The Real-Estate Agency Contract

Contract types

There are two basic brokerage contracts:

• Exclusive — you authorize one agency for a period (usually 3–6 months); the commission is due even if you find the buyer yourself. The agency invests more in marketing.
• Non-exclusive — several agencies in parallel; the commission goes to whichever brings the buyer. More channels, but none invests fully.

Recommendation: exclusive, with a clear duration and a monthly reporting clause.

What the contract MUST contain

• Party details (yours + the agency's full name, tax ID, registration and licence number)
• Subject — the property (address, area, cadastral parcel)
• Engagement type — exclusive or not
• Duration — start and end, NEVER without an end date
• Asking price and who may change it
• Commission — % with VAT clearly separated
• Who pays and when
• What the agency actually does (a list of services)
• Cancellation and reporting clauses

A reasonable duration

• 3 months — the norm, enough for a serious campaign
• 6 months — for luxury and specific locations
• 1 year — only if the agency offers something special in return

Avoid open-ended ("until further notice") contracts — with no end date they run for years without your oversight.

The "tail" clause and expiry

On expiry you can renew, switch agency, or try yourself. But if a buyer who viewed the property during the contract comes back within a period after expiry (often 30–60 days), the agency often still earns the commission. This "tail" clause must be in writing — ask for a specific number of days before signing.

Cancelling before expiry

Reasons courts generally accept: the agency fails its obligations, loses its licence or is frozen, or you withdraw the property. Cancelling "because others are cheaper" usually does not hold and the agency may claim damages. Check the cancellation clause before signing.

Frequently asked questions