[Direct answer]In the Beijing area, the remuneration for an intermediary contract (brokerage) is determined by the agreement between the parties. If there is no agreement or the agreement is unclear, according to Article 963 of the Civil Code of the People's Republic of China, if the intermediary facilitates the conclusion of the contract, the client shall pay the remuneration as agreed. If there is no agreement on the remuneration or the agreement is unclear, the parties may supplement it by agreement. If it is still uncertain, the remuneration shall be determined reasonably according to the intermediary's labor. If the intermediary fails to facilitate the conclusion of the contract, he shall not request payment of the remuneration, but may request the client to pay the necessary expenses incurred in the intermediary activities. The amount of the remuneration shall be fair and reasonable. If the agreement is grossly unfair or violates mandatory provisions, the parties may request adjustment. It is recommended to specify the remuneration standard, payment conditions, and expense boundaries when signing the intermediary contract. For more details, please refer to the following link:Legal services for corporate commercial and contract disputes.

1. Problem background and typical scenarios

Intermediary contract disputes are common in scenarios such as real estate leasing and sales, investment and financing matchmaking, labor and project introduction. Typical cases include: disputes over the commission rate or who should bear the commission in a house sale transaction; investment intermediaries claiming high service fees but the project not actually being implemented; and disputes over the return of fees after agreements involving "fake marriage" and "house registration" that are in the name of intermediary services but in fact evade policies are deemed invalid. Many clients fail to specify the prerequisites for payment of fees when signing contracts, and later refuse to pay on the grounds of "the deal not being successful", while ignoring whether the contract was actually concluded. Related fee disputes can be resolved in conjunction with the above-mentioned provisions.Creditor-debtor relations and enforcement case servicesHandle it.

II. Key points of contention

There are three key points. Firstly, the prerequisite for payment of compensation: Whether the agent actually facilitated the conclusion of the contract is the core of requesting compensation; if it fails to do so, the agent can generally only claim necessary expenses. Secondly, the determination of the compensation standard: If the agreement is unclear, it shall be reasonably determined according to the intermediary services. If it is grossly unfair or violates regulations, it can be adjusted. Thirdly, the validity of the agreement: The "intermediary" agreement aimed at evading policies such as household registration and purchase restrictions may be invalid due to violating public order and good customs, and the paid fees may face refund. For real estate intermediary services, reference can be made to the relevant provisions.Real estate sales and construction project servicesDetermine the nature of the contract.

III. Professional analysis by Henglue Lawyers

Among the contract disputes handled by our firm, the validity of intermediary service agreements and the issue of fee refunds are particularly representative. In the case of "the invalidity of the fake marriage agreement for household registration", Zhang Na signed a "Consulting Intermediary Service Contract" with a legal consulting company in February 2023 and paid a service fee of 150,000 yuan. However, her fake marriage agreement for household registration was later confirmed to be invalid for violating public order and good customs. Xue Shuhua's team of lawyers from Henglue Law Firm systematically fixed evidence of the intermediary agreement, transfer of funds, and communication during the litigation, arguing that the agreement to evade household registration policies through fake marriages was invalid. The court ordered the direct recipient to refund 100,000 yuan, and the intermediary service fee contract could be claimed for refund in a separate case as it was also suspected of being illegal. This case highlights that the acquisition of intermediary fees is premised on the legality of the agreement and the authenticity of the services. Those who seek to profit from systemic loopholes will ultimately face legal condemnation. This case was handled by Beijing Henglue Law Firm.Xue SuhuaThe attorney (practice certificate number: 11101201211769926, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis is Articles 961 to 966 of the Civil Code of the People's Republic of China (effective January 1, 2021) (definition of intermediary contracts, remuneration, necessary expenses, obligation to report truthfully, etc.), as well as provisions on contract validity and public order and good customs. Practical advice: When signing an intermediary contract, clarify the remuneration standards, payment milestones, and the determination of "facilitating the establishment of the contract"; require the intermediary to truthfully report contract opportunities and relevant matters to prevent concealment of important facts; be vigilant against intermediary agreements aimed at evading policies to avoid the invalidation of the agreement leading to difficulty in recovering fees; when the contract is not successfully established, only necessary expenses need to be borne, and the remuneration can be refused. For cross-border intermediary services, relevant provisions can be combined with the Civil Code of the People's Republic of China and other laws and regulations to ensure legal compliance.Financial capital and cross-border legal services involving foreign affairsEvaluation.

5. Henglue Law Firm's Advice

To determine the intermediary's remuneration, first check whether the intermediary has actually facilitated the transaction, whether the agreement is legal, and whether the terms are clear. If the agreement is legal and has successfully facilitated the conclusion of the contract, the client should pay the fee according to the agreement; if the terms are unclear, the fee should be determined reasonably based on the actual work performed; if the transaction has not been successfully facilitated, only the necessary expenses should be paid. Particularly, be vigilant of intermediary agreements that circumvent policies such as household registration and purchase restrictions. Once such agreements are deemed to violate public order and good customs and are declared invalid, the process of recovering the paid fees will be long and uncertain. Before signing the contract, review the terms carefully and keep evidence of the service process. In case of disputes, consult a lawyer in a timely manner. For more information on contract risk prevention, please refer to the following link:Special services and other case services.

VI. Frequently Asked Questions

Q1: Can an agent still demand payment even if they fail to secure a contract, and would the court support this?

In principle, this is not supported. According to Article 963 of the Civil Code, if the intermediary fails to facilitate the conclusion of the contract, he shall not request payment of the remuneration, but may only request the principal to pay the necessary expenses incurred in the intermediary activities. Whether "facilitation" is the core: if only information is provided and the contract is not actually concluded, or the contract is illegal and invalid, the request for remuneration will be difficult to gain support; if a valid contract has been concluded, the principal shall pay the fee according to the agreement. The court will also review whether the intermediary has truthfully reported important facts and whether there is intentional concealment. Therefore, the claim for payment even if the deal fails is usually not tenable, but the necessary expenses incurred (such as travel and registration fees) can be claimed separately, and the receipts of the expenses should be kept.

Q2: What evidence do I need to prepare for a dispute over an agent's commission?

Key evidence includes: the intermediary or agency contract (proving the compensation standard, payment conditions, and the determination of "facilitation"), proof of the conclusion of the intermediary contract (such as the signing documents between the buyer and the seller, and the confirmation of the transaction), records of the intermediary's services (such as showing the property, arranging communication, and reporting information), receipts for necessary expenses (travel, registration, and appraisal fees), and records of payment reminders and communication regarding disputes. The organization of evidence should focus on three points: "whether an effective contract was facilitated", "whether the compensation agreement is clear", and "whether the expenses are necessary". The more complete the materials are, the better they can support each party's claims; if the agreement is vague, the intermediary can reasonably claim compensation based on the actual services provided to avoid being charged exorbitant fees.

Q3: How much does it cost to hire a lawyer to handle an intermediary dispute?

The fees include litigation fees and attorney fees. For disputes over agency compensation, the litigation fees shall be accumulated in accordance with the request amount in accordance with the "Measures for the Payment of Litigation Fees", and shall be borne by the losing party; the attorney fees shall be calculated based on the scope of verification, the subject amount and the workload, and shall be charged on a piecework basis or according to a percentage of the subject amount, without a unified pricing, subject to the entrustment contract. For disputes involving the review of the validity of the intermediary agreement and the provision of evidence by multiple parties, the workload is relatively high. It is recommended to require the law firm to provide a detailed fee breakdown before entrustment, clarify whether it includes third-party fees such as travel and preservation, and compare the amount of compensation or refund that can be claimed with the cost; for small-amount disputes, it is preferable to choose non-litigation negotiation or consultation to avoid cost inversion.

Q4: How long does it usually take to resolve a dispute over intermediary fees?

The duration of the litigation process depends on the complexity of the case and the type of proceedings. For intermediary fee disputes with clear facts and defined subject matters, the first-instance ordinary proceedings last six months and the simplified proceedings last three months, with simpler cases being resolved faster. However, if the dispute involves the validity of the intermediary agreement, the need to add multiple parties, or an audit, the duration will be extended accordingly. For appeals against judgments, the second-instance proceedings typically last three months. After the judgment takes effect, if the other party fails to perform their obligations, enforcement action will be initiated, and the recovery time will depend on the progress of asset investigation and control. It is recommended to preserve evidence of the service process during the contract signing stage, send written reminders and settlement letters promptly when disputes arise, attempt to resolve disputes through non-litigious means whenever possible, and apply for property preservation simultaneously when litigation is necessary.

Q5: I signed an intermediary agreement, but the service hasn't been provided. What should I do specifically?

It is recommended to proceed in four steps: First, verify the "facilitation" standards and service content stipulated in the agreement to confirm whether the intermediary has actually fulfilled its obligations of truthful reporting and matchmaking; Second, fix the evidence, collect the intermediary contract, communication records, payment vouchers, and proof of non-performance to determine whether it is a failure to facilitate or a fundamental breach of contract; Third, in accordance with Article 963 of the Civil Code, claim that the intermediary should refuse to pay the remuneration if it fails to facilitate, only bear necessary expenses, or claim compensation for false reporting and concealment of facts; Fourth, if no agreement is reached through negotiation, sue within the statute of limitations and apply for property preservation to freeze the fees already received by the intermediary. Throughout the process, keep all evidence and, if necessary, entrust a lawyer to draft a settlement and accountability plan to minimize losses.

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. →Corporate commercial legal services·Attorney Xue Suhua·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public 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.