What is and how to prepare a real estate brokerage contract

Buying a home is not always done on your own.

NewsEditor
NewsEditor
01 December 2022 Thursday 00:37
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What is and how to prepare a real estate brokerage contract

Buying a home is not always done on your own. Many times, external help is needed to get the best conditions and to delegate red tape. This is where the figure of the real estate brokerage contract enters. What is it for and what advantages does it have for the individual?

The idea is that with the real estate brokerage contract model, sellers or buyers receive advice from a professional with extensive knowledge of the sector, while this intermediary enjoys a commission for his services.

The purchases and sales of real estate represent a large outlay of money, and the commission corresponding to intermediaries is a percentage of this, so legal support is needed to be carried out.

Thus, it is necessary to create a real estate brokerage contract. This legal document, which is also known as "order sheet" or "order note", has the main function of reflecting the corresponding conditions, rights and obligations so that the sale can be carried out in the most convenient way.

Real estate brokerage is defined as a service provided by a professional who knows the real estate sector, its procedures, and who brings experience to advise the people involved, both buyers and sellers, in the process of buying, selling, or renting a property.

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. 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 significant amount of money and in which the real estate agent's commission can mean 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 commit to.

In response to the large number of financial transactions that can be carried out during the sale of a home, there is a need for legal protection over all the activities that are carried out. An important part of the salary of real estate brokers comes from a commission from the sale, it is necessary that their hiring is supported.

In this way, the real estate brokerage contract model is a document in which all the conditions, rights and obligations that correspond to the party that fulfills the function as an intermediary are legally established.

It should be noted that this document does not make the adviser a legal representative or authorize him to make purchases or sales on behalf of another person. This document is intended for the advisor to serve as a facilitator in charge of finding buyers or properties, in order to expedite the process.

Preparing a real estate brokerage contract model is a task that has its difficulties and requires many details. It is a document related to a process in which there are large-scale financial transactions. In this way, enough detail should be included so that there are no misunderstandings.

First of all, the real estate brokerage contract must be in writing and must include all the personal information of both participating parties (name, surname, age, marital status, nationality, NIF, address and profession).

Likewise, it must define in detail the service that is being offered by the person who will act as an intermediary, in addition to having to authorize the intermediary agent to serve as a representative of the buyer or seller in some cases.

To this we must add that the duties and responsibilities of both signatory parties must be detailed, specify the area of ​​action for the business, clarify how long the real estate brokerage contract will be in force, and it must be defined in detail. What can be the causes of termination for the contract. Finally, when preparing a contract of this type, it is always ideal to have the support of a legal professional trained to draft it.

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