Legal Validity Of The Exclusive Commission Articles In The Estate Agent Contracts

Estate agents play an important role in the second-hand housing transactions.Due to view of “net widely”,a house seller usually consign a house to several estate agents for selling,which causes “discard brokers”phenomenon.In order to avoid “discard brokers”,estate agents in China learn the exclusive agency system from America by setting up exclusive commission article in the contract of mediate for ensuring the payment of mediate as their income.However,no unanimous conclusion can be drawn in the judicial field referring to the legal validity of the exclusive commission articles in the estate agent contracts.The problem will be researched through legal principle analysis and cases analysis in the paper,which provides several suggestions for approving exclusive commission system.The paper has five chapters,apart from the instruction and conclusion:The first chapter introduces the origination and development of the mediate exclusive commission article.In order to avoid “discard brokers”,estate agents in China learn the exclusive agency system from American MLS model.The types and development of the contracts of mediate with exclusive commission articles are introduced,and the internal legislation status for exclusive commission model is summarized.The second chapter offers principle analysis for exclusive commission article.Based on the analysis referring to the nature of estate agent contract,the origination and principle basis of the exclusive commission articles inthe estate agent contracts are researched,and the relationship between the exclusive commission articles and the estate agent contracts clarified.The third chapter analyses the court decisions referring to the legal validity of the mediate exclusive commission articles and the effective condition of liability for breach contract.Through compare and analysis of multiple of justice cases,the judging principle for legal validity of the exclusive commission articles in the court decisions is concluded,as well as when the client shall be responsible for breach contract,besides,the problem still existed is identified.The forth chapter refers to the collision and combing of the right of discretionary dissolution of commission contract with the exclusive agreement.Through analysis of several justice cases referring to disputes arise along with termination of the contract of exclusive commission,it's discussed how to realize the enforcement of right of discretionary dissolution of commission contract and what is the consequence for enforcement of right of discretionary dissolution of commission contract.The fifth chapter provides suggestions for improving the exclusive commission system.Two targets are established.The primary target refers to more effective and specific guidance for justice cases and transaction practice through improving legislation and relevant implementing regulation.The ultimate goal refers to breaking the exclusive monopoly,which requires information sharing among the whole estate agent industry instead of enterprise internal information sharing,for supporting healthier and more reasonable exclusive commission model.