Term
Exclusive brokerage contract
Through the exclusive brokerage contract, a real estate agent is contracted by the client in writing to provide real estate services for a specific period of time. In doing so, the client is bound to a certain real estate agent. Unlike with a simple brokerage contract, the real estate agent is obligated to actively seek out interested parties and endeavour to sign a contract to the best of their efforts. If a transaction occurs through their services, the real estate agent is paid the agreed commission. If, in spite of the agent’s appropriate efforts, the brokerage cannot be successful because the client revokes the exclusive brokerage agreement within the agreed notice period, or the real estate transaction is made with the help of another agent, or by the client themselves respectively, the client’s obligation to pay the commission can be agreed (“contractual penalty”).