Real Estate Mediation Contract

Remuneration is only due to the mediation company if the property sale has been notarized or if a purchase and sale promise contract has been signed and the mediation contract provides for remuneration at this stage.

What should be included in a Real Estate Mediation Contract?

The real estate mediation contract must always be made in writing and mention several elements, including those stated in article 16 of Decree-Law no. 15/2013 (which regulates the real estate mediation activity):

• identification of the property characteristics, specifying all burdens and charges (such as liens or mortgages);
• identification of the transaction (purchase and sale or lease, for example);
• conditions for the company's remuneration, in fixed or percentage terms, as well as the payment method, indicating the applicable VAT rate;
• identification of the civil liability insurance or financial guarantee or equivalent instrument, indicating the policy and insurer or, when applicable, the guaranteed capital;
• identification of the real estate agent who may have collaborated in the preparation of the contract;
• detailed identification of any ancillary 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 the client.

What is the duration of a Real Estate Mediation Contract?

The contract will be valid for the agreed period between both parties, with the most common 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 notice). If the contract duration is not mentioned, it is considered to have been entered into for a period of 6 months.

Who is responsible for drafting a Real Estate Mediation Contract?

It is the responsibility of the mediating company (holder of a Real Estate Mediation License) to draft the CMI, subject to the specifications imposed by current legislation, and may include particular contractual clauses, provided they have been previously approved by IMPIC - Institute of Public Markets for Real Estate and Construction. According to article 3 of Decree-Law no. 102/2017, if the mediation company uses a contract model with general contractual clauses, prior approval from IMPIC is not required.

Can I cancel a real estate mediation contract?

According to Decree-Law no. 24/2014, of February 14, the consumer has 14 days to cancel the contract without any penalties, just by communicating that intention of resolution (preferably by registered mail).

Article 10

Right of withdrawal in contracts concluded at a distance or concluded outside the establishment

1 - The consumer has the right to terminate the contract without incurring any costs, other than those established in paragraph 3 of article 12 and in article 13 when applicable, and without the need to indicate the reason, within 14 days from:

a) The day of the conclusion of the contract, in the case of service contracts;