Real estate brokerage
Real estate brokerage
The sale of real estate is a financially significant life-time decision that most real estate clients do not do every day. Therefore, you should not underestimate such real estate transaction and choose a prominent business partner to carry it out. In the joint real estate and law firm JURIS REAL, spol. s r.o. we do our best to be such a trusted partner. We always work based on a written brokerage contract. The sale of real estate is not a purchase of goods for personal consumption, but rather a deal on the order of millions of crowns. Therefore, it is extremely important to have clear rules, to know the rights and obligations of both parties in real estate transaction. A fair brokerage contract protects the property owner as it defines the basic parameters of the transfer of real estate. It sets the price, defines the maximum length of the sale, determines broker's remuneration and at the same time it entitles a broker to offer real estate and negotiate with buyers. The brokerage contract is thus the cornerstone of mutual trust that is important for successful cooperation. The brokerage contract is either exclusive or non-exclusive.
Exclusive cooperation means that the property is offered and sold only by our joint real estate and law firm JURIS REAL, spol. s r.o. In this form of cooperation, we provide a comprehensive service related to the sale of real estate, including, of course, legal and tax assistance. All administrative fees are paid by our real estate firm from our commission. Exclusive cooperation does not mean that a seller loses its potential buyers who are clients of other real estate agency. If a real estate agent from another real estate agency has a purchaser interested in real estate offered exclusively by us, we cooperate with them and split the commission with such a real estate agency. The sale price of the real estate owner remains unaffected. If a reservation fee is paid for the purchase of real estate and the sale is not made for reasons on the buyer's side, the reservation fee will be forfeited. In case of exclusive cooperation, the seller receives a half of the forfeited reservation security. We continue in selling and looking for a new buyer.
And why do we recommend exclusive cooperation?
Exclusive sales seem to be more trustworthy and more professional to potential buyers, guaranteeing a uniform sales strategy; a real estate agent can also strive to achieve the highest sales price. In exclusive cooperation, the property appears in advertisement in single presentation whose quality is controlled by the seller. Exclusive cooperation saves time and energy of a seller who only communicates with one real estate agent and does not care about anything else. The real estate agent is motivated to invest more time, energy and resources in the property because he knows it will be reflected in the sale. In case of doubt, we recommend entering into cooperation for a shorter period of time and then to extend it according to your satisfaction.
Top Five Advantages for Exclusive Cooperation in Real Estate Transfer:
Complete real estate and mortgage service "under one roof";
Reaching higher sales price;
Saving time and energy;
Chances of faster sales due to customised marketing and sales strategy;
Greater motivation and deployment of a real estate agent;
Non-exclusive cooperation means that a real estate owner can offer his property through multiple real estate agencies and, at the same time, sell it on his/her own. If a reservation fee is paid for the purchase of real estate and the sale is not made for reasons on the buyer's side, the reservation fee will be forfeited. In such a case we reduce our remuneration by half of the forfeited reservation fee and continue in looking for a new buyer.
Disadvantages and "real estate" pitfalls of non-exclusive cooperation
Real estate is mostly offered by multiple real estate agencies and for this reason it seems rather untrustworthy to potential buyers. The owner does not have the sale of his/her property under control. It is hard to keep track of what they have agreed on with the real estate agencies. This form of cooperation also creates room for unfair business practices by dishonest real estate agencies. Real estate is not usually offered at a single sales price and potential buyers often push for a lower price with an argument of buying a service from the lowest-priced agency. The non-exclusive form of cooperation is also demotivating for a real estate agent because he/she cannot use all sales promotion tools, and the result is often a piece of good luck.
What do you need to know and prepare in advance when transferring your property?
When selling an apartment in personal ownership, family and apartment buildings, chalets, cottages, land etc.:
The sale of the above listed real estate is a time-consuming issue due to long waiting times at land registry offices and, following the seller and the buyer’s demands (transfer of finances, possibility of using the property, etc.), it is also a demanding activity to be handled by agent. Therefore, we recommend that you use the services of our cooperating lawyer, Mgr. Jan Drobník, or possibly of our corporate lawyer, Mgr. Pavel Ryba. Among other things, they will also advice you on legal procedure when solving the transfer of funds.
You need the following documents:
- an extract from a land registry (an extract relating to the apartment and the whole house is needed in case of a residential unit) and an extract from the land registry map;
- your title deed, such as a contract of purchase, a deed of gift, an occupancy permit, etc.;
- a record sheet with breakdown of services and a property plan are needed in case of the sale of a residential unit.
When transferring an apartment which is in cooperative ownership (transfer of membership rights and obligations):
The transfer of membership rights and obligations (sale of cooperative apartment) is only announced to the housing cooperative, the representatives of the cooperative will just take it into account.
The following legal documents are concluded:
- agreement on transfer of cooperative rights and obligations;
- financial settlement agreement, including escrow agreement.
- a document on legitimate acquisition of membership in the cooperative (or its confirmation by the cooperative);
- a lease agreement;
- the cooperative's confirmation of no outstanding payments to the cooperative; a balance statement of outstanding annuity in case of the unpaid part of annuity;
- a contact to the cooperative’s representative (chairman) (this will accelerate the transfer);
- housing cooperative statutes;
- documents on payments – payments of utility bills, payments to the housing cooperative, or billing of services.