One of the key documents when starting the process of selling a property through a real estate agency is the agency agreement. This contract is essential, as it sets out in writing the basic conditions of the transaction and must include a series of essential details.
If you are considering selling your property with us, it is important that you understand in detail what the agency agreement is and which elements must always be included.
What is the agency agreement or mandate?
The real estate agency agreement, also known as the engagement form, is a formal contract between the agency or real estate agent and the property owner. Its purpose is to clearly define the conditions under which the property will be marketed, as well as the rights and responsibilities of both parties in managing the sale.
For the document to be valid, it must be signed by both the owner and the agency. It typically includes key details such as the agent’s commission, the payment method, the duration of the contract, and the listing price of the property on the market.
What is the purpose of the agency agreement?
The real estate agency agreement plays a crucial role: it protects both the owner and the agency while clearly setting out the terms of their contractual relationship.
Essentially, this agreement serves as the foundation to ensure that both parties fully understand their rights and obligations before the property is marketed. It also provides legal security, acting as proof in the event of a judicial or extrajudicial claim if either party fails to comply with the terms agreed upon.
Is the agency agreement mandatory?
The agency agreement is not legally required across the entire country, although some regional authorities do have specific regulations that make it compulsory.
Even so, it has become an essential document in any real estate transaction: failing to present it is often seen as unprofessional practice and may raise doubts about the agency’s credibility.
At the national level, property owners are protected by the General Law for the Defense of Consumers and Users, which recognizes, among other things, the consumer’s right to withdraw from the contract within 14 calendar days of signing, without incurring any penalties.
In some regions, however, the legislation goes even further. A clear example is Catalonia, where Law 18/2007 of December 28 on the Right to Housing requires real estate agents to sign an agency agreement with property owners who entrust them with the sale of their home.
Obligations of real estate agents
The law also establishes that agents must meet a number of obligations designed to reinforce transparency and consumer protection. Among these are:
- Act with diligence, responsibility, and professional independence.
- Carry out their work in compliance with current legislation and the ethical standards of the sector.
- Ensure the protection of the rights of property buyers and users.
More specifically, though not exclusively, the law prohibits the use of names, references, or practices that could mislead consumers about the true nature of the business, establishment, or services provided.
Types of real estate agency agreements
In general, there are two main types of agency agreements:
Exclusive agency agreement
This type of contract grants the agent or agency the exclusive right to market the property, which means that the owner cannot list it through other professionals or companies. Typically, this agreement includes an exclusivity clause and sets a specific timeframe for the sale under the agreed conditions.
Non-exclusive agency agreement or simple mandate
In this case, the owner retains the freedom to sell or promote their property through other agents or on their own. This option is explicitly stated in the agency agreement, ensuring clarity and flexibility for both parties.
What should a real estate agency agreement include?
The minimum content of an agency agreement may vary depending on regional legislation, so there is no single model applicable nationwide. However, to guide both property owners and agents, the following elements should be included in any engagement form:
- Identification of the real estate agent, including their registration number.
- Details of the property owner(s) and, if applicable, their legal representative.
- Duration of the agreement and terms for renewal or termination.
- Description of the entrusted operation, outlining the scope of the service.
- Identification of the property or properties, including registry details, charges, encumbrances, and any other relevant issues.
- Housing protection regime, if applicable.
- Listing price, including negotiation limits, payment method, and allocation of costs related to the transaction.
- Relevant legal aspects affecting the property, especially ongoing legal proceedings, which must be disclosed by the owner under their responsibility.
- Agent’s fees and payment method, including any specific conditions.
- Rights and obligations of both parties, including the powers granted to the agent to act on behalf of the owner.
In addition, it is essential that the agency agreement complies with data protection regulations, ensuring the confidentiality and security of all information provided by the parties involved.

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