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:
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.
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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Main points
The contract for the provision of real estate services does not have a set form, but among the main points it contains:
- preamble to the contract (date and place of drawing up, information about the customer-buyer and the contractor-agent);
- subject of the contract (the range of actions that the realtor must perform under the contract with the buyer);
- rights and obligations of the parties;
- deadline for fulfilling obligations;
- cost of services and method of payment;
- the procedure for terminating the contract by mutual consent of the parties;
- liability for failure to fulfill obligations.
The agreement must contain the signatures of the parties and a seal (if any).
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.
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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AGREEMENT
SUBJECT OF THE AGREEMENT
1.1. The Customer instructs, and the Contractor assumes obligations to provide search services for a real estate object (hereinafter referred to as the Property), for the purpose of its use by the Customer on the basis of a lease, sublease, joint activity, cooperation, custody, etc., hereinafter referred to as the Agreement Rentals.
1.2. The Customer makes the following initial requirements for the Object:
- Location: ;
- Profile: ;
- Square: ;
- Price: (per square meter per year);
- Floor: ;
- Parking: ;
- Number of telephones: ;
- Type of contract: .
1.3. During the execution of the Contract, the Customer has the right to change the initial requirements for the Object in written or oral form.
THE CONTRACTOR IS RESPONSIBLE
2.1. Conduct a search for Objects in accordance with the Customer's requirements and offer the found options to the Customer.
2.2. Organize an inspection by the Customer of those Objects that he selects from among those proposed by the Contractor. All Objects inspected by the Customer are included in the Inspection Sheet (Appendix No. 1), which is an integral part of the Agreement.
2.3. Be present at the negotiations on the conclusion of the Lease Agreement between the owner of the Property and the Customer.
2.3.1. Provide the Customer with information about the progress of fulfillment of the terms of the Agreement.
2.4. The Contractor has the right to involve third parties in fulfilling the Customer’s instructions, paying for their services independently.
THE CUSTOMER IS RESPONSIBLE
3.1. Pay for the Contractor's services in accordance with the terms of the Agreement.
3.2. Until the Contractor fulfills its obligations under the Agreement, enter into contact with the owners of Objects or representatives of the owners of Objects found by the Contractor only in the presence of the Contractor, or with the consent of the Contractor.
3.3. Record inspected Objects in the View Sheet.
3.4. Do not transfer information about the Objects received from the Contractor to third parties.
3.5. Provide the Contractor with complete information about contacts with the owners of the Objects found by the Contractor, or representatives of the owners of the Objects, if such took place without the presence of the Contractor.
PROCEDURE FOR ACCEPTANCE AND SUBMISSION OF WORK
4.1. The moment the Contractor fulfills its obligations under the Agreement is the moment of occurrence of the first event listed below:
4.1.1. Conclusion by the Customer of the Lease Agreement for the Object, its part or other premises in the same building indicated in the Viewing Sheet.
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.
4.2. The Customer recognizes the Contractor's obligations as fulfilled also if any of the events listed in clause 4.1 of the Agreement occurred in relation to a person affiliated with the Customer or for whom the Customer is an affiliate. Affiliation of persons, both individuals and legal entities, is interpreted in accordance with the legislation of the Russian Federation.
4.3. Acceptance of the Contractor's services is carried out by signing the Certificate of Acceptance and Delivery of Services by the Customer. The Customer undertakes to sign the Certificate no later than within working days from the moment the Contractor fulfills its obligations under the Agreement established in clause 4.1 of the Agreement, or provides a written reasoned refusal.
4.4. If the Customer fails to sign the Certificate of Acceptance and Delivery of Services or fails to provide a written reasoned refusal to sign the Certificate within the period established by the Agreement, the Contractor’s services are considered accepted by the Customer without any comments, and the Certificate signed by the Contractor unilaterally is the basis for settlements under the Agreement.
PAYMENT FOR CONTRACTOR SERVICES
5.1. The cost of the Contractor's services under the Agreement is agreed upon by the Parties for each proposed Object separately and is indicated in the View Sheet, drawn up as Appendix No. 1 to the Agreement, before inspecting the Object.
5.2. The Customer pays for the Contractor's services within banking days from the moment the Contractor fulfills its obligations under the Agreement.
5.3. In case of late payment, the Contractor has the right to collect a fine from the Customer at the rate of % of the cost of the Contractor's services under the Agreement for each day of delay.
ADDITIONAL TERMS
6.1. All disputes under the Agreement are resolved primarily through negotiations, and in the event of failure to reach agreement during negotiations, in accordance with the current legislation of the Russian Federation.
6.2. The Contractor provides expert support for the transaction when the Parties sign a separate agreement on the provision of real estate services.
6.3. The Contractor guarantees the correct execution of the Lease Agreement only if the Parties sign a separate agreement on the provision of real estate services.
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.
ENTRY INTO FORCE AND DURATION OF THE AGREEMENT
7.1. The Agreement comes into force from the moment it is signed by the Parties.
7.2. The Agreement is valid for six months from the moment it is signed by the Parties or until the Parties sign the Certificate of Acceptance and Delivery of Services. This agreement is drawn up in two copies having equal legal force, one copy for each of the Parties.
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.
Pros and cons of working with a realtor
You can both lose and win from working with a realtor.
It all depends on where the seller of the apartment turns and how reliable the agency turns out to be. Pros of working with a realtor :
- quick search for a buyer (usually within 3 months);
- marketing plan for advertising the apartment;
- receiving calls from clients and organizing viewings;
- checking all documents before the transaction.
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 times 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 are also possible 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.
