Useful

This contract is concluded between the customer (seller, buyer, landlord, tenant) and the intermediary agency. It regulates the mutual relations between the two parties in order to achieve the ultimate goal of fulfilling the client’s desire (purchase or sale of property, renting or letting of property) by the intermediary. The conclusion of such a contract is a desirable condition for normal future relationships.

The contract describes the property in a notary deed, reflects the sale / rental price, the term of performance, the remuneration of the intermediary, the rights and obligations of each of the parties and other mutual arrangements.

After the signing of the agency agreement, the Agency guarantees to the client that within a certain period of time it will engage with its offer, will be loyal and will keep it up to date. It undertakes to actively advertise the submitted offer in the daily and periodical specialized editions, through a computer information system linking the real estate companies in a given region or city, to its advertising page in the World Information System – Internet. In this type of advertisement, the client’s offer becomes known in the country and abroad. Each agency has its own advertising policy.

Full checks are also made on the validity of the documents provided in order to avoid the risk of fraud or misuse in order to ensure the normal and lawful implementation of the transaction itself. The ultimate goal is through comprehensive work to find the potential client for the property and complete the deal. The company is morally obliged to mediate until the final result is achieved – confessing the transaction to the Notary or signing the Lease Agreement.

IMPORTANT!

The mediation contract has legal value and protects both the client and the Agency.

WHAT ARE THE FUTURE BENEFITS BETWEEN CUSTOMER AND AGENCY IF THE OFFER IS SUBMITTED AND A CONTRACT CONTRACT IS NOT CONCLUDED

Some of the agencies accept these relationships as normal, but they are hardly working actively on the offer. It is included, for example, in the company database and is only available to customers who visit the Agency and search for a property close to the offer.

Other agencies may not accept the offer without negotiation. And with reason. Why should the intermediary spend money in vain (the costs incurred may not recover) and work for a client who does not trust it. In times of market economy such relationships are not acceptable.

The client is given the opportunity to choose how he will work with the intermediary firm.

AFTER CONCLUDING A RENTAL AGREEMENT, THE AGENCY HAS ANY RESPONSIBILITY FOR INFRINGING RENTAL RELATIONS BETWEEN THE PARTIES

The activity of the Agency ends with the signing of the Contract for Rental Relations between the Lessor and the Tenant.

In the event of breach of contract terms over time, the parties to the contract seek to resolve the issues encountered either through negotiation or by court order.

COMMERCIAL REMEDIATION FOR THE AGENCY – MEDIATOR

For mediation, the client pays a fee to the Agency. Here’s what it is in our country:

1. When buying and selling a property. For our country the commission fee is 3% of the purchase price of the property and is paid by both the Buyer and the Seller – most often upon signing the preliminary contract, but it is possible to negotiate another payment time.

2. For rental relations. It is common practice that the commission fee is a one-time 50% of the monthly rent. It is also paid by the Lessor and the Lessee. This does not mean that this percentage can not be negotiated, especially for large rents. In the various settlements of the country the commission is different and depends on many factors – local and national. There are companies whose offer is 60% and others – with 100% of the rent. Some companies negotiate for one country for free, increasing the percentage of the other. Paying most often happens when the Rental Agreement is signed.

Commissions are not governed by law, but are determined by the market and traditions.

The texts are from the 100 issue “100 questions, 100 real estate replies”, supplemented by the book “200 questions, 200 real estate replies”. Prof. Maria Gajova, Ph.D. Editor: Vasil Stoyanov; Consultants: Daniela Krasteva notary, Eng. Tsvetka Bostandjieva, Lilyana Hristova, Publishing House