Things to note when consigning real estate

Real estate consignment is a legal form of buying, selling and renting real estate between 3 parties: the homeowner, the broker and the buyer. With this form, the owner will not work directly with the buyer but will completely authorize the intermediary, the broker, to carry out the entire transaction process.

After the transaction is successful, the seller will take back the sale amount and pay the intermediary a commission at the pre-agreed rate.

In many cases, the seller and the intermediary also have terms clearly stated in the contract. Specifically, the intermediary accepts the deposit of the right to appraise the real estate and sell it at a price agreed upon with the owner, as long as after the transaction is successful, it can return the exact amount the owner previously requested.

Benefits of real estate consignment

- The first benefit of real estate consignment is that it helps the owner to quickly sell or rent the property, while all legal procedures are handled by the intermediary.

- Helps sellers save time, instead of having to find buyers themselves, when consigning real estate, the intermediary will find customers for you.

- The intermediaries are all specialized units, have worked a lot and are familiar with transactions, so sellers can rest assured in many aspects.

- Purchase information is confidential.

- Limit many unwanted risk factors.

Possible risks

- The seller must pay a consignment fee to be able to hire an intermediary to sell or rent the property quickly.

- Encountering an unreliable intermediary. In fact, there are some real estate consignment units that are unreliable or can even be fraudulent, causing sellers to have their documents swapped, prices forced down...

Notes when consigning real estate

- Choose reputable units to consign real estate purchases and sales to ensure that the consignee will perform correctly in the transaction: the time of purchase and sale is in accordance with the contract, the value of the real estate must not differ from the agreement, all transaction procedures must comply with legal regulations, and the commission fee must be clearly agreed upon.

- Carefully research service costs before consigning real estate, consult service cost and commission rates of many parties before signing the contract.

- It is necessary to check all contract information and the legality of the accompanying documents. If the agreement is accepted, both parties sign and each party keeps a copy of the contract.