Real Estate Laws

Rules on real estate brokerage

Alessandro Mori real estate agent & Architect

  • art. 1754 Mediator – The mediator is the one who connects two or more parties for the conclusion of a deal, without being tied to any of them by collaborative, dependent or representative relationships.
  • art. 1755 Commission – The mediator has the right to commission from each of the parties (2950), if the deal is concluded due to his intervention.
    The extent of the commission and the proportion in which it must weigh on each of the parties, in the absence of a pact, professional fees or customs, are determined by the judge according to equity.
  • art. 1756 Reimbursement of expenses – Unless otherwise agreed or used, the mediator has the right to reimbursement of expenses towards the person on whose behalf they were executed even if the deal was not concluded.
  • art. 1757 Commission in conditional or invalid contracts – If the contract is subject to a suspensive condition, the right to commission arises when the condition occurs.
    If the contract is subject to a condition of termination, the right to commission does not disappear with the occurrence of the condition (1353 and following). The provision of the previous paragraph also applies when the contract is voidable (1425 and following) or rescindable (1447 and following), if the mediator did not know the cause of invalidity.
  • art. 1758 Plurality of mediators – If the deal is concluded due to the intervention of several mediators, each of them is entitled to a share of the commission.
  • art. 1759 Responsibility of the mediator – The mediator must communicate to the parties the circumstances known to him, relating to the evaluation and security of the deal, which may affect the conclusion of the deal.
    The Relator (Real estate agent)  is responsible for the authenticity of the signing of the writings and of the last turn of the titles sent through him (2008).
  • art. 1760 Obligations of the professional mediator – The professional mediator in business on goods or securities must: 1) keep the samples of the goods sold above sample (1522), as long as there is a possibility of controversy over the identity of the goods; 2) to release to the buyer a signed list of the negotiated securities, indicating the series and number; 3) write down in a special book (2214 and following) the essential details of the contract stipulated with his intervention and issue to the parties a copy signed by him of each annotation.
  • art. 1761 Representation of the mediator – The mediator can be instructed by one of the parties to represent it (1388) in the documents relating to the execution of the contract concluded with his intervention.
  • art. 1762 Unnamed contractor – The mediator who does not manifest the name of the other to a contractor is responsible for the execution of the contract (1415) and, when he has performed it, takes over the rights towards the unnamed contractor (1203 and following).
    If after the conclusion of the contract the unnamed contractor shows up to the other party or is appointed by the mediator, each of the contractors can act directly against the other, without prejudice to the responsibility of the mediator.
  • art. 1763 Guaranty of the mediator – The mediator can provide a guarantee for one of the parties (936 and following).
  • art. 1764 Sanctions – The mediator who does not fulfill the obligations imposed by art. 1760 is punished with a fine from L. 10,000 (euro 5.16) to L. l,000,000 (euro 516.46). In severe cases, suspension from profession for up to six months may be added. The mediator who carries out his activity in the interest of a person who is notoriously insolvent or of whom he knows the state of incapacity is subject to the same penalties.
  • art. 1765 Special laws – The provisions of the special laws are reserved.
  • art. 2083 Small entrepreneurs – Direct fund growers (1647, 2139), artisans, small traders and those who carry out a professional activity organized mainly with their own work and those of the family are small entrepreneurs (2202, 2214, 2221) .
  • art. 2195 Entrepreneurs subject to registration – Entrepreneurs who exercise:
    an industrial activity aimed at the production of goods or services are subject to the obligation of registration in the register of companies; 2) an intermediary activity in the movement of goods;
  • 3) a transport activity by land, or by water or by air; 4) a banking or insurance business; 5) other ancillary activities of the previous ones (1754). The provisions of the law that refer to commercial activities and businesses apply, unless otherwise indicated, to all the activities indicated in this article and to the companies that carry them out.
    art. 2950 Prescription of the right of the mediator- The mediator’s right to pay the commission is prescribed in one year (1755).

  • The commissions of brokers and real estate agencies
    The measure of the commission, according to article 6 of the law n ° 39 of 1989 which regulates the mediations, “is established between the parties or, in the absence of agreements, reference is made to the uses of the local Chambers of Commerce”. Therefore, there are no rates established by law and the amount of the commission is freely negotiable between the parties, what to do at the time of the assignment of the sale or rental assignment.
    The negotiation must refer, case by case, to the difficulty inherent in the conclusions of the deal, to the services that are offered and that are requested and to the series of advantages that are intended to be obtained by mediation.
    The measures taken by the Chamber of Commerce of Rome, for average values of properties purchased and sold, currently range from a minimum of 3% by way of mediation for the seller, to a minimum of 3% for the buyer + VAT. Obviously the notary costs of the contract and the ancillary costs, taxes and similar, are always excluded from the broker’s commissions and remain the responsibility of the buyer.

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