What must be included in a brokerage contract?

Focus on the small print: Analysis and facts

1. The contracting parties and the object

The first and most basic point regarding the content of a real estate agent contract is often the number one source of errors. Who exactly is the client? In the case of a married couple, are they both partners? Is it an estate? The real estate agent contract must name all owners and be signed by all of them (or an authorized representative). The property must also be precisely defined. A correctly worded real estate agent contract should include the address, the cadastral number , and the property size as shown in the land register extract. Only then is it clear what is actually being negotiated.

2. The type of commission: Exclusive or not?

A key aspect that shapes the content of a brokerage agreement is exclusivity.

• Exclusive mandate: You commit to using only this one real estate agent. The terms of the brokerage agreement prohibit you from using other agents. Often, even private sales are restricted.
• Simple task: You are allowed to hire other real estate agents at the same time.

The brokerage agreement must provide clarity on this point. A reputable broker will insist on exclusivity, as they are making an upfront investment. In return, the brokerage agreement must guarantee their full commitment. If this clause is missing from the brokerage agreement , a simple mandate usually applies legally, which can lead to conflicts.

3. The benefits package: What do you get?

Vague phrases like "The real estate agent will endeavor to sell the property" have no place in a real estate agent contract . You're paying a lot of money, so define the services provided. A good real estate agent contract lists the following in detail:

• creation one Market value appraisal .
• Creation of a professional exposé (photos, texts, drone footage).
• Placing advertisements (on which platforms? How often?).
• Conducting site visits .
• Buyer credit check .
• accompaniment to the notary.

If the brokerage agreement specifies these points, you can later check whether the broker has done their job. If these points are missing from the brokerage agreement , a complaint is hardly possible.

4. The commission: amount and due date

The core element of a brokerage agreement is the fee.

• Amount: The brokerage agreement must specify the percentage (usually 2–3% of the sale price) or the fixed price. Important: Is the VAT (currently 8.1%) included or exclusive? The brokerage agreement must clearly state this.
• Due date: When does the money change hands ? The brokerage agreement should stipulate: "Commission is due upon notarization of the purchase agreement." Do not accept any brokerage agreement that requires payment upon reservation.
• Failure: The brokerage agreement must stipulate that no commission is owed if the contract ends unsuccessfully (" No Cure, No Pay").

5. Additional costs and expenses

Costs are often hidden in the fine print. A transparent brokerage agreement separates commission (success fee) from expenses (marketing costs). The content Brokerage agreement should clarify:

• Who Does he pay for the advertisements ?
• Is there a maximum limit (cost ceiling) for expenses?
• What happens if I terminate the contract? Do I have to reimburse the expenses? A customer-friendly real estate agent contract includes expenses in the commission or caps them at a fair amount if the sale is unsuccessful. If this clause is missing from the contract , the agent could theoretically send high bills for advertising, even if the house wasn't sold.

6. Term and Termination

An open-ended contract is a risk. A professional brokerage agreement should include a fixed term, usually 6 to 12 months. This gives you the opportunity to switch providers if things aren't going well. Furthermore, the brokerage agreement must stipulate the termination terms. According to Article 404 of the Swiss Code of Obligations (OR), a simple contract can be terminated at any time, but termination at an "inopportune time" can lead to claims for damages. The brokerage agreement should define what constitutes an "inopportune time" and what costs are incurred in the event of early termination. A rigid brokerage agreement that binds you for years is unprofessional.

7. Customer protection and causal relationship

What happens if the contract expires, but three weeks later a prospective buyer introduced by the real estate agent makes a purchase? In this case, the terms of the real estate agent contract protect the agent. A clause for client protection is standard practice. The contract stipulates that the commission is still owed even after the contract ends if the sale is attributable to the agent's efforts (causal link). Important for you: The real estate agent contract should limit this protection to a specific timeframe (e.g., 12 months after the contract ends) and require the agent to provide a list of prospective buyers. Without this list in the contract, the commission is not payable. You don't know who is protected.

8. Powers of Attorney and Liability

Is the real estate agent authorized to sign on your behalf? The brokerage agreement should restrictively regulate powers of attorney. A power of attorney for obtaining official documents (land registry) is standard. A power of attorney for sales or debt collection is not part of a standard brokerage agreement . Furthermore, the brokerage agreement should clarify liability. The agent is liable for due diligence, but not for the success of the sale. However, the brokerage agreement should not exempt them from liability for gross negligence.

9. Dual role

Is the real estate agent allowed to also represent the buyer? In Switzerland, dual representation is problematic. The brokerage agreement must disclose whether the agent also receives a commission from the buyer. Reputable agents exclude this in the agreement or state that they represent only one party to avoid conflicts of interest. Carefully review this point in the brokerage agreement .

Conclusion

The brokerage agreement is not a bureaucratic burden, but rather your insurance for a smooth sales process. Only when all services, costs, and exit scenarios are clearly defined can you begin marketing with peace of mind.

Ensure that the brokerage agreement is in writing and that no verbal side agreements are necessary. Insist on a " No Cure, No Pay" clause in the agreement and define a maximum cost for expenses. A reputable broker will have no problem making the agreement transparent and explaining each point to you. Take the time to review the document at home before signing.

Do you want to ensure that your contract documents and property records are securely organized, digital, and readily accessible at all times? Loft offers you the platform to easily and efficiently keep track of all relevant documents.

Glossary

• Content of brokerage agreement: The entirety of all rights and obligations between owner and real estate agent that are fixed in writing.
• Broker's commission (brokerage fee): The success fee, which is usually set as a percentage (2–3%) in the brokerage contract .
• Sole mandate (exclusive mandate): An agreement within the brokerage contract that prohibits the owner from engaging other brokers in parallel.
• Causal link: Proof that the sale was facilitated by the real estate agent. An important point in the real estate agent's contract regarding commission claims after the contract's termination.
• Cost ceiling: A maximum limit for expenses and marketing costs, stipulated in the brokerage agreement , which the owner must bear.