Relationship of Buyer/Seller to Practitioner
In order to represent their client’s real estate agencies must celebrate an Estate Agency Contract, that shall be drawn up in writing, with the following elements:
- The duties of the parties;
- Identification of the characteristics of the property which constitutes the material subject matter of the contract, detailing any charges or encumbrances on the same;
- Identification of the transaction in view through mediation by the estate agent;
- The terms of remuneration, namely the amount or percentage, and terms of payment, indicating the VAT rate applicable;
- Identification of the insurance companies through which the third party insurance has been made.
In general the agents represent one part, but it’s possible to celebrate an Estate Agency Contract with both buyer/ seller. In this situation the real estate agency can not receive remuneration from both interested parties in the same transaction, such remuneration being payable only by the party which first contracted them, unless expressly agreed otherwise. The Estate Agency contract can be celebrated in exclusive or not exclusive. When the estate agency company is contracted on an exclusivity basis, it shall have sole rights to arrange the transaction to which the agency contract relates for the duration of the same.
