Real Estate Mediation Agreement
The Real Estate Mediation Contract consists of a document whereby the mediation company (real estate agency) undertakes, for an agreed remuneration and on behalf of the client, to seek interested parties for the purchase, sale, exchange, transfer, lease or assignment of positions in contracts whose object is real estate
The remuneration is only due to the mediation company if the sale of the property has been registered or a promissory purchase and sale contract has been signed and the mediation contract provides for remuneration at that stage.
What should be included in a Real Estate Mediation Contract?
The real estate brokerage contract must always be concluded in writing and mention several elements, including those set out in article 16 of Decree-Law No. 15/2013 (which regulates the real estate brokerage activity):
- identification of the characteristics of the property, specifying all charges and charges (encumbrances or mortgages, for example);
- identification of the business (purchase and sale or lease, for example);
- company remuneration conditions, in fixed terms or percentages, as well as the payment method, with an indication of the applicable VAT rate;
- identification of the civil liability insurance or financial guarantee or equivalent instrument with an indication of the policy and insurance entity or, when applicable, of the guaranteed capital;
- identification of the real estate agent who, eventually, collaborated in the preparation of the contract;
- itemized identification of any accessory services to be provided by the company;
- reference to the exclusivity regime, when agreed between the parties, specifying the respective effects, both for the company and for the customer.
What is the duration of a Real Estate Mediation Contract?
The contract will be valid for the duration agreed between both parties, the most usual duration being 6 months (periods of 3 or 12 months are also common) and automatically renewed for a similar period (if not canceled by one of the parties with due advance). If the duration of the contract is not mentioned in it, it is considered that it was concluded for a period of 6 months.
Who is responsible for drawing up a Real Estate Mediation Contract?
It is the responsibility of the mediator company (holder of a Real Estate Mediation License) to prepare the CMI, subject to the specifications imposed by the legislation in force, and may present particular contractual clauses, provided that they have been previously approved by IMPIC - Instituto dos Mercados Públicos Real Estate and Construction . According to article 3 of Decree-Law no. 102/2017 , if the mediation company uses the model contract with general contractual clauses, it does not need the prior approval of IMPIC.
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