In today's article we are going to clarify what real estate brokerage consists of and what types of contract models govern this relationship between seller and real estate agent, as well as offer you several contract models so that you can check what content they usually include.
What is real estate brokerage?
Since the Internet has made a wide range of homes, parking spaces and offices available to anyone, having a person who represents the interests of the buyer or seller is not necessary. Even so, there are still many people who resort to real estate brokerage, that is, having a person or agency that acts as an intermediary between the buyer and the seller. Real estate brokerage is defined as a service provided by professionals who know the sector, its procedures and who provide the experience to advise the people involved, both buyers and sellers.
Regulating this relationship between the real estate agent or agency and the seller is important, since we are talking about an operation that involves the disbursement of a very important amount of money and in which the agent's commission can become a very important part of your monthly salary.
That is why real estate brokerage contracts are drawn up, which allow the parties to know what this relationship implies and what they are committing to. We could define this real estate brokerage contract as a document aimed at one of the parties (agent) seeking and facilitating the location of a possible buyer on behalf of a person who wishes to sell a property.
It is important that we are aware that the real estate agent, in no case, is a legal representative or qualified to carry out the sale on behalf of the owner of the home, premises, office or garage.
Its mission, and for that reason it charges a real estate brokerage fee, is to bring together two people (buyer and seller) who do not want or cannot dedicate time to these tasks.
The recognition of real estate brokerage fees
For this work of rapprochement between buyer and seller, which takes a lot of time and requires specific knowledge, the real estate agent receives a real estate brokerage fee. The question we all ask ourselves is not whether or not the real estate agent or agency deserves to be charged for their work, that is clear.
The question is, when should these fees be charged? When is the deposit contract signed? When is the sale formalized at the notary? It is difficult to answer these questions, because not all professionals proceed the same.
The casuistry is infinite. Buyers who change their minds, sellers who leave, people who do not agree and delay the process ... and in the meantime, the real estate agent without charging fees for the work done.
The recognition of real estate brokerage fees must always be clear, both for the buyer, for the seller, and for the agent.
We insist a lot on this point because misunderstandings are the order of the day. There are many people who are not clear about what it means and real estate brokerage fees can be a very important part of the operation.
To avoid losing the fees, legal specialists advise leaving a trail of evidence that can be used to claim in case the owner refuses to pay them.
Among the supporting documents is the contract that concerns us and that we will detail. The real estate brokerage contract
The first thing we have to point out is that Inmogesco is not a legal specialist and the contract models that we offer you are a guarantee of covering all the particular needs of your case. If you want to have the peace of mind of having a completely legal real estate brokerage contract adjusted to your needs, it is important that you consult it with a legal professional who will advise you.
You should also know that the real estate brokerage contract is called by the professionals the " commission sheet " or " commission note ". Be that as it may, we are talking about a contract from which obligations and rights arise for those who sign it.
That is why it is important that both the real estate agent and the seller give the necessary importance to this document, which is very important in fact.
You must answer the following questions, although the more precise you are, the better for everyone.
Who orders us? It goes without saying that the person who signs the real estate brokerage contract must have the capacity to sell the property, that is, it must be its legitimate owner. Something that the agent must verify by requesting a simple note in the corresponding property registry.
What order is made to us? There is no single scenario, since real estate brokerage can refer to a sale, a rental, a swap or any other real estate commission.
What is the asset on which the order is made? Also, of course, we must specify what the object is: a flat, a plot of land, an office, a room, a garage space, etc. All identifying data must be recorded to avoid misunderstandings.
Price that the customer wants to receive? The real estate agent has among its missions, that of advising the client on whether the intended price is logical or is out of the market. Regardless of whether the client listens to the professional or not, the price must be reflected in this brokerage contract.
Remuneration of intermediation services? As we have commented, the fees of the real estate agent or agency must be reflected in this contract, as well as when they will be charged.
Earnest money contract? . As we have commented in this same real estate blog , a deposit contract is a private contract between buyer and seller where the reservation of the property is agreed. A signal is given as a reservation. This signal must be specified if the agent is authorized to collect it or not. In addition, there are several types of earnest, penitential (the buyer can back out) or confirmatory.
Models of real estate brokerage contracts
Model real estate commission sheet or Model real estate brokerage contract If what you are looking for is a model of a real estate commission sheet or real estate brokerage contract, we leave you an example provided by Trapaga Real Estate for inmogesco. Click here to download the real estate commission note .
Exclusive sales order note or exclusive real estate brokerage contract.
What happens in the case of the real estate brokerage of an exclusive property? Although the seller is qualified by law to be able to commission the sale of his home to several people, it is logical that real estate agents ask the owner to know this circumstance.
In the event that the order is carried out exclusively with a single agency or real estate agent, it is important that it is reflected in the real estate brokerage contract.
We leave you an example of an exclusive real estate agent contract model. Click here to download it.
Collaboration contract in real estate brokerage
Real estate agents often collaborate with each other with information, prospects, or properties. It is very common in our market, although things tend to get complicated when it comes to agreeing to participate.
Whether it is 50% or another amount, the important thing is that this collaboration is reflected in a real estate brokerage collaboration contract.
We leave you another example but this time of a model of a collaboration contract in real estate brokerage. Click here to download it.
Do you need any other model of real estate brokerage contract that we have not shared? Leave a comment or get in touch with us and if it is in our power we will help you to achieve it.