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In the modern world, when selling an apartment, people often resort to the help of real estate agencies or private realtors.
But there are often cases when the completion of a purchase and sale transaction is delayed for a long time, and the seller comes to the conclusion that it is necessary to refuse the services of intermediaries. Below we will talk about how to do this correctly and with minimal losses. Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique. If you want to find out how to solve your particular problem, please use the online consultant form on the right or call. It's fast and free!
Where to begin?
You should start by carefully studying all its clauses before concluding the contract. The fact is that the law does not contain the concept of “agreement with a realtor”, and therefore there is no standard example of such an agreement on the market. Each realtor or company usually has an independently developed agreement, which the client is invited to conclude. In most cases, the basis is a service agreement or an exclusive agreement.
The contract itself involves the provision of services. According to it, the realtor is required to carry out actions aimed at selling real estate and finding a buyer. In this case, the contract can be fixed-term or indefinite. Lawyers advise prescribing a period not exceeding 3 months. It can always be extended further. An open-ended contract can lead to the deal dragging on for a long time.
Required documents
To conclude an agreement, you will need to collect a small package of documents. When concluding a contract, the realtor will be required to :
- passport;
- power of attorney from the real estate company indicating powers.
Documents from the real estate agency:
- constituent documents;
- certificate of state registration;
- tax registration certificate.
Documents from the customer of services:
- passport, INN or SNILS - for the seller and buyer of the apartment;
- copies of title documents for the apartment (extended extract from the Unified State Register of Real Estate, a copy of the purchase and sale agreement, etc.) - for the seller of the apartment;
- permission from the guardianship authorities - for the seller of the apartment, if the housing where the child is registered is being sold;
- an extract from the home book, a certificate of absence of debt on utility bills - for the seller of the apartment.
When drawing up an agreement, the original documents can be transferred to the real estate company for storage . But most often, ordinary copies are transferred so that the potential buyer can make sure that everything is in order with the documents.
Before signing the contract, the realtor may also ask for documents important for completing the transaction - a copy of the permission of the guardianship authorities or an extract from the house register. If they have not yet been formalized, then the signing of the contract may be delayed.
Legal regulation
Contractual relations between the seller and the buyer are regulated by the Civil Code of the Russian Federation. Thus, by virtue of Article 782 of the Civil Code of the Russian Federation, the customer has the right to refuse to fulfill a contract for the provision of services for a fee, subject to payment to the contractor for the expenses actually incurred by him. Article 782 of the Civil Code of the Russian Federation. Unilateral refusal to execute a contract for paid services
- The customer has the right to refuse to fulfill the contract for the provision of services for a fee, subject to payment to the contractor for the expenses actually incurred by him.
- The Contractor has the right to refuse to fulfill obligations under the contract for the provision of paid services only if the customer is fully compensated for losses.
Article 32 of the Law of the Russian Federation “On the Protection of Consumer Rights” contains a similar provision. Both of these articles give the client the right to terminate the contract with the realtor unilaterally. However, as can be seen from these norms, the client is obliged to reimburse the realtor for all expenses incurred by him in connection with the search for an apartment for the customer .
Upon termination of the contract, the law no longer imposes any obligations on the customer; accordingly, they cannot be established by the contract. It also follows that threats of fines and penalties in any case will be futile, since in this case they are not provided for by law. If you have any questions, you can consult for free via chat with a lawyer at the bottom of the screen or call by phone (consultation is free), we work around the clock.
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Grounds for termination of an agency agreement
The Civil Code provides for 2 groups of special grounds for termination of an agency agreement (Article 1010 of the Civil Code):
- Unilateral refusal of an agent or principal to execute a transaction, at the conclusion of which the parties did not stipulate the duration of their legal relationship.
- The inability of the agent to further act as a party to the agreement. If the agent is an individual, then such grounds are death, recognition of him as partially or completely incompetent or missing. If the agent was an entrepreneur, then the inability to subsequently act as a party to the agreement may also be due to his being declared bankrupt.
At the same time, general grounds for termination of obligations also apply (Chapter 26 of the Civil Code):
- Agreement of the parties to terminate obligations without any additional actions or with those, for example, by providing compensation.
- Fulfillment by counterparties of their obligations, carried out properly.
- The occurrence of circumstances beyond the control of the parties. For example, the impossibility of fulfilling a contract.
Termination of obligations may be due to other circumstances if the parties have fixed them in the contract.
How to notify an agent of termination?
In order to terminate a contract with a realtor at any stage, the client will be required to send a notice to him indicating the date. The notice can be delivered against signature to an employee of a real estate company or to the realtor himself. Or - send a notification by mail to the legal address of the company, keeping a copy and receipt from the mail. The application must describe the circumstances under which the contract was concluded, and also, if there were any, list the shortcomings in the realtor’s work. At the same time, the notice indicates the date from which the agreement is terminated unilaterally.
How to do it without paying?
As follows from the provisions of the law discussed above, it will be possible to completely avoid payment under the contract in the event of its early termination only if the realtor did not incur any costs as part of its execution. Let us remind you that according to the law, the customer pays only actual costs. Let's look at typical situations that can occur in relationships with an intermediary company.
Advertising costs incurred
One of the most common situations is a realtor’s statement that he has already begun to invest in the actions he has taken. This action is called placing advertisements. However, here it is important for the client to remember that any actions that require material costs must be documented . In other words, if a realtor claims that he spent a certain amount on placing advertisements, he is obliged to provide the customer with the appropriate payment documents: checks, receipts, and so on.
The buyer sold the home himself, and the agent demands a commission
There are cases when, after concluding an agreement with a realtor, he does not fulfill his obligations , however, in order to dull the client’s vigilance, he creates the appearance of hectic work. Sends SMS, calls, reports false information about supposedly potential buyers who have supposedly already looked at the apartment and taken time to think about it.
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.
What is important to pay attention to?
There are a number of important nuances that need to be checked in the contract with a real estate agency.
On the part of the executor, the document must be signed by the director or his deputy who has such authority. If the agreement is signed by an ordinary agency employee, it will not have legal force.
If you have any questions, you can consult for free via chat with a lawyer at the bottom of the screen or call by phone (consultation is free), we work around the clock.
The charter and other documents referred to in the text of the agreement must be publicly available. The subject of the agreement must contain a clear description of the services of realtors and their payment upon completion. It is also important that the property in respect of which the services of realtors will be provided is described in detail, and its characteristics are indicated in detail and unambiguously.
It is important that the real estate agency undertakes to check the property for encumbrances, and also collect all the necessary documents and register it in the event of a purchase.
Completion deadlines must be specified for each stage of the contract. It is also important to specify the list of services for a certain fee, so that the contract does not contain abstract broad concepts, such as “real estate services” in general. All additional fees must be negotiated and depend on additional services. When making an advance or deposit, you need to understand the difference between these concepts. The advance payment is returned upon termination of the contract, regardless of the reasons for termination. The deposit is returned in double size if the contract is terminated due to the fault of the agency, but is not returned if the contract is terminated by the customer himself.
We wrote in detail about the nuances of processing a deposit and advance payment here.
You also need to describe in detail the options for terminating the contract. In particular, can it be terminated unilaterally and what liability of the parties is provided for in this case.
A correctly drawn up contract
The key to successful bilateral termination of a contract is the correct clauses in it. The more accurate and detailed it is, the easier it will be not only for the parties to come to an agreement, but also to terminate the agreement unilaterally. A good contract must have provisions that will allow you to begin the termination procedure without losses or penalties. The text should not contain:
- prohibition on early termination (including unilaterally);
- clauses on fines and other sanctions for termination;
- long-term warranty obligations;
- mentions of third parties who are interested in the operation of the agreement.
Termination of a contract with a realtor unilaterally without paying a penalty or fine
In order to avoid financial losses when terminating the contract, this must be provided for when concluding it. In particular, it is necessary to spell out in detail and unambiguously the possibility of unilateral termination of the contract. Dear readers! We cover standard methods for solving legal problems, but your case may be special. We will help you find a solution to your specific problem for free
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Also, all its points must not contradict the law. The agency cannot intimidate with fines and penalties. It is possible to terminate a contract with a realtor without paying a penalty, because by law he is obliged to return all money, except for that paid for services performed.
When answering the question of how to terminate a contract with a real estate agency for the sale of an apartment, you need to understand that this can be done at any time. To do this you need:
- serve notice of termination to agency employees. You must receive notification of receipt from them;
- send notification by registered mail. It is important to keep a copy of the notice and receipt of the letter.
It is important to use these methods of written notification, since in the event of litigation, they will be evidence of the customer’s actions. Oral messages about termination of the contract will not be taken into account by the court.
As mentioned above, fines for termination of a contract cannot be imposed by themselves. But if the contract states that the customer agrees to pay them in the event of termination of the contract due to more favorable terms of the transaction, then the realtor can apply such sanctions. This once again proves the importance of taking into account all circumstances when concluding a contract.
It should also be remembered that the relationship between customers and service providers is regulated by the Federal Law “On the Protection of Consumer Rights”. This also applies to real estate services. The rights of the customer in this case are protected more than the rights of the agency. He is entitled to:
- Reservation of rights that do not infringe on the interests of the parties to the contract.
- Protection from payment of a penalty upon termination of the contract, since it may worsen his position, which is prohibited by law.
- Refusal of the company's services with payment for services already provided.
- Refund of money by the agency if it did not provide services within the prescribed period.
- In case of termination of the contract, the advance must be returned within 10 days.
If the real estate agency refuses to return the advance payment, it will be fined by court decision.
Useful video
We invite you to watch a video about what you should pay attention to when concluding a contract for real estate services:
The following articles about the purchase and sale agreement may be useful:
- Is it possible to restore the purchase and sale agreement for an apartment, where and how to do it?
- How to correctly draw up a preliminary agreement for the purchase and sale of an apartment?
- Nuances for a communal apartment and dormitory: how to properly draw up a contract for the sale and purchase of a room?
- Nuances of the procedure for registering a purchase and sale agreement.
- Secrets of drawing up a contract for the sale and purchase of a share in an apartment.
- What is a transfer and acceptance certificate under a purchase and sale agreement and how to draw it up?
- How to draw up and conclude a contract for the sale and purchase of an apartment?
- What is an additional agreement to the apartment purchase and sale agreement?
How to terminate an exclusive contract with a real estate agency
If you have any questions, you can consult for free via chat with a lawyer at the bottom of the screen or call by phone (consultation is free), we work around the clock.
Any agency tries to conclude an exclusive contract to work with a specific property. In this case, they receive a monopoly right, that is, the client will not be able to contact other real estate companies to order services for that same house or apartment. Main responsibilities under the exclusive agreement:
- On the agency’s part – ensure the purity of the transaction and advise on all marketing and tax issues.
- On the client’s side, the agency transfers ownership rights, which gives it the opportunity to work without competition with other companies.
Typically, the framework of such an agreement protects the client from fraud, allows you to analyze the situation and conclude a successful transaction.
Termination of such a contract is a rather complicated process. The agencies try in every possible way to avoid this, especially since they often have obligations to several parties to the transaction at once. Therefore, in practice, it is possible to terminate an exclusive contract without paying fines only if there is a gross violation of the law or the terms of the contract by the realtors themselves. But the customer must have documentary evidence of such violations. Selling or buying real estate is a rather complex issue from a legal point of view. When making such transactions, several laws are affected at once, which can be quite difficult to comply with at the same time. An example in this situation is the law on the protection of consumer rights, which allows the user of the service (who is also the seller of the apartment) to cancel the transaction at any time, while only reimbursing the amount of work actually performed. But it’s not just the real estate agency that can become a victim. Clients of unscrupulous companies also often become victims of experienced fraudsters, whose guilt can be quite difficult to prove. In order not to become a victim of circumstances, in this situation it is important to correctly draw up an agreement with a real estate agency, and how to terminate it should be specified in a separate clause. It is important to foresee several key points in advance:
- all stages of the transaction must be carried out under the strict supervision of a qualified lawyer, and the seller of the apartment is not recommended to use the services of a lawyer provided by a real estate agency;
- It is important for the seller to consider the question of how to terminate the contract with the real estate agency without paying a fine, for which this procedure should be specified in the contract for the sale of real estate;
- To eliminate the possibility of delays in the entire procedure for selling a house or apartment, an agreement with a legal entity must have a clear validity period. Then you won’t have to rack your brains over the question of how not to renew your contract with a real estate agency.
- You should carefully consider the choice of a realtor, for which it is advisable to study the history of the company, read customer reviews and make a request about this organization to the tax and other services in order to verify the authenticity of the company’s actual work and the purity of transactions.
Underwater rocks
The contract for the provision of real estate services is drawn up by the company, and the customer agrees to its terms or not. Corrections and additions to the contract are extremely rarely allowed. Therefore, the text of the agreement should be studied very carefully.
Please pay attention to the following points:
- deadlines for fulfilling obligations (the contract should not be of unlimited duration);
- the payment procedure and the final cost of services (there should be no vague wording about services that may require additional payment);
- a ban on communication with the buyer before the transaction (this requirement is illegal and often only indicates the non-transparent work of the realtor);
- fines for the customer for any reason, for example, for disrupting the viewing, etc. (an enslaving agreement is unfavorable for the seller or buyer of real estate);
- prohibition on contacting other realtors (this is only possible when drawing up an exclusive agreement).
For a real estate seller, the most beneficial agreement is one in which settlement with the realtor is made at the time of the transaction. In this case, he does not lose the deposit if cooperation does not work out and can calmly choose between 2-3 realtors - whoever brings the buyer will pay him.
Please note that not all realtors carry out verification of the legal purity of the transaction . Many require additional payment for this.
The contract proposed by the realtor protects, first of all, his own interests. Therefore, pay attention to suspicious items related to fines, loss of deposit and other possible expenses.
Expert opinion
Vasiliev Oleg Borisovich
Many years of experience in various areas of law
Regarding the topic discussed in the article, it is necessary to understand two fundamental things. Firstly, the owner or buyer hires an intermediary to carry out a transaction for the sale or purchase of real estate due to the inability, for one reason or another, to do it themselves. Secondly, within the limits of the requirements of the relevant provisions of the Civil Code of the Russian Federation and the Law on the Protection of Consumer Rights, the contract, in this case, the provision of services (real estate) cannot detract from the basic principle of the Civil Code - freedom of contract. In practice, this means, in the second aspect, that in the absence of an adopted and valid law on real estate activities, the so-called standard contracts can only be of a recommendatory nature. This opens up the possibility for the client to make amendments to it at his own discretion, but within the framework of current legislation (that is, the main points listed in the article above).
Thus, if an intermediary (realtor, real estate agency) insists on the immutability of the contract, the impossibility of making any changes to it, allegedly referring to the law, then most likely there are reasons not to trust such a person (organization) and think about options searching for another. Especially in case of categorical refusal. However, theoretically, the law fully allows for appealing such refusals through the courts. It’s just that in a practical sense, this is not only a considerable waste of time, but initially the relationship can be considered damaged, and the result is unpromising.
The first aspect is associated with the fact that if the owner/buyer does not have the time, desire, or necessary knowledge (legal nuances of real estate transactions, the real estate market) to independently search for a real estate property or sell it, he delegates this by concluding an agreement for the provision of relevant service. That is, the work performed in this case requires payment. Therefore, such an agreed minimum must be present in the contract (a specific amount or actual costs incurred, supported by documents). Cases when the client ultimately finds a buyer/seller himself should also be described, so that questions on this topic do not arise in the future. It is worth reflecting the payment components and terms as specifically as possible.
As for penalties and fines, one should still rely on the current legislation (primarily on the refinancing rate established by the Central Bank of the Russian Federation, since this is a criterion clearly accepted by the court).
Thus, if a potential client does not have an understanding of not only the real estate market, but also the legal aspects of concluding an agreement for the provision of real estate services, then additional legal verification by professionals will clearly not be superfluous. Especially taking into account the rising cost of real estate.
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The emergence of controversial situations
Currently, market participants note a general trend towards a decrease in the occurrence of controversial issues when making real estate transactions. However, some still continue to exist, creating a negative reputation both for real estate agencies and for the purchase and sale procedure itself with the participation of an intermediary. On the client’s side, the question most often arises is how to terminate a contract with a real estate agency for the sale of an apartment, what actions need to be taken and what documents to draw up in order to avoid penalties. There is no clear answer to this question, since in many ways the very possibility of such an action and its consequences are determined by the conditions specified in the contract itself. There are several reasons why a client may request to terminate a transaction:
- Violation of the law, fraud or violation of contract terms on the part of the real estate agency. Before starting paperwork on this point, you should find out whether it is possible to terminate the contract with the real estate agency based on the data that the client has. Since when the case is considered in court (if the realtor decides to recover the amount of his remuneration in this way), they may not be enough, or this will not be considered a violation of the law. An example in this situation could be the amount of the transaction, which is fixed by agreement in a certain currency, which may depreciate in the process of searching for a buyer. In this case, the client is obliged to sell the apartment at the price specified in the contract, especially if it is an exclusive contract for the sale of real estate. The realtor’s demands in this situation are not illegal if the terms of the contract did not stipulate recalculation of the final price if the exchange rate of a particular currency falls. It should be noted that the law is on the side of the consumer, who can refuse the service by simply refunding the actual part of the service provided. However, in some cases this amount may be zero. Therefore, real estate agencies often resort to procedures such as payment for individual stages of work, which causes additional difficulties when drawing up a contract, and the client has more difficulties with how to properly terminate the contract with a real estate agency.
- No need to sell real estate. The client may face such a situation if he himself finds a buyer for his house or apartment, or the need to sell suddenly disappears for another reason. In such a situation, the client first needs to notify the real estate agency about the current situation, after which it is best for the parties to resolve controversial issues through contractual means. If the agreement was not exclusive, then the question of how to terminate an agency agreement with a real estate agency will not cause any particular difficulties, since the maximum costs that the apartment seller will incur are the agency’s remuneration, which may not be paid in full.
- Force majeure circumstances. If this clause was spelled out in the contract, then it can play into the hands of either party, depending on the situation. Under certain conditions beyond the control of the parties to the agreement, the agreement may be terminated, and with them the obligations of the responsible persons. For a client, the presence of force majeure may be the answer to the question of how to terminate a contract with a real estate agency and return the money, leaving the agency without remuneration.
Exclusive agreement
If you have any questions, you can consult for free via chat with a lawyer at the bottom of the screen or call by phone (consultation is free), we work around the clock.
This type of agreement provides for the complete transfer of the right to sell an apartment to a real estate agency, so that the client does not have the right to interfere in the sales process or sell the apartment without the participation of the agency. How to terminate an exclusive contract with a real estate agency is one of the most common questions in the field of real estate trading, since the purchase and sale procedure in this case may affect the financial interests of several parties. For example, when completing such a transaction, the intermediary may also undertake strict obligations to the buyer, and in case of failure to fulfill them, incur considerable losses associated with penalties. Therefore, when concluding an exclusive agreement, the realtor tries to eliminate the question of how to terminate the contract with a real estate agency for the purchase of an apartment, while giving maximum guarantees to the client that the transaction will be completed efficiently and on time. Since terminating an exclusive agreement is a very complex procedure, and the penalties can be very large, it is recommended to enter into such an agreement only for those who have finally decided to sell the property, since the only significant condition for terminating such a transaction may be a gross violation on the part of the realtor. >>>
Summary
- How to write a statement of termination of an exclusive contract with a real estate agency.
- Publications
- Agreement with a real estate agency
- Terminate a contract with a real estate agency
- Agreement with a real estate agency for the sale of an apartment
- How to terminate a contract with a real estate agency
- Termination of a contract with a real estate agency
Questions
1. How to write a statement of termination of an exclusive contract with a real estate agency.
1.1. You notify in writing that from such and such a date, on the basis of clause 1 of Art. 782 of the Civil Code of the Russian Federation, you refuse to fulfill the contract numbered such and such on such and such a date. Send to the agency by registered mail with return receipt requested, keep the postal documents and the 2nd copy of the notification for yourself.
2. This question: We gave the original documents for the apartment to a real estate agency, entered into an exclusive agreement with them for the provision of services (search for buyers), and borrowed a sum of money from them under a regular loan agreement, we no longer want to work with them, how can we take back ours? documentation? They ask to pay the penalty under the contract and return the loan, this is not possible now, how can they seize the documents?
2.1. Hello, Vitaly! Contact law enforcement. This is illegal banking activity. They have no right to withhold documents. You can obtain duplicate documents from the authorities where they were issued to you, and make a new cadastral passport. But where is the guarantee that realtors will not use your originals for personal gain?!
2.2. Good evening! We need to look at your documents!
2.3. Hello Vitaly. What did you think earlier? You need to give money and only then receive documents.
2.4. Vitaly, write a request to terminate the contract, Art. 450 of the Civil Code of the Russian Federation, if they do not agree to terminate and do not voluntarily return the documents, then it is necessary to go to court, Art. 3 Code of Civil Procedure of the Russian Federation. Obligations under the loan agreement Art. 807, 810 of the Civil Code of the Russian Federation, do not depend on the contract for the provision of services.
2.5. Vitaly, hello. Termination of the service agreement cannot in any way affect the timing of the return of funds under the loan agreement. These are two different agreements that are not related to each other. You must repay the money under the loan agreement within the period specified in the agreement. The agency has no right to demand their return before this period. As for the service agreement, you can cancel it at any time. The agency is obliged to return to you the amount paid (if money was paid) minus the cost of the services actually rendered. There can be no talk of any penalty - the law “On the Protection of Consumer Rights” does not provide for it in this case. You need to send a notice of cancellation of the contract, indicating in it the requirement for the return of documents.
3. Please terminate the exclusive agreement with the real estate agency for the sale of the apartment, but a photocopy of the exclusive agreement remains with the agency. Can an agency with a photocopy go to court?
3.1. Hello, it can, but the court will require the original or other documents confirming the execution of the contract - for example, the fact of payment of the contract price, correspondence, etc.
4. Is it possible to terminate an exclusive contract with a real estate agency without paying the fines specified in the contract?
4.1. It is impossible without paying a fine if the contract establishes a fine. However, you can challenge the enslaving deal if the fine is too high.
4.2. You can terminate an exclusive contract with a real estate agency - send it to them by email. Fines in such agreements are illegal.
4.3. This may depend on the reasons why you want to end the contract. By law, you have the right to refuse to fulfill the contract at any time, subject to payment to the contractor for the actual costs incurred. Of course, if they are confirmed.
5. I entered into an exclusive agreement with a real estate agency for the sale of an apartment, but I changed my mind about selling because life circumstances have changed, do I have to pay anything to the agency, the agreement says payment only after the transaction and there is nothing about “changed my mind.” tell me how to behave.
5.1. You are obligated to reimburse only those costs incurred by realtors in executing your instructions. Write them a letter of refusal of their services. Good luck.
5.2. Good afternoon, submit an application for unilateral termination of the contract. According to the Civil Code of the Russian Federation, you will have to reimburse the services actually provided to you.
6. How to correctly terminate an exclusive contract with a realtor or real estate agency for the sale of an apartment if the term expires?
6.1. To talk about possible termination of the contract, you need to familiarize yourself with its terms. Contact a lawyer for an in-person consultation.
6.2. It is necessary to look at the terms of the contract for its automatic extension and the procedure for termination established by the parties. It may be necessary to give notice of termination, or perhaps upon expiration of the term the obligations of the parties will cease.
6.3. How to correctly terminate an exclusive contract with a realtor or real estate agency for the sale of an apartment if the term expires? Send this agreement to any lawyer on this site, he will, by agreement, explain to you the conditions and the possibility of termination! Good luck!
6.4. Draw up a termination agreement or unilaterally refuse by sending a notice to the real estate agency.
7. I entered into an exclusive agreement with a real estate agency for the sale of my apartment for 3 months. Can I terminate the contract early if I am not satisfied with the agency’s work and how to do this?
7.1. Sure you can. You must write a notice of termination of the contract.
8. We entered into an exclusive agreement with a real estate agency. The agency violated the contract - their agent did not come to a single showing. Now that I refused their services because of this, they are demanding compensation from me. Is this legal and what should I do?
8.1. no, it's illegal. You can terminate the contract by writing a statement, Article 32 of the Law on the Protection of Consumer Rights
8.2. It's not legal, you can terminate the contract