Real estate service agreement
When an owner decides to sell his property through a professional berlin property agent, different types of contract are available for commissioning the Berlin broker.
Each type of brokerage contract is associated with advantages and disadvantages.
Real estate service agreement – verbal agreement or exclusive contract?
In principle, a brokerage contract can be concluded informally. It is therefore sufficient for the owner a property, to give the berlin property agents a simple verbal or written permission to sell the property. This leaves the seller with the greatest possible freedom and with no obligations. He can parallel try to sell the property on his own, or by simultaneously commissioning more than one berlin property agent informally. In case the owner sells the object to an interested buyer himself, then he owes no commission to the berlin property agents. On the other hand, he cannot expect from berlin property agents a full commitment, since there is only a very small chance that he is going to be rewarded for his sales efforts.
Therefore, dedicated berlin property agents will try to stipulate an exclusive contract with the owner of the property. In the contract is stated that the berlin property agent will commit himself to achieve the aim of the contract, namely the sale of the property. Owners who fear that the berlin property agents will then sell their property at whatever price, just to earn a commission, can be reassured: for the owner subsists no obligation to sell. For this type of brokerage contract there is a further distinction between simple and qualified exclusive contract.
Therefore, a dedicated broker will try to stipulate an exclusive contract with the owner of the property. In the contract is stated that the broker will commit himself to achieve the aim of the contract, namely the sale of the property. Owners who fear that the broker will then sell their property at whatever price, just to earn a commission, can be reassured: for the owner subsists no obligation to sell. For this type of brokerage contract there is a further distinction between simple and qualified exclusive contract.
Simple exclusive contract
In the simple exclusive contract the owner refrains from commissioning other berlin property agents. However, he is still entitled to sell the property on his own to a potential buyer he found, without the broker having the right to claim any commission, neither from the buyer nor from the seller. Such a contract is still not ideal for the berlin property agent. Therefore, he may not exert the maximum possible effort to sell the property.
Qualified exclusive contract
In the case of a qualified exclusive contract, the owner is under the obligation to refer to the commissioned berlin property agents any potential buyer that approaches him directly. The berlin property agent takes over the contract negotiations and the sale, so that no matter what, he has the opportunity to earn his commission. This brokerage contract includes even a provision for indemnification, in case the owner sells the property (during the contract period) through another berlin property agents or directly to an interested buyer. The certitude to get the commission motivates of course the berlin property agent to perform at his best. He will commit himself fully to the sale of the property, in order to achieve the maximum selling price for the client, which in turn determines the amount of his commission. Usually, reputable and dedicated berlin property agents, work with a qualified exclusive contract.