The brokerage agreement: clauses that protect you before you sign

Why must the agreement be written?

A verbal agreement seems easier but does not protect you. If you disagree with the broker about commission, term or who introduced the buyer, you will have nothing to rely on. A written agreement sets out rights and obligations clearly from the start.

Brokerage and advertising rules also require a written agreement between owner and broker before a property is advertised, and it may be registered on official platforms. A broker who wants to advertise your property without one is usually breaking the rules.

Parties and property details

The agreement starts with clear details: your name and ID or those of your representative under a power of attorney, and the broker’s name and FAL licence number, or the company and its representative. Then the property: type, location, deed number and area.

Check the licence number is correct and valid, and the property details match the deed — errors here can hold up the advertising or the deal later.

Type of brokerage: sale, letting or purchase

State exactly what you want from the broker: selling, letting, managing, or finding you a property to buy. Each has different obligations and commission. If you want more than one service, write each with its terms.

A broker acting for you in a sale works for the best price for you; a buyer’s broker represents the buyer. If one broker acts for both sides, you should know from the start and have it in writing, so you understand whose interest they serve in negotiation.

Asking price and changes to it

Write the asking price the broker will advertise and, if you wish, the lowest price they may present to you without checking back. Agree that any change to the advertised price needs your written approval.

Remember the asking price is not the sale price: the decision to accept any offer is yours alone, and the agreement should not oblige you to accept an offer you do not want.

Commission

Write the commission rate or amount, its basis, who pays, when it is due and whether it includes VAT. State what happens if the buyer withdraws after acceptance or if you sell privately. Read broker commission explained.

Term and exclusivity

Set the term with a start and end date — an open-ended agreement can tie you up for a long time. State whether it is exclusive: under an exclusive agreement you do not use another broker during the term, and the broker may earn commission even if you sell privately, depending on the terms.

Read exclusive vs non-exclusive brokerage to see which suits you. Do not sign a long exclusive agreement with a broker you have not tried.

The broker’s obligations

Write clearly what the broker commits to, for example:

• Obtaining the advertising licence and advertising through named channels.
• Photography, and who pays for it.
• Organising and attending viewings, and checking buyers are serious.
• Presenting every offer to you in writing, without withholding any.
• Regular reports on enquiries, viewings and buyer feedback.
• Following procedures through to transfer or lease registration.
• Keeping your details and the property keys confidential and secure.

Your obligations

The agreement sets out your obligations too: giving accurate information about the property and its known defects, allowing viewings at reasonable times, telling the broker if your circumstances change or you decide not to sell, and not using another broker if the agreement is exclusive. Read these carefully and do not agree to what you cannot keep.

Termination

Ask: how do I end the agreement before its term? Is notice required? Is compensation due? What if the broker does not keep their promises? A good agreement lets you end it if the broker breaches their obligations, and makes clear what, if anything, they are owed for their work.

Write too what happens after the term ends: is the broker owed commission if you sell to a buyer they introduced during the term? For how long?

If the property has more than one owner

If the property is owned by more than one person — heirs or partners — all owners should sign the agreement, or someone representing them under a valid power of attorney that expressly allows it. An agreement signed by one owner alone may not be enough to advertise or sell and can cause disputes between owners later.

Agree among yourselves before signing on the minimum price, who talks to the broker, and who attends viewings and the transfer, so the deal does not stall once the broker finds a buyer.

Agreements for letting and property management

For letting, write the asking rent, the lease length you accept, the tenant requirements you want and who registers the lease on the official platform. For property management, write the services in detail: rent collection and when it is passed to you, maintenance and the spending limit that needs your approval, reports, and handling late payers.

Read renting out your property before signing.

If there is a dispute

Start with the wording of the agreement, then talk to the broker frankly — many disputes come from misunderstandings. If that does not resolve it, put your concerns to them in writing and keep a copy. You can turn to the relevant authorities under the rules if needed.

Checklist before signing

• The FAL licence number is correct and valid.
• Property details match the deed.
• Commission, who pays and when it is due are clearly written.
• The term has dates, and exclusivity is clear.
• The broker’s obligations are written, including reporting.
• Termination and post-term terms are clear.
• You have a signed copy of the agreement.

Red flags

• The broker refuses or delays a written agreement.
• The agreement has no term, or a very long one.
• Commission is due before the deal completes without a clear reason.
• Clauses oblige you to accept any offer that reaches a certain price.
• You are not given a copy after signing.