Can the agency fee be refunded if the house is bought bypassing the agent?
Compiled from: Yinan Court
Case review
Liu operated a real estate agency. On March 9, 2021, Gao found a property priced at 340,000 yuan at Liu's agency, owned by a third party Li. Gao paid Liu a 2,000 yuan agency fee. On March 25, 2022, Gao confirmed via text message to Liu the intention to purchase Li's property. Later, Gao privately reached a house sale agreement with seller Li at a price of 335,000 yuan. Gao then sued Liu in court, demanding compensation for losses and a refund of the agency fee.
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The court held that in this case, Gao expressed the intention to purchase Li's property at Liu's agency and paid the agency fee, forming an agency service relationship. Both parties should act in good faith and fulfill their agreed obligations. Liu had initially provided Gao with information about the intended property, fulfilling the agreed obligations. Gao, using the property information obtained from Liu, bypassed Liu and directly reached a house sale agreement with the seller at 335,000 yuan, violating the principle of good faith. The court found no factual or legal basis for Gao's claim for compensation and refund of the agency fee and thus did not support it.
Civil Code of the People's Republic of China
[2] Article 7
Civil subjects engaging in civil activities shall adhere to the principle of good faith, uphold integrity, and keep promises.
[6] Article 509
The parties shall fully perform their obligations as agreed. The parties shall follow the principle of good faith and perform obligations such as notification, assistance, and confidentiality in accordance with the nature, purpose, and trade practices of the contract. In the course of performing the contract, the parties shall avoid wasting resources, polluting the environment, and damaging the ecosystem.
Article 965
If, after accepting the intermediary's services, the client uses the transaction opportunities or intermediary services provided by the intermediary to bypass the intermediary and directly enter into a contract, the client shall pay remuneration to the intermediary.
[1] The author's perspective
In fact, it is not hard to see in daily life that the principle of good faith should be followed in all actions, not just civil legal ones. In this case, after accepting the services of the agent Liu, the client Gao used the transaction opportunities or intermediary services provided by the agent and ultimately bypassed the agent to directly enter into a contract. This is a typical act of "jumping the deal" and should pay remuneration to the agent. It is worth noting that although such cases are not complicated, it is important to keep records of the agency contract and daily communications to best protect one's rights in similar situations.
Civil Code of the People's Republic of China
[2] Article 7
Civil subjects engaging in civil activities shall adhere to the principle of good faith, uphold integrity, and keep promises.
[6] Article 509
The parties shall fully perform their obligations as agreed. The parties shall follow the principle of good faith and perform obligations such as notification, assistance, and confidentiality in accordance with the nature, purpose, and trade practices of the contract. In the course of performing the contract, the parties shall avoid wasting resources, polluting the environment, and damaging the ecosystem.
Article 965
If, after accepting the intermediary's services, the client uses the transaction opportunities or intermediary services provided by the intermediary to bypass the intermediary and directly enter into a contract, the client shall pay remuneration to the intermediary.
[1] The author's perspective
In fact, it is not hard to see in daily life that the principle of good faith should be followed in all actions, not just civil legal ones. In this case, after accepting the services of the agent Liu, the client Gao used the transaction opportunities or intermediary services provided by the agent and ultimately bypassed the agent to directly enter into a contract. This is a typical act of "jumping the deal" and should pay remuneration to the agent. It is worth noting that although such cases are not complicated, it is important to keep records of the agency contract and daily communications to best protect one's rights in similar situations.
