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

When you decide to sell a house, lot, or farm, or when you work as an independent agent brokering properties, the contractual framework is the only guarantee that the negotiation will reach a good outcome. In Colombia, the legal instrument that governs this work is not a mandate contract or a generic service agreement, but the real estate brokerage contract, a figure explicitly covered in the Commercial Code.

To avoid misunderstandings about fees, management time, or the commitments of the parties, it is essential to understand what the law requires, which rates are accepted by commercial custom, and which 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 brokerage terms in writing prevents disputes when a buyer appears.

1. Legal framework for real estate brokerage in Colombia

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

Unlike a mandatary, the real estate broker does not act on behalf of the owner or sign on their behalf; their technical role is to bring supply and demand together. The law also requires them to inform the parties of known circumstances that may influence the completion of the transaction, and to keep confidential the instructions received.

2. Common real estate commissions and commercial custom

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

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

The case law cited by La Lonja de Propiedad Raíz de Medellín y Antioquia supports that the broker's right to claim the commission arises when the transaction 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 later lawsuits. When reviewing the proposal presented by an agent or real estate firm, make sure to verify these points:

Exclusivity vs. open listing: Exclusivity must be expressly agreed in writing and with a defined term. Under an open listing you may sell on your own or through other advisors without paying a penalty, provided the buyer was not introduced by the initial broker.

Duration, extensions, and payment: The agreement should state from when and until when it is in force, how it is renewed, and what event triggers the commission. I would avoid signing an indefinite extension or a penalty whose amount is not written with complete clarity.

Reimbursement of expenses (article 1342): The Commercial Code provides for reimbursement of necessary expenses incurred by the broker, unless agreed otherwise. 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 renting corporate or commercial properties, it is worth reviewing our guide on renting a commercial premises or office in Colombia.

4. Owner's rights regarding the broker's work

The owner retains the decision on the final terms of the transaction. Since the broker under article 1340 is neither a mandatary nor a representative, they cannot bind the owner as if acting in their name without a separate legal authorization.

Obligations, expenses, term, exclusivity, grounds for termination, and handling of potential buyers should all be set out in the document. In case of dispute, review the signed text and seek legal advice for your specific situation; do not assume that a commercial practice replaces what was agreed.

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

5. Direct sale 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 hard to coordinate; but I also would not sign exclusivity without comparing the cost with the concrete work offered.

When you list independently, you can coordinate visits and negotiate face to face. If you want to explore the current property offering, visit the housing section on Colombia Move.

Frequently asked questions

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

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

❓ Who must pay the real estate commission under the Commercial Code?

By commercial custom, the seller usually bears the payment. However, article 1341 establishes that, if it is not expressly agreed who pays, the cost is divided in equal parts between seller and buyer.

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

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

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

Exclusivity is not mandatory in Colombia. The owner may choose open listing to sell on their own or with other intermediaries; if they accept exclusivity, it must be stated in writing and with a defined term.

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

If the buyer was found independently and the broker did not intervene, their commission in principle is not triggered. In any case, review the exact conditions of the signed contract and the traceability of the contact.

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

You can publish your house, farm, or lot directly on a free portal such as 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.