Brokerage agreement: Which one is right for me?
If you want to sell your property legally, quickly, and at a fair market price, you'll need a real estate agent. A local, reputable agent will ensure that your property finds a financially sound buyer quickly. To engage an agent, you'll need to sign a brokerage agreement. There are various types of agreements available. Which one is right for you?
The simple brokerage contract
A simple real estate agent contract only requires a verbal agreement. It has no fixed term but can be terminated by the owner at any time. Since this type of contract does not include exclusivity, you can engage other real estate agents to sell your property concurrently.
However, this approach has two significant drawbacks: Firstly, the real estate agent is not obligated to actively pursue the property. Secondly, potential buyers often become skeptical when the same property is offered to them by different agents. Many then wonder if there's something wrong with the property. This could cause the property to become a hard sell, which can also negatively impact the selling price.
The exclusive brokerage agreement
If you decide to sell your property exclusively through a real estate agent, you should sign an exclusive sales agreement. This allows you to rely on your agent's full commitment. You will then conclude a customized contract with them. A major advantage is that this contract is for a fixed term, usually between three and eight months.
This makes not only the duration of the sales process predictable for you, but also the real estate agent's fees themselves, as these are stipulated in the contract. Additionally, you are still free to search for a suitable buyer yourself.
The qualified exclusive mandate
If you want your property sold exclusively by a real estate agent, sign a qualified exclusive mandate with them. With this mandate, neither you nor any other agent are permitted to market the property. If you unexpectedly find a potential buyer yourself, you can still refer them to your appointed agent.
The duration of a qualified exclusive mandate largely corresponds to that of a standard exclusive mandate. Here, too, you can rely on the agent to do everything in their power to sell your property. Due to the stipulations in the contract, the agent has virtually no chance of terminating the agreement or delaying it.
Do you want to be on the legally safe side when selling your property? Contact us! We'd be happy to advise you.
You can find more information here:
https://www.anwalt.de/rechtstipps/maklervertrag
https://de.wikipedia.org/wiki/Maklervertrag
Notes
For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.
Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.
Photo: © oneinchpunch/Depositphotos.com
About the author
Harry Mohr
Real estate agent (Chamber of Industry and Commerce)Harry Mohr, author of this article
