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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Terms found Action for the restoration of ownership Amended dismissal Annuity Appeal against a decision Asset Assignment of Claims (Cession) Austrian Public Employment Service (AMS) Banking secrecy Bankruptcy proceedings BaSAG Book value / carrying amount Branch Brokerage Agreement Building Law Business Business entity Call for Tenders Capitalisation Casual Employment Certification Change in Operations Collective Bargaining Agreement Company Agreement Company Pension Comparison of business assets Compensation Compliance Compulsory enforcement Consumer Protection Act Corporate Reorganisation Act (URG) Corporation Covenants Debt restructuring Debtor Declaration of consent Decree Deferral Discount Dividend Double taxation Double-entry bookkeeping Easement Employee Stock Ownership Equity Equity loan Factoring Fees Act Financial plan Foreclosure sale Foreign-currency loan General partnership General Protection Against Dismissal Global assignment GmbH Group taxation Guarantee Guarantee credit Hidden reserves Hire Purchase Insolvency Insolvency Act Insolvency administrator Insolvency estate Insolvency register Inspection of the Land Register Inventory Land Register Letter of comfort Lien Limited partnership Liquidation Loan Loss Carryforward Maternity leave Merger Natural person Nominal value Option Outsourcing Part-time work Partnership Personal insolvency Pledge principle Preliminary decision on an appeal Progression Prohibition of alienation and encumbrance Prohibition on the repayment of deposits Property income tax Provision Proxy Public Limited Company Reallast Repayment Restriction on Transfer Restructuring proceedings Retention of title Revision Right of first refusal Right of retention Rights in rem Self-consumption Severance Pay Severance Pay new Severance Pay old Shareholder loans Short-time work Silent partnership Skimming procedure Social Plan Sole Proprietorship Standard value Stock Subscription right Superstruction Supervisory Board Tenancy agreement Works Council

Brokerage Agreement

A real estate brokerage agreement is a sui generis contract that is conditionally remunerated and unilaterally binding, as it contains elements of both a free service contract and a contract of mandate. The broker is commissioned by his client to facilitate the purchase or sale of, for example, a piece of real estate, and is to receive a commission if the transaction is successfully concluded. The broker is under no obligation to act, but receives a commission only if his efforts are meritorious and successful. The broker acts in his or her own name and is not authorized to conclude a transaction on behalf of the client without the client’s express consent.

The general rules regarding the freedom of form for contracts apply to the conclusion of a brokerage agreement; however, there are specific consumer protection act for contracts with consumers that must be strictly observed. Accordingly, consumers are entitled to a special right to rescind the brokerage agreement, enhanced disclosure obligations, a maximum term for exclusive brokerage agreements that must be strictly observed, and special protection regarding commission agreements, even if the brokerage is unsuccessful.

In the course of his work on behalf of the client, the real estate agent has various obligations, such as the duty to notify and inform, the duty to protect the client’s interests, the duty to use best efforts in the case of an exclusive agency agreement, and the obligation to pay damages in the event of a breach of contract. In return, the broker is entitled to a commission (if the transaction is successful) and to reimbursement of expenses. The client, on the other hand, must support the broker in his or her brokerage activities and provide the necessary information.

The brokerage agreement terminates upon fulfillment of the assignment, through a direct transaction between the parties, upon expiration of the term, upon revocation of the assignment, upon the opening of bankruptcy proceedings against the client’s assets, and presumably also upon the death of the broker himself. Fixed-term brokerage agreements generally cannot be rescinded during the term of the agreement, unless there is good cause that would make continued performance of the agreement unreasonable.

Learn more about our real estate practice area. Please feel free to contact us for further information.