There are two types of mediation agreements, standard and exclusive contracts.
You can read about why it is not only important but also necessary to sign this contract when cooperating with the agency at this link. There we have explained what are the most important items of every contract on brokerage and real estate lease, so this time we will only look at the differences between the two mentioned types of contracts.
Therefore, the standard and exclusive contract contain an almost identical form. Both contracts must be signed by the owner of the real estate and the executive director or an authorized person in the agency, with a mandatory seal. Both contracts contain basic elements such as information about the owner of the real estate and the agency, the object of sale or lease, the initial price of the real estate, the obligations of the owner as principal and the agency as an intermediary, commission
and other fees, as well as the termination of the contract and other provisions of importance for legal work.
The standard contract gives the owner the possibility to sell or rent the property independently, as well as to hire several intermediaries. When such a contract is signed, the owner of the real estate is still obliged to inform the mediator about all changes of importance for the legal business, especially those related to changes in ownership and the price of the real estate. If the property is available from several intermediaries, the owner is obliged to give everyone the same price and
to regularly inform them of changes so that buyers are not misled. There are opinions that this contract is more practical for owners because it allows them to work independently on the sale or rental of their property.
An exclusive contract differs from a standard contract in that it contains an exclusive arbitration clause. This means that the real estate owner entrusts his real estate to an agency, but also that, during the duration of the contract, he will not sell it independently or hire another intermediary. Exclusive contracts are the gold standard abroad because the agencies operate professionally and responsibly, so the owners have confidence that the whole process will go well. The advantage of
such contracts for owners is reflected in the fact that it gives them more free time because they are not dealing with the process of selling or letting themselves. Also, they are not obliged to communicate with more than one intermediary, but their real estate is taken care of by one agency, and they are in contact with only one agent. Agencies treat exclusive real estate differently from those for which they have concluded standard contracts, they invest more resources in their advertising
and presentation, which leads to a faster conclusion of the legal deal, whether it is a sale or letting.
The property owner decides which contract is a better option for him, but the pros and cons of both contracts should be considered. When it comes to the standard contract, it allows the owner to sell and rent the property independently and to hire several intermediaries for this, but it does not guarantee that the process will be more efficient and that it will go quickly. If we are talking about an exclusive contract, it does not give the owner the opportunity to sell and rent out the real
estate independently for a certain period of time, nor to hire more intermediaries for that. It is important to know that even in the case of exclusive mediation, it is the owner who decides to whom the real estate will be sold or leased and that he concludes contracts, not the agency he hired as a mediator.
An increasing number of real estate owners decide on an exclusive contract because they believe that this type of contract has more advantages than disadvantages, and most importantly, it saves them time that they can use for other activities. The entire process should be led by professionals whose job it is to minimize risks and reach the best possible agreement for all stakeholders. Before entrusting your real estate to an agency, check the 5 most important items before cooperation.
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