A brokerage agreement is a legal instrument under which a broker undertakes to find a person who is willing to negotiate with the client to conclude a transaction that is the subject of the brokerage, and the client undertakes to pay a brokerage commission if such a transaction is concluded. The general regulation of brokerage agreements is contained in the Civil Code, which regulates the essential characteristics of the brokerage relationship with predominantly dispositive provisions. The specifics of real estate brokerage require special regulation, which is why the legislator has regulated this area with the Real Estate Brokerage Act. This Act regulates in detail the rights and obligations of the parties to the brokerage relationship, in particular the scope and content of the broker's activities, his responsibilities, and the requirements for performing the activity. The purpose of such regulation is to protect the weaker party, serve the public interest, and promote the development of the real estate industry. Despite legal standardisation, complications arise in practice regarding the scope of activities to be performed by real estate agents and the payment for them. A recent decision by the Constitutional Court of the Republic of Slovenia, which repealed the provision limiting the amount of payment for real estate brokerage, brings practical changes with long-term effects on the real estate market.
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