Cooperation with an agent in real estate trading
An agent in real estate trading is a natural person having a professional license assigned within the procedure set out in the regulations of the Act on real property management. The license is given by the Minister of Infrastructure. The professional title "Estate Agent" is subject to legal protection. In order to obtain the license of a real estate agent, a candidate should have higher education and complete postgraduate studies in real estate agency or have higher education related to real estate management, as well as serve accordingly documented internship. Furthermore, the person applying for the license must not have criminal record and have full capacity to be a party in legal acts.
The awareness of many customers about the work that an agent performs in real estate trading is shaped by public reports and is usually limited to the information about what the agent did not do. Meanwhile, the scope of an agent's responsibilities is enormous, and often agents themselves do not inform their customers about all activities which they perform. The Act on real estate management defines "the Code of agent's duties", who, among others, has the obligation to perform the agency activities with particular diligence, follow legal regulations, professional standards, the rules of professional ethics, follow the principle of interest protection of the persons for the benefit of whom the activities are performed, have insurance policy against civil liability, constantly improve professional qualifications.
The scope of activities of a real estate agent include e.g.
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Checking legal status of the real estate;
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Checking documents owned by the customer;
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Checking records in state and district registers;
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Determination of documents necessary for implementation of the transaction;
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Preparation of a description of the facility on the basis of the seller's statement;
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Verification of the description through individual inspection;
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Preparation of photographic documentation;
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Identification of advantages and disadvantages;
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Checking the condition of debt and encumbrances on the real estate:
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Determination of the most effective and attainable price of the real estate:
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Comparison of the offer with the last real properties sold on the local market;
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Familiarizing with transactional prices of similar real properties;
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Determination of the up-to-date status of the market - demand and supply;
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Preparation of an advertising description of the offer;
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Preparation of methods and places of advertising;
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Preparation of advertising materials;
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Buying the advertisement in selected mass media;
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Response for inquiries from the advertisements;
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Inputting the offer into the IT system of the company and making it available for other agents for sale
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Trips to the transaction spot in order to present offers to clients
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Organization of meetings of the clients and assistance in reaching agreement;
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Planning the method of organization of the transaction, deadlines of particular activities;
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Assistance in determination of the contract conditions, protecting interests of the parties;
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Gathering necessary documents, discussing the transactions with the notary.
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Participation in handover of the real estate, preparation of an issuance protocol.
Agents perform all these activities at their own cost from the moment of signing the contract of agency. The agent receives remuneration (commission) no sooner than on the agreed stage of implementation of the contract, if the transaction actually occured owing to the agent's activity.
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Agency contract
Agency contract is a contract for provision of services, which according to the Act of 21 August 1997 on Real Estate Management shall be deemed invalid unless made in writing. In the contract of agency, the agent undertakes to make activities for the client aiming at conclusion of agreements (among others, sale contracts, purchase, lease, rental, rent of the real estate) as specified in Article 180, passage 1 of the Act on real estate management, and the client undertakes to pay remuneration to the agent .
In connection with the concluded contract of agency, the agent professionally responsible for its execution has the right to inspect, as well as to collect relevant extracts and certificates included in:
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the real estate register;
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the real estate cadastre;
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the register of ground utilities networks;
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valuation tables and maps;
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local plans,
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studies of conditions and spatial management directions for communes;
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decisions which concern building conditions and land development;
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population records.
We can distinguish two kinds of agency contracts in real estate trading:
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open agreement
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agreement with exclusivity clause
Open agreement – the owner reports desire to sell or rent his real estate to several offices, thereby entering into several contracts of an open type. Clients assume that this way they will sell the real estate faster, because more people are involved in the sale. However, the effect of such proceedings is most often reverse. The agent, instead of advertising the offer, hides it from others, being afraid that as a result of this type of advertising other agents will also sign an agreement with the client. And only one of the agents will be given the commission - the one who sells or none - if the client sells the real estate himself.
Therefore, the agent's chances to receive the commission decrease when the offer is advertised better. Additionally, as a result of signing several open agreements, different descriptions and different prices of the same real estate appear on the market. For many potential customers the real estate registered in several or a dozen or so offices is no longer interesting.
Agreement with exclusivity clause – is an agreement which grants the agent exclusive right to offer the given real estate as the object of transaction. Then, the agent has the guarantee of obtaining commission if the sale is conducted well and the real estate is eventually sold. The agent does not have to be afraid that the offer will be taken by other agents, so he advertises it and makes available to all clients, as well as other agents, who will receive their commission from the buyer. The agent substitutes the client in all activities related with the sale. The client's role is limited to acceptance of the agent's activities and providing relevant documents. The agent quickly and precisely informs about the offer the highest number of people, both potential customers and other agents. The agent , throughout the whole period of the sale, incurs the costs of the real estate advertising. Broad advertisement - is the possibility of: rapid sale, selecting the best buyer, obtaining the best price. The offer is well and minutely described, with photographs. The clients, watching a well described offer on the Internet, take an initial decision on acceptance of the offer already at the computer. The seller thus may avoid unnecessary visual inspection of people who are seeking something else. Only one agent is responsible for the sale before the client - the one who was selected and is trusted. Consequently, there are no different prices for the same real estate on the market. The client saves time, by contacting only one agent and therefore has better control over the process of sale. Loses no time on contacts with many agents - the agent running the sale contacts them.
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List of documents necessary at the sale of a real estate
Sale of a real estate is very precisely specified by legal regulations, is subject to numerous hazards and related to different taxes and fees, and therefore involves the need to collect many documents. We have prepared for you a list of documents necessary at sale of different real estates, however, due to specific character of each transaction, the list is verified each time and individually agreed with the Client.
Sale of an undeveloped land (a plot):
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purchase base,
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if the basis for purchase is inheritance or donation – a certificate from the Tax Revenue Office about settlement of the tax on inheritances and donations
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up-to-date extract from the land and mortgage register,
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up-to-date extract from the land register,
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map extract from the registry map,
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copy of the basic map,
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decision on the amount of property tax,
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certificate from the office of the commune or city concerning the intended use of the plot in the local spatial development plan or Study of the Conditions, possibly the decision on building conditions,
Sale of land estate with buildings (house on the plot):
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purchase base,
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if the basis for purchase is inheritance or donation – a certificate from the Tax Revenue Office about settlement of the tax on inheritances and donations
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up-to-date extract from the land and mortgage register,
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up-to-date extract from the land and buildings register,
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map extract from the registry map,
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photocopy of the basic map,
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up-to-date information on intended use of the plot in the local development plan,
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technical documentation of the building,
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documents of the notice of construction completion or permit for use,
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decision on the amount of property tax,
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a certificate of absence of registered persons,
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at sale of a house during construction or extension, the building permit and the building log will be additionally necessary.
Sale of co-operative apartment (of the co-operative right of ownership to premises)
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purchase base,
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if the basis for purchase is inheritance or donation – a certificate from the Tax Revenue Office about settlement of the tax on inheritances and donations
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up-to-date extract from the land and mortgage register (if established),
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valid certificate confirming no arrears in the rent,
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certificate of absence of persons registered in the flat,
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up-to-date bills for utilities,
Sale of premises (apartment):
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purchase base,
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if the basis for purchase is inheritance or donation – a certificate from the Tax Revenue Office about settlement of the tax on inheritances and donations
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up-to-date extract from the land and mortgage register,
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up-to-date certificate issued by the administrator of the building, confirming that the property does not have arrears under operating fees,
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certificate of absence of persons registered in the flat,
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up-to-date bills for utilities,
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Useful forms for download