Elements of Brokerage Agreement
Again, when Article 520 of the TCO is analyzed, it will be determined that the elements of this contract are as follows:
A) The parties to the brokerage agreement, the broker and the business owner
B) The intermediary activity undertaken by the broker for the conclusion of the principal contract
C) Wage
D) The business owner and the person brokered by the broker have reached an agreement
It has been established in many Court of Cassation decisions that these elements are mandatory elements, otherwise the contract will not be valid as a brokerage agreement.
The Turkish Code of Obligations is a law that adopts freedom of form in general terms. The brokerage agreement does not have to be in writing unless otherwise agreed. However, the Turkish Code of Obligations excludes “real estate brokerage” from this freedom of form and stipulates the requirement of ordinary written form. In addition, both parties must sign the real estate brokerage agreement and the agreement must cover all elements of the brokerage agreement.