Legal provisions on agency fees

Intermediary expenses refer to the expenses incurred in the intermediary contract. Intermediary, as a form of intermediary, aims to link buyers and sellers of the same commodity together in order to facilitate the service of obtaining reasonable commission after the transaction. No matter what kind of intermediary, the intermediary is not the agent of the principal, but the intermediary that plays the role of introduction and help between the two parties to the transaction.

Intermediaries must have two elements to get paid;

1. The contract introduced must be established;

2. There is a causal relationship between the establishment of the contract and the introduction of the broker.

Intermediary activity expenses are necessary expenses incurred by intermediaries in promoting the establishment of contracts, which are not equal to remuneration. Therefore, sometimes, although the broker paid labor and expenses to facilitate the establishment of the contract, but the contract was not facilitated, he still can't ask for remuneration, and can only ask the client to pay the necessary expenses for intermediary activities, such as transportation expenses for intermediary activities.

In principle, the maximum agency fee is 2% of the real estate transaction amount, and there is no clear legal provision. The agency fee for real estate sales is 0.5% to 2% of the real estate transaction amount, and the agency fee for real estate rental is the transaction rent from half a month to January, which will be collected in one lump sum through negotiation between both parties.

Legal basis:

People's Republic of China (PRC) Civil Code

Chapter nine hundred and sixty-one

An intermediary contract is a contract in which the intermediary reports the opportunity to conclude a contract to the client or provides media services for concluding a contract, and the client pays the remuneration.

Chapter nine hundred and sixty-three

If the broker facilitates the establishment of the contract, the principal shall pay the remuneration as agreed. If the remuneration of the broker is not agreed or clearly agreed, and cannot be determined according to the provisions of Article 510 of this Law, it shall be reasonably determined according to the services of the broker. Where an intermediary provides media services for concluding a contract, the remuneration of the intermediary shall be borne equally by both parties to the contract.

If the intermediary facilitates the establishment of the contract, the expenses of the intermediary activities shall be borne by the intermediary.