The person that, pursuant to the mediation contract, searches for a second party for concluding a certain contract and that mediates in the negotiations for making the contract in return for a commission.
Broker Rights and Obligations
1. The broker shall be committed to conclude a written mediation contract according to the ad hoc form adopted by the Municipal Affairs Department before carrying out any business for the contract party. Further, the broker shall submit such contract to the Municipal Affairs Department to be entered into the Real Estate Development Register before receiving any money from the client within the maximum period of 15 days as of the date of signing such contract.
2. If the developer agreed with the broker that the latter shall market the real estate development project in whole or in part, the broker shall deposit the price of the real estate unit mediated for the sale thereof in the project’s guarantee account. It shall not be permissible for the broker to deposit such amount in his own account or deduct his commission form the price before depositing it in the project’s guarantee account. Any agreement otherwise shall be null and void.
3. It shall not be permissible for the broker to realize any personal benefit from such amounts deposited in the project’s guarantee account. Further, it shall not be permissible for the broker to withdraw any amount from such account unless in cases approved by the Municipal Affairs Department.
4. Funds deposited by the broker in the project’s guarantee account shall not be subject to the procedures of mortgage, liquidation or bankruptcy or any other procedures to which the broker may be subject as a result of legal obligations due on him.
5. The maximum wage or commission collected by the broker from the client shall be determined by a resolution issued by the Chairman from time to time.
6. The broker shall not be entitled for any wage or commission for mediation unless it resulted in concluding the contract between the two parties and the contract shall be deemed concluded whenever the two parties agreed on all substantial matters in the contract. The criterion for the entitlement of the broker for the wage thereof shall be the concluding of the contract, even if it is not executed, unless otherwise is agreed upon.
7. If the contract party appointed more than one broker for the same job, a principal mediation contract shall be concluded with any of such brokers whereas brokers shall make a written mediation subcontract among themselves according to the ad hoc form adopted by the Municipal Affairs Department so that brokers shall divide the commission or wages as specified by the sub contract.
8. It shall not be permissible for the broker to represent more than one party in the same transaction and in exception of this provisions, it shall be permissible for two brokers or broker’s employees at the same office or company to represent more than one party separately in the same transaction, providing that:
a. The contract parties know and approve that the broker, or broker’s employee, is representing more than one party in the same transaction.
b. The contract parties sign, each on his own, a written mediation contract with the broker.
c. The broker, or broker’s employee, shall represent the contract party with all integrity and independency.
9. It shall not be permissible for the broker to realize any personal benefit in any dealing carried out thereby for the interest of the contract party in the exception of the wage or commission due to him for activities he offered to clients according to the mediation contract. The broker shall inform the contract party he is representing of all the details of negotiations undertaken on his behalf.
10. The broker shall put his registration number in the Real Estate Development Register outside his office and on all correspondence, announcements and documents issued thereby and on business cards or any publications or equipment used thereby.
11. The broker shall keep such registers specified by the provisions of the Executive Regulation and shall enter all transactions made thereby in the Real Estate Development Register as specified by the Municipal Affairs Department.
12. The broker shall act as a trustee regarding any securities, bonds or title deeds handed over to him by the contract party and he shall deliver them according to the conditions set by the contracting party.
The Required Training Program for The Real Estate Broker Profession:
Real Estate Brokerage Program