his address and passport details;
- the essence of the order, that is, what the client wants from the realtor - searching for an apartment to buy, searching for a buyer in case of alienation of real estate, searching for a tenant, etc.;
- obligations of the realtor to fulfill the agency's instructions - selection of housing options, selection of rental options, price range, range of searches by locality, area of real estate, etc.;
- the amount of the realtor's fee and payment method (advance payment, prepayment, cash, to a bank account, etc.). Since the fee, as a rule, is directly dependent on the value of the property, the contract must also contain the obligation of the realtor to conduct a free assessment of the alienated property;
- the realtor’s obligations to carry out activities to fulfill the order, that is, the obligation to carry out promotions, conduct inspections of options, etc.;
- obligations to the realtor to participate in the execution of the transaction, to prepare documents, to verify the purity of the transaction;
- deadline for fulfillment of obligations by the realtor;
- The realtor's responsibility for the transaction.
The remaining provisions of the contract, for example, force majeure, conditions for the consideration of disputes, etc., are included in the standard contractual set, which are not worth wasting time on studying, since they are fully regulated by the Civil Code of the Russian Federation.
For this type of agreement, the law provides for a simple written form that does not require notarization. This rule is not an obstacle to contacting a notary if at least one of the parties to the contract wishes this.