An agreement for the provision of real estate services is an agreement under which one party, on behalf of the other party, carries out activities to find or sell real estate.
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This agreement is a type of transaction for the provision of services for a fee; therefore, when drawing it up, you should be guided by the rules established by Civil Legislation.
Subjects under the agreement can be individuals and legal entities. The parties to the agreement are called the Customer and the Contractor.
Services under the contract mean the Customer’s instructions related to the search for real estate for rent, purchase or sale.
The above mentioned transaction is concluded in simple written form. In this regard, below we will analyze in detail how such a document is drawn up, and what nuances you should pay attention to when preparing it.
Agreement for the provision of real estate services
Kurgan
September 1, 2023
Realtor, represented by General Director Artemov Artem Evgenievich, acting on the basis of a Power of Attorney, hereinafter referred to as the Executor, on the one hand, and Stepanov Nikolay Aleksandrovich, born on November 8, 1991, living at the address: Leningrad region, St. Petersburg, st. Pervomaiskaya, 996, building 7, apartment 481, passport: number 0000 series 000000, issued by the department of the Federal Migration Service of Russia for the Leningrad region in the city of St. Petersburg on November 8, 2011, hereinafter referred to as the Customer, on the other hand, have entered into this agreement as follows:
The preamble states:
- type of transaction;
- date, month and place of conclusion of the agreement;
- names and roles of Counterparties;
- series and number of the citizen’s passport.
When concluding any agreement, it is necessary to specify provisions related to the essential terms of the agreement, otherwise the agreement will not come into force. In our situation, these conditions are:
- item;
- cost and payment procedure for services provided;
- obligations of counterparties.
How to draw up an agency agreement
Agency agreement No.___With. Sergievskoye, Mtsensky district
"____"____________ 2021
JSC "Agrofirma Mtsenskaya" represented by General Director Zhernov Nikolay Aleksandrovich, acting on the basis of the Charter, hereinafter referred to as the "Principal", on the one hand, and __________________________________ represented by ____________________, hereinafter referred to as the "Agent", acting on the basis of ________________, on the other hand , with the simultaneous mention of “The Parties” have entered into this Agency Agreement (hereinafter referred to as the Agreement) as follows:
1. The Subject of the Agreement
1.1. Under this agreement, the Agent, for a fee, on behalf of, on behalf of and at the expense of the Principal, undertakes to carry out legal and other actions related to the search for potential sellers, hereinafter referred to as the “Supplier”, for the purchase of commercial bulls of the black-and-white breed in the amount of 240 heads with an average live weight of 1 head 180 kg, hereinafter referred to as “Animals” or “Cattle” and owned by the Supplier. The Principal undertakes to accept what has been performed under this Agreement and to pay the Agent remuneration in the amount and terms provided for in this Agreement. Animals must meet the requirements established by this Agreement.
1.2. The sale of Animals into the ownership of the Principal is carried out by concluding a purchase and sale agreement between the Principal and the Supplier found by the Agent.
1.3. The parties to the Agreement have established the following requirements for animals upon further concluding a sales agreement/contract between the Principal and the Supplier (hereinafter referred to as the Agreement):
- the livestock of animals sold by the Supplier belongs to the Supplier by right of ownership, has not been sold, pledged, or otherwise alienated, is not in dispute and (or) under arrest, and is not burdened with any other obligations to third parties;
- the livestock of animals sold at the time of conclusion of the Agreement between the Principal and the Supplier are clinically healthy animals (confirmed by veterinary certificate Form No. 1).
1.4. The cost of animals is 183 rubles per kilogram of live weight and is determined by weighing at the time of delivery, including 10% VAT.
The indicated cost includes all expenses associated with the sale of animals, including tax deductions and other obligatory payments and expenses associated with obtaining veterinary certificates for animals from authorized bodies (institutions), expenses for vaccinating animals against invasive and infectious diseases, and research on veterinary welfare, services for quarantining animals within the period established by the veterinary legislation of the Russian Federation, preparing the necessary documentation for transporting animals and transporting animals to the location of the Principal.
Terms of payment for animals by the Buyer: advance payment - 50% 3 days before shipment, final payment on the day the livestock arrives at the Principal’s territory.
1.5. The rights and obligations under a transaction with the Seller, concluded with the help of the Agent, arise directly from the Principal.
1.5.1. The Agent is responsible for the sag of livestock that occurs after the Animals are accepted for transportation and before delivery to the Principal. In this case, the Agent compensates the Principal for the cost of the missing cattle, based on its price equal to 183 rubles. for 1 kg.
1.6. This agreement is concluded for the period until the Parties fulfill their obligations.
1.7. The Agent carries out the actions provided for in clause 1.1 of this Agreement on the territory of the Russian Federation.
1.8. The Agent's instructions under this Agreement are considered fulfilled in full under the following conditions: a Sales and Purchase Agreement for the purchase of animals is concluded between the Principal and the Buyer, and the animals are transferred to the Buyer under the concluded agreement.
2. Rights and obligations of the Agent
2.1. Under this Agreement, the Agent undertakes:
2.1.1. Carry out, on behalf of the Principal, a search for Suppliers interested in selling animals that meet the conditions of clauses 1.1 and 1.3 of this Agreement;
2.1.2. On behalf of the Principal, conduct preliminary negotiations with potential Suppliers;
2.1.3. Assist the Principal in concluding contracts with the Supplier;
2.1.4. Upon receipt of information from the Supplier about the intention to conclude an Agreement for the supply of animals, send a notification by e-mail or fax to the Principal for the purpose of appearing to inspect the Animals from the Seller for compliance with the requirements established by clause 1.3 of this Agreement and agreeing on the terms of the concluded Agreement for the purchase of Animals;
2.1.5. Act as an intermediary between the Principal and the Supplier engaged by the Agent in the event of mutual claims;
2.1.6. Having completed the order, the Agent sends the Principal a report on the work done, indicating all the conditions and amounts in accordance with this Agreement. The report is an integral part of this Agreement;
2.1.7. The Agent's report on the work done is drawn up and sent to the Principal within 10 calendar days based on the results of the completed order.
2.2. The agent has the right:
2.2.1. Consult with the Principal on all issues related to the fulfillment of the terms of this agreement;
2.2.2. In order to fulfill this agreement, enter into a subagency agreement with other persons, while remaining responsible for the actions of the Subagents to the Principal. In this case, the Agent bears all expenses for paying for the services of Subagents at his own expense.
3. Rights and obligations of the Principal
3.1. The principal is obliged:
3.1.1. Timely and fully pay the Agent remuneration for completing the order in the amount and manner established by this Agreement;
3.1.2. Accept information from the Agent and other documents without delay;
3.1.3. Inform the Agent about the conclusion of an agreement/contract with the Supplier found with the help of the Agent no later than 3 (three) business days from the date of conclusion of the said agreement;
3.1.4. Do not enter into transactions with third parties bypassing the Agent, provided that the buyer is found directly by the Agent; if such an agreement is violated, pay the Agent 10% of the cost of the transaction;
3.1.5. Send a written instruction to the Agent indicating all the necessary terms of the transaction. An instruction may be given by the Principal through the use of postal, telegraphic, teletype, telephone, electronic, fax and other communications. The Order is an integral part of this Agreement (contained in Appendix 1 to this Agreement).
4. Payment procedure
4.1. The Agent's remuneration is paid based on the results of the Principal's approval of the report on the execution of the order. The report is approved by the Principal after the transfer of the Animals.
4.2. The amount of the Agent's remuneration under this Agreement is 7 (seven) rubles. 00 kop. excluding VAT for one kilogram of live weight purchased by the Principal.
4.3. The remuneration is paid to the Agent by transfer to the Agent's current account within 5 banking days after signing the report on the implementation of the Agency Agreement.
4.4. Payment of remuneration to the Agent under this Agreement is made in the amount of 100% (one hundred) percent within two days after receipt of 100% of the cattle specified in clause 1.1 of this agreement and shipment.
4.5. All settlements with the Agent are made in rubles.
4.6. The date of fulfillment of the Principal's obligation to pay remuneration to the Agent is the date of receipt of funds to the Agent's current account.
4.7. The estimated total cost of this agreement is RUB 302,400.00.
5. Responsibility of the Parties
5.1. In the event of non-fulfillment or improper fulfillment of obligations by one of the Parties under this Agreement, it is obliged to compensate the other Party for losses caused by such non-fulfillment.
5.2. The liability of the Parties for failure to fulfill or improper fulfillment of other obligations under this Agreement is determined in accordance with the norms of the current legislation of the Russian Federation.
5.3. For violation of the deadlines for payment of remuneration, the Principal shall pay the Agent a penalty in the amount of 0.1 percent of the debt amount for each day of delay.
6. Force majeure
6.1. The Parties are released from liability for partial or complete failure to fulfill obligations under this Agreement if this failure was the result of force majeure circumstances that arose after the conclusion of this Agreement, which the Parties could not foresee or prevent.
6.2. If the circumstances specified in clause 6.1 of this Agreement occur, each Party must immediately notify the other Party about them in writing. The notice must contain information about the nature of the circumstances, as well as official documents certifying the existence of these circumstances and, if possible, assessing their impact on the Party’s fulfillment of its obligations under this Agreement.
6.3. If a Party does not send or untimely sends the notice provided for in clause 6.2 of this Agreement, then it is obliged to compensate the other Party for the losses it has incurred.
6.4. In cases of the occurrence of the circumstances provided for in clause 6.1 of this Agreement, the period for the Party to fulfill its obligations under this Agreement is postponed in proportion to the time during which these circumstances and their consequences apply.
6.5. If the circumstances listed in clause 6.1 of this Agreement and their consequences continue to apply for more than two months, then the Parties shall conduct additional negotiations to identify acceptable alternative methods of execution of this Agreement.
7. Privacy
7.1. The terms of this Agreement are confidential and are not subject to disclosure to third parties.
7.2. The Parties take all necessary measures to ensure that their employees and agents do not inform third parties about the details of this Agreement without the prior consent of the other Party.
8. Dispute resolution
8.1. All disputes and disagreements that may arise between the Parties on issues that are not resolved in the text of this agreement will be resolved through negotiations.
8.2. The period for consideration of the claim is 14 (fourteen) calendar days. The period for calculating the claim consideration begins from the moment the claim is sent to the other Party to the Agreement. The claim is sent to the postal address of the Party to the agreement - the recipient of the claim, specified in section 11 “Addresses and bank details of the Parties” of this agreement.
8.3. If one of the Parties fails to fulfill its obligations under the agreement, as well as the impossibility of resolving disputes through negotiations, the second Party has the right to file a claim with the arbitration court at the location of the Claimant.
9. Modification and termination of the agreement
9.1. This Agreement may be amended or terminated by written agreement of the Parties, as well as in other cases provided for by law and this Agreement.
10. Special conditions
10.1. In order to comply with Art. 54.1 of the Tax Code of the Russian Federation, within the framework of Art. 431.2 of the Civil Code of the Russian Federation The Parties assure and guarantee to each other the following:
10.2. Representatives of the Parties are authorized to complete a transaction under the Agreement;
10.3. To complete a transaction, it is not necessary to obtain the approval of the participants/Board of Directors/General Meeting of Shareholders of the Parties. The transaction is not a major transaction or an interested party transaction for the Parties;
10.4. The parties are duly registered organizations;
10.5. All information about the Parties in the Unified State Register of Legal Entities is accurate at the time of signing the agreement. If in the future a record appears in the Unified State Register of Legal Entities about the unreliability of data about the Party, then it undertakes to enter reliable information into the Unified State Register of Legal Entities within a month or confirm to the registration authority that the information in the Unified State Register of Legal Entities is reliable;
10.6. In relation to them, the registration authority has not made a decision to exclude them from the Unified State Register of Legal Entities as an inactive legal entity and there are no prerequisites for making such a decision;
10.7. They did not make decisions on liquidation, reorganization, or reduction of the authorized capital;
10.8. They do not have signs of bankruptcy, as defined by Federal Law No. 127-FZ of October 26, 2002 “On Insolvency (Bankruptcy)”;
10.9. They are not disqualified persons, and their executive bodies do not include disqualified persons;
10.10. Their registration addresses are not mass registration addresses of legal entities.
11. Final provisions
11.1. In all other respects that are not provided for in this Agreement, the Parties are guided by the current legislation of the Russian Federation.
11.2. Any changes and additions to this Agreement are valid provided that they are made in writing and signed by duly authorized representatives of the Parties.
11.3. All notifications and communications by letter, by telegraph, teletype, telex, telefax or delivered in person to the legal (postal) addresses of the Parties with receipt by the relevant officials.
11.4. This Agreement comes into force from the moment it is signed by the Parties.
11.5. This Agreement is drawn up in two copies having equal legal force, one copy for each of the Parties.
12. Addresses and bank details of the Parties
JSC "Agrofirm Mtsenskaya" Address: 303047, Oryol region, Mtsensky district, village. Sergievskoe Tel./fax: (48646) (region 46) 5-24-09, 6-42-76 INN/KPP 5717060059/571701001 Account number 40702810147170100149 Oryol branch No. 8595 of Sberbank PJSC C/s 30101810300000000601 BIC 045402601 OGRN 1025702655770 | |
Principal: | Agent: |
CEO JSC "Agrofirm Mtsenskaya" ____________________________________ | _____________________________________ _____________________________________ |
M.P. | M.P. |
Item
Provisions on the subject of the transaction appear in the initial section of any document. When drawing up an agreement for the provision of real estate services, the subject is the real estate services themselves. In the text of the document, the section on the subject of the agreement is written as follows:
In accordance with this agreement, the Contractor undertakes, on behalf of the Customer, for the fee agreed upon in the contract, to provide services for the selection and acquisition of real estate owned by Nikolai Alexandrovich Stepanov. The Contractor carries out actions for the selection and acquisition of residential real estate in accordance with legal requirements. The Customer's preferences and other requirements are specified in Appendix 1 to this agreement.
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Price and payment procedure for services provided
This section contains information about the cost of intermediary services provided. You should also indicate in what form and when the payment will be made. Payment can be made in cash or by bank transfer as agreed by the parties. So, the specified section looks like this:
The contract price is divided into a security deposit and the final payment amount after fulfillment of obligations under the contract. The amount of the security payment is 35,000 (Thirty-five) thousand rubles and is paid to the Contractor at the time of signing the document. The final payment amount is 63,500 (sixty-three thousand five hundred) rubles and is paid after the provision of real estate services. All payments are made in cashless form by transferring funds to the bank account of the real estate company.
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Rights and obligations of the parties
The section on rights and obligations is written in order to specify the actions of the Counterparties. Thus, the presence of such provisions in the document gives a clear understanding of how the parties must fulfill their obligations. So, the wording of the provisions of the rights and obligations of the Contractors in the text of the document is written as follows:
The Customer has the right to: Demand that the Counterparty's obligations be fulfilled in strict accordance with the contract. Request information about the performance of the work. The customer undertakes to: Pay for real estate services in accordance with the section on the price of the contract. Do not enter into similar agreements with other persons engaged in such activities. When purchasing real estate, provide written consent. Fulfill your obligations in accordance with this agreement. The Contractor has the right to: Demand payment for the services provided by him in accordance with the section on the price of the contract. Demand proper fulfillment of obligations by the Customer under the concluded contract. The Contractor undertakes to: Provide real estate services for the selection and purchase of real estate. Compile and send reports to the Customer on the results of their work every Monday during the term of the agreement. Act on behalf of the Customer when carrying out their activities. Fulfill your obligations efficiently in strict accordance with the provisions specified in the document.
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Responsibility of the parties
This section identifies provisions on circumstances in the event of which the parties bear financial liability. Below we present typical wording of provisions that can be written in the text of the document:
The parties are mutually responsible for non-fulfillment or improper fulfillment of obligations under this agreement. If the customer is late in paying for services or has not paid in full, he undertakes to pay a penalty in the amount of 1.3% of the transaction price.
Pros for the agent himself
- Reducing the cost of purchasing goods. By concluding an agency agreement, you receive the goods from the supplier for free. You will transfer the proceeds from sales to the supplier, and he will pay you a commission.
- Reducing the tax burden on the simplified tax system. Under an agency agreement, income is only your remuneration, and not all the money that went through the account. For example, you place an advertisement - the client pays money, most of which you transfer to Yandex. It is not profitable to pay tax on the entire amount, so enter into an agency agreement and take into account only your remuneration in taxes.
Pros and cons of working with a realtor
You can both lose and win from working with a realtor. It all depends on where the seller of the apartment turns and how reliable the agency turns out to be.
Pros of working with a realtor:
- quick search for a buyer (usually within 3 months);
- marketing plan for advertising the apartment;
- receiving calls from clients and organizing viewings;
- checking all documents before the transaction.
Before concluding an agreement with a real estate agency, you need to carefully check its reputation, registration documents, as well as customer reviews.
Disadvantages of working with a realtor:
- high commissions (up to 5% of the cost of the apartment);
- risk of fraud (collusion with the buyer or disappearance after transfer of the advance);
- loss of the deposit for early termination of the contract;
- Slow work and minimal customers.
The times of “black” realtors are long gone , but when working with real estate agencies, problems of a different kind may arise. For example, a realtor may have a very small client base and, by concluding an exclusive agreement with such a company, the seller or buyer of an apartment will only waste time.
There are also possible cases of petty fraud, when an agreement is concluded for only one purpose - to receive an advance. Next, the unscrupulous agent simply turns off the phone or imitates the activity without any results.
A good realtor must be officially registered, certified or have professional liability insurance. The company must have a large customer base, established contacts with many real estate sites and an impeccable reputation.
Why do you need to enter into an agreement?
It is mandatory to draw up an agency agreement for the purchase or sale of housing with a realtor . Otherwise, there is a risk of wasting time and money. The agreement specifies in detail the entire range of services that must be provided in exchange for commissions or a fixed payment, as well as liability for failure to perform them.
Realtor services include:
- free apartment assessment;
- marketing plan for promoting the sale announcement;
- searching for a buyer and conducting inspections;
- negotiations with clients and advertising the apartment to them;
- checking all documents and preparing for the purchase and sale transaction.
A real estate agency often deals not only with the banal information of a buyer and a seller, but also provides preparation for the sale of an apartment, collects certificates necessary for the transaction, as well as a legal examination of title documents.
The Guild of Realtors has developed a standard agency agreement, which has undergone legal examination and contains all the important points that describe the relationship between the customer and the contractor. It is advisable to familiarize yourself with it before signing the contract offered by the realtor.
The principal reimburses the agent for expenses
One of the main advantages of a contract for an agent is the minimal cost of its execution.
Firstly, the agent does not spend money on purchasing the goods, because they belong to the principal. And if a product sells poorly, it does not cause losses.
Secondly, the principal reimburses the agent for expenses under the contract. It is possible to set a fixed amount of compensation without taking into account actual costs. Another way is to calculate it based on the agent's actual expenses. Then, in order not to go broke on compensation, it is important for the principal to define in the contract:
- what expenses he reimburses (so that the agent does not include his morning coffee in the list) and their maximum amount;
- documents with which the agent confirms expenses.