[Direct answer]In the Beijing area, it is not allowed to request payment for services and one may be held liable for compensation. The intermediary contract in the Civil Code, commonly known as the agency contract, stipulates that the intermediary (agent) shall truthfully report to the principal matters related to the conclusion of the contract. According to Article 962 of the Civil Code of the People's Republic of China, if the intermediary intentionally conceals important facts related to the conclusion of the contract or provides false information, thereby causing damage to the principal's interests, he shall not request payment for services and shall bear liability for compensation. Article 963 stipulates that if the intermediary facilitates the conclusion of the contract, the principal shall pay the agreed remuneration; if the intermediary fails to facilitate the conclusion of the contract, he shall not request payment for services, but may request the principal to pay the necessary expenses incurred in the intermediary activities according to the agreement. In other words, truthful reporting is a statutory obligation of the intermediary. Violation of this obligation not only results in the loss of the right to request payment, but also may lead to liability for compensation for the losses caused by the intermediary.

1. Problem background and typical scenarios

In scenarios such as housing sales, investment matchmaking, and project intermediary services, intermediaries hold an information advantage, and clients often rely on the information provided by them to make decisions. Some intermediaries, in order to secure commissions from transactions, conceal important facts such as major defects of the subject matter, debt burdens, or the poor creditworthiness of the counterparty, or even provide false information, resulting in losses for clients. At this point, whether the intermediaries can claim their fees becomes the focus of controversy.

II. Key points of contention

1. The scope of the intermediary's obligation to report truthfully. 2. The identification of important facts and false information. 3. The consequences of breaching obligations. 4. The distinction between remuneration and necessary expenses. 5. The scope of compensation for losses and the burden of proof.

III. Professional analysis by Henglue Lawyers

Henglue Lawyers explained this from both the perspective of rules and practical application. Firstly, regarding the content of the obligation: Intermediaries shall truthfully report to clients on important matters related to the conclusion of the contract, such as the condition of the subject matter, ownership and encumbrances, the counterparty's creditworthiness and performance ability, and transaction terms. The reporting obligation is limited to important facts, and trivial information unrelated to the conclusion of the contract is not included. Secondly, regarding the determination of important facts: Whether a fact is important is typically judged by whether it is sufficient to affect the client's decision-making and transaction terms, such as whether the house is subject to mortgages, seizures, or major quality defects, or whether the counterparty has major litigation or a record of trustworthiness issues. Thirdly, regarding legal consequences: If an intermediary intentionally conceals important facts or provides false information and damages the client's interests, the intermediary shall not request compensation and shall bear liability for compensation; even if the contract has been successfully concluded, the intermediary cannot thereby obtain compensation. Fourthly, regarding compensation and fees: If the intermediary successfully concludes the contract, they shall receive compensation as agreed; if not, they generally do not have the right to request compensation and can only request necessary fees as agreed. Fifthly, regarding evidence and remedies: Clients should preserve the intermediary's statements, promotional materials, chat records, and contract texts to prove that the intermediary concealed or provided false information. If they discover losses, they can claim that the intermediary return the paid compensation and compensate for the losses. In practice, it is also necessary to distinguish between the intermediary's obligation to inform and the client's own obligation of due diligence, to avoid attributing all due diligence responsibilities to the intermediary. When courts in Beijing handle disputes over intermediary contracts, they review whether the intermediary has fulfilled the obligation to report truthfully in great detail.

IV. Practical suggestions and legal basis

Action suggestions: First, before signing the contract, require the intermediary to disclose important information about the subject matter and the counterparty in writing; Second, keep the intermediary's promotional materials, commitments, and communication records; Third, if any concealment or false statements are discovered, promptly fix the evidence and claim the return of the fee and compensation; Fourth, conduct necessary due diligence on your own and not rely solely on the intermediary. For matters involving corporate commercial activities and contracts, you can refer to the relevant provisions of the Civil Code of the People's Republic of China and other laws and regulations.Business and contract disputes in enterprisesFor those involved in real estate transactions, you can refer to the following information for reference.Real estate and construction project disputesLegal basis: Articles 961, 962, 963, and 964 of the Civil Code of the People's Republic of China (effective January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Advice

Firstly, it is the statutory obligation of intermediaries to report the facts truthfully. Secondly, those who intentionally conceal important facts or provide false information shall not request compensation. Thirdly, if any losses are caused, they shall also bear the liability for compensation. Fourthly, if the intermediary fails to facilitate the conclusion of the contract, he/she generally does not have the right to request compensation, but may agree on necessary expenses when necessary. In the event of disputes over intermediary contracts, the parties may resolve the disputes through legal means.Business and contract disputes in enterprisesYou will get a comprehensive solution for the service, which can be combined with real estate transactions if necessary.Real estate and construction project disputesFor plates involving the recovery of funds, you can refer to the relevant provisions.Creditor's rights and debts, and enforcementFor any questions regarding difficult situations, please feel free to consult us.Special servicesTeam.

VI. Frequently Asked Questions

Q1: Can an agent still collect a commission even if they conceal problems?

No. If the agent intentionally conceals important facts related to the conclusion of the contract or provides false information, thereby harming the interests of the client, he shall not be entitled to request payment of the remuneration according to Article 962 of the Civil Code, and shall bear the liability for compensation. The remuneration already received may be claimed for return.

Q2: What constitutes an important fact?

Facts that are sufficient to affect the client's decision-making and transaction conditions, such as the existence of mortgages, seizures, or major quality defects on the subject matter, the poor creditworthiness of the counterparty, or the existence of major litigation or credit default records. Trivial information unrelated to the conclusion of the contract is generally not included in this category.

Q3: Do I need to pay fees even if I don't successfully complete the transaction?

Generally, there is no need to pay a fee. If the agent fails to facilitate the conclusion of the contract, he/she shall not request payment of the fee, but may, in accordance with the agreement, request the principal to pay the necessary expenses incurred in the intermediary activities; if there is no agreement, he/she generally cannot claim the payment.

Q4: How to prove that the agent concealed the facts?

Preserve evidence. This includes the intermediary's written statements, promotional materials, commitment letters, chat records, and contract texts, as well as proof materials showing the actual condition of the subject matter, which can be used to prove that the intermediary concealed important facts or provided false information.

Q5: Can I ask the agent to compensate for the losses?

Yes. If the agent violates the obligation to report truthfully and causes losses to the client, he/she shall bear the liability for compensation. The scope of compensation is generally the actual losses caused by his/her fault, and the client needs to provide evidence of the amount of losses and the compensation should be commensurate with the degree of the agent's fault.

This article is written based on the common judicial interpretation in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Business and commercial legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.