Real Estate Brokerage Contract in Colombia: Commissions, Clauses, and Rights of the Parties

When you decide to put a house, lot, or farm up for sale, or when you work as an independent real estate agent, the contractual framework is the only guarantee that the negotiation will be successful. In Colombia, the legal figure that regulates this work is not a mandate contract or a generic service provision, but the real estate brokerage contract, a figure explicitly contemplated in the Commercial Code.

To avoid misunderstandings about fees, management time, or the parties' commitments, it is essential to understand what the law requires, what fees are accepted by commercial custom, and what clauses protect your assets. According to active listings on Colombia Move (August 2026), there were 13 farms, 10 lots, and 7 country houses published; in a rural market with limited supply, putting the brokerage agreement in writing avoids arguments when a buyer appears.

1. Legal framework for real estate brokerage in Colombia

Brokerage in Colombia is regulated by articles 1340 to 1353 of the Commercial Code (Decree 410 of 1971). Article 1340 defines the broker as the person who, due to their market knowledge, acts as an independent intermediary to connect two or more people for the purpose of concluding a commercial transaction, without being linked to any of them by relationships of collaboration, dependency, mandate, or representation.

Unlike an agent (mandatario), the real estate broker does not act in the owner's name nor sign on their behalf; their technical role is to bring supply and demand together. The law also requires them to inform the parties of any known circumstances that could influence the conclusion of the business and to keep the received instructions confidential.

2. Usual real estate commissions and commercial custom

In Colombian territory, there is no state law that sets a mandatory percentage for real estate commissions by decree. Instead, the cost of brokerage is governed by the principle of free negotiation and commercial custom certified by chambers of commerce, including those in Medellín and Cali.

Unless expressly agreed otherwise, by commercial custom, the sales commission is paid by the seller. However, Article 1341 of the Commercial Code establishes a supplementary rule: if the contract does not state who assumes the fee, the cost must be paid by the parties in equal proportions.

The jurisprudence cited by La Lonja de Propiedad Raíz of Medellín and Antioquia supports that the broker's right to demand the commission arises when the business is effectively concluded as a direct result of their mediation.

3. Key clauses you should review before signing

A clearly drafted brokerage contract avoids unjustified charges and subsequent lawsuits. When reviewing the proposal presented by an agent or real estate agency, make sure to verify these points:

Exclusivity vs. free consignment: Exclusivity must be expressly agreed upon in writing and with a defined duration. Under free consignment, you can sell on your own or through other advisors without paying a penalty, provided the buyer has not been introduced by the initial broker.

Duration, extensions, and payment: The agreement must indicate when it starts and ends, how it is renewed, and which event triggers the commission. I would avoid signing an indefinite extension or a penalty whose value is not written with complete clarity.

Reimbursement of expenses (Article 1342): The Commercial Code provides for the reimbursement of essential expenses made by the broker, unless otherwise agreed. To avoid surprise charges for advertising or travel, define in writing which expenses the owner authorizes and which ones the commission covers.

If you are also in the process of leasing corporate or commercial real estate, it is worth checking our guide on leasing a commercial space or office in Colombia.

4. Owner rights regarding broker management

The owner retains the decision-making power over the final conditions of the business. Since the broker under Article 1340 is not a representative or agent, they cannot commit the owner as if acting on their behalf without a separate legal authorization.

The obligations, expenses, validity, exclusivity, termination causes, and handling of potential buyers must be in the document. In case of dispute, check the signed text and seek legal advice for your specific situation; do not assume that a business practice replaces what was agreed upon.

To learn about another protection framework in commercial transactions, you can consult the principles of legal warranty and commercial rights in Colombia.

5. Direct sales alternative without paying commissions

Although the work of a qualified broker adds value in complex negotiations, the owner can also sell directly. Honestly, I would not rule out a broker when there are title issues, easements, or several interested parties that are difficult to coordinate; but I would not sign exclusivity without comparing the cost against the specific work offered.

By publishing independently, you can coordinate visits and negotiate face-to-face. If you want to explore the current property offer, visit the housing section on Colombia Move.

Frequently asked questions

❓ What is the legal percentage for real estate commission in Colombia?

Colombian law does not establish a mandatory fixed rate. According to certified commercial custom, the usual commission is 3% for urban properties and between 3% and 5% for rural assets, figures verified in August 2026.

❓ Who should pay the real estate commission according to the Commercial Code?

By commercial custom, the payment is usually assumed by the seller. But Article 1341 establishes that, if it is not expressly agreed who pays, the cost is split equally between the seller and the buyer.

❓ When does the broker's right to collect a commission arise?

The right to collect arises when the business is effectively concluded thanks to the broker's work. It is advisable to define in the contract how that intervention is verified to avoid a later dispute.

❓ Is it mandatory to sign an exclusivity clause with a real estate agency?

It is not mandatory to agree to exclusivity in Colombia. The owner can choose open listing to sell on their own or with other intermediaries; if exclusivity is accepted, it must be in writing and have a defined duration.

❓ What happens if I sell the property on my own while having a non-exclusive contract?

If the buyer was found independently and the broker did not intervene, in principle, their commission is not incurred. Check the exact conditions of the signed contract and the contact traceability anyway.

❓ Where can I list my property for sale without paying commissions to intermediaries?

You can list your house, farm, or lot directly on a free portal like Colombia Move. This way, you receive messages from interested buyers without paying a brokerage percentage, although you remain responsible for reviewing documents and negotiating carefully.