• About us
  • Our news
  • People
  • Practice areas
  • Recognitions
  • Career
  • Contact
  • About us
  • Our news
  • People
  • Practice areas
  • Recognitions
  • Career
  • Contact
  • ET
  • EN
  • RU

Practice areas

  • Tax

    Tax

    Tax, Customs

    Our tax specialists, some with prior experience of working for the tax authorities, advise and represent clients in all issues related to tax and customs law: structuring transactions, relations with tax authorities and tax disputes (i.a. tax crimes). The vast and highly recognised experience with tax disputes allows us to foresee and address the potential risks already prior to executing transactions.

    Latvia

    Partners
    • Aivar Pilv
    • Pirkka-Marja Põldvere
    • Merilin Ojasaar
    • Marko Pilv
    Senior Associates
    • Epp Lumiste
    • Oleg Matvejev
    Associates
    • Kaili Rätsepp
    • Artur Viira
    Support staff
    • Marina Pilv
    • Ene Eesik
  • Regulatory & compliance

    Regulatory & compliance

    Administrative proceedings, Consumer protection, Data protection, Energy, Sports

    Given the ever-expanding set of local and international rules and regulations which impact the daily lives of companies of all sizes, compliance has been getting more and more attention as a potential source of corporate issues. Our team of specialists has vast experience in helping our clients to understand and deal as efficiently as possible with all the rules and regulations that apply to them.

    Latvia

    Partners
    • Aivar Pilv
    • Pirkka-Marja Põldvere
    • Merilin Ojasaar
    • Marko Pilv
    Senior Associates
    • Epp Lumiste
    • Oleg Matvejev
    Associates
    • Kaili Rätsepp
    • Artur Viira
    Support staff
    • Marina Pilv
    • Ene Eesik
  • Real estate & construction

    Real estate & construction

    Construction, Zoning and planning, Infrastructure, Environment, Real estate

    Our practice includes counselling on a variety of real estate related issues: real estate development (i.a. zoning & planning, permits, infrastructure, construction contracts, financing, environment), rights and obligations stemming from ownership (e.g. co-ownership, servitudes, access roads), as well as rent and lease of immovables. International publications have, for years, recognised our professionalism in dealing with these matters.

    Latvia

    Partners
    • Aivar Pilv
    • Pirkka-Marja Põldvere
    • Merilin Ojasaar
    • Marko Pilv
    Senior Associates
    • Epp Lumiste
    • Oleg Matvejev
    Associates
    • Kaili Rätsepp
    • Artur Viira
    Support staff
    • Marina Pilv
    • Ene Eesik
  • Mergers & Acquisitions

    Mergers & Acquisitions

    Mergers & Acquisitions (M&A)

    We assist our clients in all stages of M&A transactions, i.a. negotiations, project management, structuring of the transaction, conducting legal due diligence and other preparations, execution of necessary documentation, as well as closing of transactions. We also advise our clients on creating joint ventures. Our M&A team has experience in providing practical solutions in the most complex issues. We have advised all kinds of companies and our M&A team has participated in a number of transactions in all the Baltic countries and also covering outside targets.

    Latvia

    Partners
    • Aivar Pilv
    • Pirkka-Marja Põldvere
    • Merilin Ojasaar
    • Marko Pilv
    Senior Associates
    • Epp Lumiste
    • Oleg Matvejev
    Associates
    • Kaili Rätsepp
    • Artur Viira
    Support staff
    • Marina Pilv
    • Ene Eesik
  • Medical & pharmaceuticals

    Medical & pharmaceuticals

    Health care, Medical & pharmaceuticals

    We provide legal advice and represent our clients in all matters related to pharmaceuticals, which is one of the fastest growing industries with rapidly changing rules and regulations that varies from one country to another. Our attorneys, in cooperation with medical field professionals, advise on a regular basis on the requirements for manufacturing medical products, the promotion of medical products and requirements for performance of clinical trials. We also have a comprehensive practice in representing clients in medical malpractice cases.

    Latvia

    Partners
    • Aivar Pilv
    • Pirkka-Marja Põldvere
    • Merilin Ojasaar
    • Marko Pilv
    Senior Associates
    • Epp Lumiste
    • Oleg Matvejev
    Associates
    • Kaili Rätsepp
    • Artur Viira
    Support staff
    • Marina Pilv
    • Ene Eesik
  • IT & intellectual property

    IT & intellectual property

    Information technology, Telecommunications, Media, Intellectual property

    We keep up with the times and acknowledge the vast use of information technologies and the growing importance of intellectual property in today’s business. With individual approach and by looking from clients’ perspective, our team can provide advice on all aspects related to information technologies and intellectual property. We combine our knowledge of conventional business transactions with an in-depth understanding of the related technical aspects. Our attorneys are recognised for having experience e.g. in legal aspects of cloud computing, software licencing and patent registration.

    Latvia

    Partners
    • Aivar Pilv
    • Pirkka-Marja Põldvere
    • Merilin Ojasaar
    • Marko Pilv
    Senior Associates
    • Epp Lumiste
    • Oleg Matvejev
    Associates
    • Kaili Rätsepp
    • Artur Viira
    Support staff
    • Marina Pilv
    • Ene Eesik
  • Dispute resolution

    Dispute resolution

    Litigation, Arbitration, Alternative dispute resolution, Family and inheritance, Enforcement, White-collar crimes

    We have a comprehensive practice in litigation, arbitration, as well as out-of-court debt recovery. Our attorneys are regularly acting as arbitrators, conciliators and bankruptcy trustees. Many of our cases have principally changed the interpretation of law, being often also of interest to the general public. International publications have, for years, recognised us as among top dispute resolution firms on the market.

    Latvia

    Partners
    • Aivar Pilv
    • Pirkka-Marja Põldvere
    • Merilin Ojasaar
    • Marko Pilv
    Senior Associates
    • Epp Lumiste
    • Oleg Matvejev
    Associates
    • Kaili Rätsepp
    • Artur Viira
    Support staff
    • Marina Pilv
    • Ene Eesik
  • Corporate & commercial

    Corporate & commercial

    Corporate governance, Public procurement, Public-private partnerships, Transactions and trade, Competition, Employment, Migration, Transport

    Our group of specialists provides top-quality counselling on various aspects of corporate and commercial law: corporate governance, transactions and trade, public procurement, public-private partnerships, competition etc. Our clients range from some of the largest companies in the market to small start-ups, and thus the advised issues vary respectively. Our competence has been consistently recognized as one of the best in the market by annual international publications.

    Latvia

    Partners
    • Aivar Pilv
    • Pirkka-Marja Põldvere
    • Merilin Ojasaar
    • Marko Pilv
    Senior Associates
    • Epp Lumiste
    • Oleg Matvejev
    Associates
    • Kaili Rätsepp
    • Artur Viira
    Support staff
    • Marina Pilv
    • Ene Eesik
  • Banking & finance

    Banking & finance

    Finance, Banking, Securities, Insurance, Investment, Insolvency, Debt restructuring and recovery

    We advise banks and other financial institutions in all matters related to financial transactions and supervision. International publications recognise LEADELL offices as among leading law firms in advising on debt restructuring and rescheduling. The experience gained by advising leading banks of the Baltics allows our team to adequately address the interests of all parties to a transaction, as well as requirements applicable to them. Our team is also competent in counselling on fintech matters that have arisen due to the radical changes in traditional financial services caused by digital innovations.

    Latvia

    Partners
    • Aivar Pilv
    • Pirkka-Marja Põldvere
    • Merilin Ojasaar
    • Marko Pilv
    Senior Associates
    • Epp Lumiste
    • Oleg Matvejev
    Associates
    • Kaili Rätsepp
    • Artur Viira
    Support staff
    • Marina Pilv
    • Ene Eesik
    • ET
    • EN
    • RU
  • AB
  • AB
  • About us
  • Our news
  • People
  • Practice areas
  • Recognitions
  • Career
  • Contact

Our Experience

News

The most important things to know when using a brokerage service

29.09.2020LEADELL

In practice, the use of brokers is widespread in the real estate purchase-sale and rent field, usually it works on a principal that in the contract signed with the broker it is agreed on a fixed fee or a percentage of the transaction value, which later will be paid to the broker as a payment when the transaction takes place. Every now and then, tensions arise between the broker and the customer’s communication because the parties have not considered all the relevant circumstances when concluding the contract.

Within the meaning of current law, receiving a brokerage fee expects that as a result of the broker’s contribution the client (the mandator) enters into an agreement with third parties mediated or referred by the broker (it means that it does not matter whether it is a purchase, lease or rental agreement).

To avoid further misunderstandings the first thing to decide should be whether the broker gets paid a fixed fee while finding a suitable buyer/seller or tenant or whether the fee consists of a certain percentage of the value of the transaction, based on a principle the higher the price/lease/rent, the higher the fee received by the broker. A situation may occur as well where real estate cannot be sold with the expected price. If the parties have agreed on a fixed fee, based on a significantly higher-than-expected sales price, a situation may arise where in a worst case the real estate has to be transferred with significantly lower price than expected but at the same time an agreed brokerage fee must be paid, which in the case of a lower value may form a fairly significant part of the total cost of the immovable. Therefore, the agreement on the percentage of the sales price offers more flexibility and motivates the broker for maximum effort to reach the highest possible price.

It would be also reasonable to specify in the contract what are the broker’s duties to be performed under the contract (for example photographing the object, advertisement compiling, search for an active buyer/tenant, communicating with interested parties, demonstrating the object etc) and come to terms on who will bear the costs of these activities (advertisement and photograph costs, broker’s time, broker’s costs regarding the demonstration of the object etc).

It must be considered that the broker’s effort to the sale of the real estate may also remain very modest. With popular real estates the broker could find a buyer immediately without even uploading the advertisement, or the real estate can change an owner within days after the advertisement had been uploaded to the internet portal. The mandator may raise a question that whether the brokerage fee is still justified because the broker did ‘’so little work’’ but at the same time still asks a relatively high payment.  In the sense of a brokerage agreement, it does not matter how much the broker realistically works to sell the object but the right to claim fee arises according to finding a buyer/lessee/renter. Thus, it does not matter whether the broker sells the object in a day or a month, because in both cases the broker has found a buyer and the client has to pay a fee to the broker.  Therefore, the so-called small amount of work cannot be the basis for not paying or reducing the broker’s fee, except when agreed otherwise.

If the owner of the real estate also wants to actively search for a buyer or a tenant at the same time as the broker, then it would be reasonable to agree on whether and how much the broker should be paid if the real estate owner himself finds the buyer or tenant, but at the same time the broker has made professional photographs and compiled an advertisement or done other activities and contributed their time.

It is also important to pay attention to the possibilities how to terminate the contract and it’s conditions because the wish to sell the real estate or rent it may change over time and therefore you could find yourself in a situation where changing your mind could become very expensive if for example you have to pay all or a big part of the broker’s fee.

In conclusion, while signing a broker’s contract, it is reasonable to think clearly what kind of service would you like to buy, under what conditions and how much are you willing to pay as well as to discuss and record these conditions in writing with the broker.

Marko Pilv/ LEADELL Pilv Advokaadibüroo attorney- at- law/ partner

  • Share on LinkedIn
  • Share on Facebook
  • Share on Twitter

Categories

  • All
  • International recognition
  • Office news
  • Tax
  • Real estate & construction
  • Dispute resolution
  • IT & intellectual property
  • Regulatory & compliance
  • Corporate & commercial
  • Seminars trainings

Subscribe to Leadell's Newsletter

    Maakri 19/1, P.O. Box 19
    10145 Tallinn, Estonia
    Tel.+ 372 619 1630
    E-mail: tallinn@leadell.com

    • M_rgisENG