Many people do not want to engage in activities related to the sale of their own real estate. In this case, they can take the help of real estate agencies offering full transaction support. In this case, you can choose one specialist who will be closely involved in the sale. An exclusive contract for the sale of real estate is concluded with him. Under such conditions, it is possible to sell the property on really favorable terms, while the homeowner will not be involved in this process on his own.
Concept of agreement
An exclusive contract for the sale of real estate is a unique contract on the basis of which the owner of the property selects a specific real estate agency engaged in the sale of customer housing. This agreement includes a bilateral obligation:
- the client of the agency, who is the customer, must provide the opportunity for specialists to show real estate to potential purchasers and carry out a transaction;
- the direct realtor agrees to sell the house at the optimum cost for the client in a short time, and at the same time, the citizen will not be involved in this process in any way.
The owner of the property should trust the selected agency, but the employees of the institution should deal with all organizational issues regarding the sale of real estate. They are obliged to fulfill their part of the agreement in a quality, conscientious and prompt manner. Legal support is provided to the client, and he must also be guaranteed to receive funds for his property.
The agency receives a certain commission for such work, the amount of which depends on the cost of housing sold. An exclusive contract for the sale of real estate may be concluded exclusively with the company.
The use of such an agreement is considered beneficial for every person who wants to transfer the authority to sell his property to the agency. The amount of remuneration usually remains within the normal range, so the seller does not overpay for his own funds. Money for agency services is paid by the direct buyer.
Under what conditions is it signed?
In order to understand the concept of an exclusive contract well, one should determine the conditions under which it is allowed to sign it. To do this, the following requirements must be observed:
- the realtor is surely transferred all the information about the property being sold, therefore the owner presents the title documents so that the specialist is convinced of the absence of various encumbrances and other applicants for the property;
- the agency conducts an initial analysis of real estate, which allows to determine what remuneration will be requested, at what maximum price an object can be sold, and also which nodal will be included in the contract;
- the specialist gives an initial legal assessment of the documents and the real estate itself, moreover, it is often requested from the client additional papers presented by numerous certificates, orders or extracts from government institutions;
- all the needs and desires of the property owners are established;
- information is provided to customers about what sales technology will be used, as well as at what stages the procedure for the sale of the object is divided;
- the optimal sales period is determined, which usually does not exceed 4 months;
- consumer demand is identified by the specialist, on the basis of which a suitable value of the object is established, and it should not contradict the wishes of the owners.
Only subject to the above conditions, an exclusive contract is concluded.
Benefits of making an agreement
There are certain positive parameters for drawing up such a contract with a real estate agency. The main advantages of an exclusive contract include:
- The owner of the property is protected from possible fraud. If the owner of the object transfers data about his property to different agencies, then serious risks arise to attract the attention of fraudsters. The leakage of information in different institutions can lead to fraudulent schemes.
- The interests of the client of the agency are protected. Only professional and experienced realtors work in such organizations, therefore it is guaranteed that the transaction will be completed promptly, efficiently and successfully. There will be no pressure on the seller, and the citizen is also protected from possible random errors. In professional agencies, every stage of the sale of an object is traced by specialists.
- Competently estimated the cost of the apartment. Realtors working in professional agencies have the experience and ability to independently assess the property. Therefore, the optimal price for the sale of an apartment is set. The results of the assessment will certainly be consistent with the owner of the property.
- Specialists determine customer demand. Based on this indicator, you can identify at what price you can quickly sell real estate.
- Time saving. When drawing up an exclusive contract for the sale of real estate, the owner of the property can save a lot of time, since he does not have to contact different agencies. The sale procedure is fully regulated by the employee of the selected institution, so the citizen will not have to deal with various complex issues on his own.
- Use effective advertising. It is given by the selected agency, and usually it is effective and aimed at direct potential real buyers. Companies involved a different number of information sources, sites on the Internet or print media. For the promotion of housing is charged by firms a commission, and often it is paid in advance.
- It is possible to sell the property at a bargain price. Selling apartments through an exclusive contract is different in that the seller independently decides what the minimum cost of the object is.
An undoubted advantage of using realtor services is that buyers are more loyal to apartments sold by specialists. This is due to the fact that they are confident in the legal purity of the transaction, therefore they are ready to overpay for the proposed facilities.
Disadvantages of an exclusive contract
Drawing up this agreement with a real estate agency has not only advantages, but also some significant disadvantages. Apartment owners should be aware of these negative aspects.
The main disadvantages include:
- the sale procedure may take a long time, but this is usually due to the fact that the seller himself requires a significant amount of funds for the apartment;
- there is a possibility of encountering firms engaged in illegal or dishonest activities, therefore, only trusted and reliable organizations should be chosen;
- some black realtors completely mislead customers and deliberately reduce the cost of housing to increase their own fees.
If you turn to weak laypeople, they can ruin the sale of the object. Therefore, it is important to make sure that a contract is drawn up exclusively with a highly qualified specialist.
Who benefits from the document?
Drawing up an agreement on the exclusive right to sell real estate is beneficial for both participants in the process.
For the immediate owner, the benefit lies in the fact that he does not have to deal with the sale procedure himself, and the commission is paid only by the buyer.
For the firm, such contracts provide guaranteed returns.
Contract structure
To conclude an agreement with a real estate company, the correct contract must be applied, including the necessary information regarding the emerging relationship between the two parties. A sample contract for the exclusive right to sell real estate can be found below.
Usually the agency already has the necessary documentation, so it’s enough to just enter the necessary information about the company itself and its client. To do this, the following data must be entered:
- information about both participants, therefore, the full name of the client must be indicated, as well as the data of the client’s passport, as well as details of the real estate agency;
- lists the rights and obligations arising from the customer and the contractor;
- the duration of the contract is prescribed;
- the subject of the contract, represented by an apartment or other object, which must be sold promptly by a company specialist, is clearly indicated;
- includes the cost of real estate agency services;
- the liability of the parties is given if the customer or the contractor, for various reasons, violates the conditions contained in the contract.
The parties may stipulate the exact cost of agency services, which is paid by buyers. For this, some fixed amount may be used or it may be calculated depending on the selling price of the property.
What additional conditions fit?
The rules for the sale of real estate using an exclusive contract allow you to enter additional points and conditions into this document. Both participants must agree to enter certain information.
The most common additional conditions are:
- accrual of fines in relation to the contractor if he does not want to conscientiously approach his duties on the basis of an agreement;
- describes the procedure for charging fees for realtor services;
- the possibility of automatic prolongation of the contract is indicated if the object is not sold within the established time frame.
If we competently approach the drafting of an exclusive contract for the sale of a property, it is guaranteed that it will take into account all the nuances of cooperation between the property owner and the realtor.
What privileges does the agency have?
If an exclusive contract is drawn up with this company, then on the basis of this document the contractor has certain privileges. These include:
- establishing the optimal price of the object, which will be suitable for the owner, as well as meet the demand in the market;
- the use of different methods of advertising housing, which allows you to choose the most effective methods of promotion;
- carrying out activities related to the legal inspection of housing, as the realtor must make sure that the transaction is legal;
- holding consultations on various issues with the owner of the object;
- direct conclusion of a transaction for the sale of an object.
All the above privileges and rights should be prescribed directly in the contract. The owner of the property must transfer the keys to the property to the realtor, since it will be he who will be engaged in showing the property to potential buyers.
What guarantees are offered to customers?
When buying a home, many people often prefer to contact real estate agencies. This is due to the fact that such companies use the current rules for the sale of real estate. They themselves are convinced of the legal purity of the object, so buyers are confident that they will not face fraud.
If buyers purchase housing from a realtor working on the basis of an exclusive contract, then they have many advantages:
- You can clarify with the realtor various issues related to the purchased property;
- all documents for the transaction are prepared promptly;
- Professionalism is provided by the seller.
The cost of the services of a realtor working under an exclusive contract is the same as with standard cooperation.
Cancellation Policy
Often, citizens have a question how to terminate an exclusive contract, for example, if they find a buyer on their own. If there are no violations by the contractor, then upon termination of the contract the property owner will have to pay a penalty.
You can terminate the agreement without paying compensation under the following conditions:
- the term for which the contract was drawn up ends, and at the same time there is no clause on the possibility of automatic prolongation;
- various violations and conflicting information are identified in the document, therefore, such an agreement is declared invalid by the court;
- If the initiator of the termination of the relationship is an agency, then it pays a penalty to the owner of the object, and also returns all documents received.
Often, lawsuits are ongoing between companies and clients, as realtors do not fulfill their obligations or at the same time delay the procedure for concluding a transaction. Most often, courts side with homeowners. Under such conditions, not only the contract is terminated, but the organization can be held accountable.
Conclusion
Many real estate agencies offer the opportunity for the client to conclude an exclusive contract on the basis of which their property is being sold. Using such a contract has both pluses and minuses for companies and property owners.
It should be a good understanding of what information is necessarily included in the document, as well as what difficulties the parties to the agreement may encounter. The contract is terminated only if there are good reasons, so if just an agency client wants to stop cooperation, he will have to pay some compensation to the organization.