How to win a dispute with a real estate agency?
If the problem cannot be resolved by agreement and peace agreement, it is necessary to act through official means. Before suing a realtor, a claim is sent to the agency's address. The principle is approximately the same as when citizens need to protect the rights of housing shareholders.
Our consumer rights lawyer will tell you how to write a complaint against a real estate agency and where to go with a complaint against a realtor.
How to prepare for a dispute with a realtor?
Before punishing a real estate agency for unfulfilled obligations under the contract, you need to prepare. It is necessary to form an evidence base from all available documents and write a statement. All available documents will be required:
- directly the agreement with the realtor and its copy;
- receipts, checks, receipts confirming the facts of payment. You can also provide bank statements that confirm payment for the agency’s services;
- if any agreements were signed during the cooperation process, they will also need to be attached with copies;
- a statement describing the essence of the claims and requirements that will satisfy the client. It is written in the name of the head of the agency. The data is in the contract.
If the contract was not drawn up, then returning money for the services of a realtor will be a rather complicated process. You will need to prove that an oral agreement was concluded between you. Evidence may include testimony, but remember, witnesses will not be able to prove the fact of transfer of funds, so it is always best to transfer funds to a bank card or current account. You can always make an account statement.
Choosing an agency
Of course, the reputation of the realtor or the company he works for speaks for itself. It is worth giving preference to those companies that have been operating in the market for a long time and are members of professional associations. But you should be wary of agencies offering to move quickly to concluding an agreement.
Conclusion of an agreement
The agreement between the customer and the realtor (contractor) is a key document that defines the entire process of their interaction and their responsibility.
Each agency may have its own form of agreement. The following are also discussed separately with the customer:
- Commission.
- Agency agreements.
- Contracts of assignments.
- Agreements on additional paid services.
The Civil Code regulates relations within the framework of such agreements and determines their content. Mandatory information of the contract is:
- The contractual relationship itself, which is described in the introductory part.
- Subject of the agreement.
- Obligations of the parties.
- Deadlines for their implementation.
- Cost and payment procedure.
- Conditions for termination of the contract.
- Responsibility of the parties.
Each part of the agreement defines the stages of the relationship between the parties.
Unilateral procedure for terminating a contract with a realtor
If you want to terminate the contract, remember that when concluding it, the real estate agency provided for fines and penalties for unilateral refusal. Of course, the civil code in some cases allows a party to terminate a contract unilaterally.
In fact, the agency must prove only its costs incurred to fulfill its duties, and it is these costs that you lose when you terminate the contract. Termination of the contract occurs when a good option appears to sell the apartment without the help of a realtor. You are required to submit notice as follows:
- by post;
- by courier;
- at a personal reception at a real estate agency.
It is best to show the contract to our consumer protection lawyer, he will foresee all the risks for you and find the best solution to your problem.
Necessary guarantees for the consumer of real estate services:
- the contract may be terminated according to the clause of the contract with payment of remuneration to the customer, usually this period is 10 working days
- in case of late termination of the contract, a penalty is paid to the real estate agency
- refusal of real estate agency services, with payment of actual expenses incurred
- the ability to contact other real estate organizations, independently search for clients
We must warn you that refusal to pay interest and penalties implies the agency going to court, so you should work out all possible scenarios. It is also worth noting that the use of encrypted and veiled phrases by a realtor implies misleading the client. The contract must be read by the customer, and the necessary clauses must be deciphered.
ADVICE OF A LAWYER: watch the video on how to file a complaint against a realtor and on other issues
Features of an exclusive agreement
An exclusive contract imposes great responsibility on both the order executor and the client.
Agencies are interested in concluding a paid exclusive agreement with the client for the preferential right to work as executors with a certain property.
This agreement deprives the customer of the right to contact other real estate firms to complete a real estate transaction.
What does a real estate agency agreement oblige? Main obligations of the exclusive agreement:
- from the agency – use of maximum resources and services, advice on all marketing and tax issues, legal “purity” of the transaction;
- from the client – delegation of ownership rights to the agency, providing the opportunity to work without competition.
The framework of the exclusive agreement protects the client from the machinations of fraudsters, contributes to a complete analysis of the situation and the successful completion of the transaction in the interests of the client.
Sample letter of refusal of real estate services
You cited a fairly common formulation about unilateral termination of the contract, but legally it can be considered incorrect from at least two points of view. One should also not hope that the widespread occurrence of this legal error will save one in court - the court will act according to the law, which is confirmed by judicial practice.
Article 9 of the Federal Law of January 26, 1996 N 15-FZ “On the entry into force of part two of the Civil Code of the Russian Federation” determines that in cases where one of the parties to the obligation is a citizen using, purchasing, ordering or intending to purchase or order goods (work, services) for personal household needs, such a citizen enjoys the rights of a party to an obligation in accordance with the Civil Code of the Russian Federation, as well as the rights granted to the consumer by the Law of the Russian Federation “On the Protection of Consumer Rights” and other legal acts issued in accordance with it .
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Sample letter of refusal of real estate services
By granting both parties to an agreement for the provision of real estate services the right to unilaterally refuse it, the Civil Code of the Russian Federation shows a different attitude towards the parties. The point is that the customer (consumer of real estate services, client of the realtor) is under special protection. If he refuses the contract, the adverse consequences are limited to the need to reimburse the expenses incurred by the contractor (realtor). If the contractor (realtor) acts as the refusing party, he will have to compensate the customer (client) for losses in full. In the event that the consumer refuses the contract for the provision of real estate services, he will have to compensate the realtor only for actual damage. When canceling a real estate contract, the consumer may demand compensation for damages, including both actual damage (for example, compensation for expenses associated with searching for a property) and lost profits. Unilateral refusal is a party’s reaction to certain contractual violations. A sufficient basis for terminating a contract for the provision of real estate services may be the assumption of the possible inability of the party, primarily the realtor, to fulfill the obligation assumed. In accordance with Art. 783 of the Civil Code of the Russian Federation, general provisions on contracts (Articles 702-729) apply to an agreement for the provision of paid services, unless this contradicts the articles of Chapter 39 “Paid provision of services” and the specifics of the subject of the agreement. taking into account the provisions of paragraph 2 of Art. 715, it is possible to cancel the contract for the provision of real estate services if the realtor did not start providing services on time or if the consumer, during the provision of services, discovers that the realtor is providing services so slowly that their provision on time becomes clearly impossible.
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The subsequent impossibility of performance may be either legal or factual. Legal impossibility can be created by an act of a public authority, but the actual impossibility is expressed in the fact that the obligation cannot be fulfilled in kind. The criterion for identifying the actual impossibility of execution can be the state of the real estate market.
Ways to advertise real estate services
It’s easier with the editors of newspapers and media websites. You contact the editorial office, namely a journalist or editor-in-chief, and say that you are ready to express an opinion on real estate as an expert, perhaps providing expert articles in exchange for indicating your data (name, position, agency).
- an account is created in both search engines (YaDirect, Google Adwords);
- a certain amount of money is placed on the balance sheet;
- queries that are entered into the search engine by your potential clients are selected;
- requests are grouped by similarity;
- Each group has its own ad;
- settings are made and a bid is assigned for 1 click (transition);
- the ad contains a link where the client should go when he clicks on the ad;
- your ad group is called “Company”, and when ready, it is sent for moderation;
- after approval by the moderator, it begins to appear (you can see an example of an advertisement for real estate services above).
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Cancellation of real estate services
Guided by Article 782 of the Civil Code of the Russian Federation, I unilaterally refuse to fulfill the contract dated... The contract is considered terminated from the moment you receive this letter.” Let us recall that the reason for the unilateral refusal of the contract for the provision of paid services declared on the basis of clause 1 of Art. 782
There is no buyer, when the agency works on the property even for several months, there will be no reward for the realtor for the missing result. a realtor wants money, but cannot work. Sometimes there are ridiculous situations when an agency enters into an agreement with a client to find a buyer or seller, and after finding one, it cannot carry out the transaction itself, as unforeseen circumstances arise. This may be the failure of co-owners to purchase a room in a dormitory or communal apartment, or the sale of premises in common shared ownership, or the inability of the seller to pay off rent arrears, the lack of a technical certificate, the presence of redevelopment and many other situations.
Judicial practice on the collection of remuneration by realtors
In judicial practice, one of the most difficult issues is the issue of determining the moment when the intermediary has the right to remuneration and, accordingly, the issue of the realtor collecting his remuneration.
In the absence of legal regulation, it seems that such a right arises for a realtor at the moment when a real estate transaction is concluded between his client and the counterparty found by the realtor.
It is necessary to take into account that the purchase and sale or rental agreement for residential premises with the person selected by the realtor can (but is not obligated) only be concluded by the client himself (the principle of freedom of contract).
As O. Semushina correctly notes, for the right to remuneration under a brokerage agreement to arise, it does not matter what specific actions the broker performed, the scope of these actions may vary from case to case, the main thing is that through his mediation the transaction desired by the client was concluded [See: O. Semushina B. Basic rights and obligations of the parties to a brokerage agreement in the field of real estate // Law. 2010. No. 1. P. 152].
But in most cases, courts collect debt, qualifying such an agreement as a contract for the provision of services.