Exclusive agency contracts in Bosnia: terms and commission

An exclusive agency contract means that, as the owner, you commit not to hire any other agency for the same property while the contract runs. If you sell through another agency anyway, you will usually owe the first agency its agreed commission. In the Federation of BiH (FBiH) the contract must be in writing and for a fixed term, and if no term is written in, it is treated as concluded for 12 months. No law sets the commission rate; it is agreed in the contract.

This page is general information, not legal advice. A lawyer or notary confirms the exact consequences of your own contract.

Which law applies where

Bosnia and Herzegovina has no single law on property agency work. It depends on where the property is:

• FBiH: Zakon o posredovanju u prometu nekretnina (Law on Real Estate Agency, Official Gazette of FBiH 75/21). Anything it does not cover falls back on the general law of obligations (contract law).
• Republika Srpska (RS): Zakon o posredovanju u prometu nepokretnosti (Official Gazette of RS 99/20).
• Brčko District: according to available sources, there is no separate agency law, so an agency contract is judged under the general rules of the Zakon o obligacionim odnosima (Law on Obligations). If you are selling in Brčko, check this with a lawyer.

Online you will often find rules from Serbia and Croatia, for example a fixed commission percentage or a fee owed after the contract ends. Those laws do not apply in BiH.

What exclusivity actually means

In FBiH

The law calls it isključivo posredovanje (exclusive agency, Article 16):

• you, as the client (nalogodavac), may commit not to use another agent for the same deal, but this must be expressly agreed in the contract,
• if, while the contract runs, you close the deal through another agency, you owe the first agency the agreed commission plus any actual extra costs it incurred,
• when you sign, the agency must specifically warn you what the exclusivity clause means and what its legal consequences are. Failing to give this warning is listed in the law as an offence.

In RS

The law calls it ekskluzivno posredovanje (Article 25). The rule is similar: through an express clause you commit not to hire another agency for that property during the agreed period. The difference is formal: before signing the agency contract, you sign a separate statement accepting exclusive agency. FBiH has no such requirement. If an RS agency does not offer you this statement, ask why.

What if you find a buyer yourself

This is the most common source of disputes. The FBiH rule, in the text available, speaks of a deal closed through another agent. It does not expressly say whether the agency is owed commission if you sell privately, with no agency at all. The RS position is not clearly settled either.

In practice, some BiH agencies and property portals describe exclusive contracts as requiring commission no matter who brings the buyer, including you. That is contract wording, not the law, so read that clause carefully before signing. If you want to keep the right to sell privately, for example to a relative or a neighbour, write it into the contract.

How long the contract lasts

In FBiH (Article 15):

• the contract must be in writing and for a fixed term,
• if no term is agreed, it is treated as concluded for 12 months,
• the term can be shorter or longer than 12 months, but there must be one,
• the parties can extend it by agreement, more than once.

The RS draft law had the same one-year default where no term is agreed. The final text should be checked.

In FBiH, the contract cannot depart from the law unless the law expressly allows it or the change clearly favours the client. The RS draft law contained the same rule; the final text should be checked.

What term makes sense

BiH property portals say exclusive contracts run from a few months to several years. For a city flat with a realistic price, a shorter term is usually enough, and you can extend it if the agency does what it promised. A long term binds you even when you are unhappy.

Ending the contract and the period afterwards

Termination is covered by Article 17 of the FBiH law and Articles 26 and 27 of the RS law. Check the termination terms in the contract itself and ask the agency:

• how, and with what notice period, you can end the contract,
• whether the contract says commission is owed if you sell, after it ends, to a buyer the agency introduced. No BiH law clearly sets such a duty, so it depends on the wording you sign.

Commission (posrednička naknada)

When it is earned

• FBiH: you pay the agreed commission if the deal the agency worked on is concluded. The contract may also set the payment deadline and conditions, liability insurance and security for the fee.
• RS: the right to commission arises when the deal is concluded, unless the parties agreed it arises earlier, at the predugovor (preliminary contract). The agency must tell you in advance the amount of the fee and the cost of any added services.

If commission is tied to the preliminary contract and the sale later falls through, who owes what becomes complicated. See our guide on the pre-contract and deposit (kapara).

How much

No law in BiH sets a fixed percentage or a cap. The amount is a matter of agreement, and percentages you see on Croatian websites do not apply here. When negotiating, ask:

• is the commission a percentage or a fixed amount,
• does it include VAT (PDV) or not,
• who pays: the seller, the buyer or both,
• are there extra costs (photography, advertising), and are they payable even if the property does not sell.

Benefits and obligations

What you can gain

• one point of contact instead of several agencies calling the same pool of buyers,
• one advert, one price and one set of photos everywhere, instead of several listings at different prices,
• discretion, because viewings come only with screened buyers,
• the agency's duties (advertising, reporting, viewings) written into the contract.

These benefits are not automatic. They exist only if they are in the contract.

The agency's obligations

• it may not act without a contract or advertise your property without an agency contract (FBiH; the RS draft law had the same ban),
• it must have written general terms of business and display them visibly (FBiH),
• in RS it must find a buyer and connect you, and give you an objective opinion on the price.

Your obligations

• show the agency the original property documents,
• allow viewings,
• pay the agreed commission,
• not hire another agency while exclusivity runs.

How to choose an agency

Legal checks

• FBiH: only agents entered in the Registar posrednika (register of agents) kept by the Federal Ministry of Trade, with a seat or branch in FBiH, may work for a fee. Individual agents must pass a professional exam and be entered in the directory of agents. The Federal Ministry of Trade and the Federal Inspectorate supervise. Unregistered agency work carries fines of 5,000 to 30,000 KM for a company.
• RS: the agency needs a decision (rješenje) from the competent ministry and an entry in the RS register of agents.

Ask for the decision or register number and check it with the ministry.

Checklist before you sign

1. Is the agency in the register?
2. Has the agent you deal with passed the professional exam?
3. Are the general terms of business written and available?
4. Is the contract term clearly stated?
5. Is exclusivity expressly stated and explained to you (in RS: a separate signed statement)?
6. Is the commission amount stated, and when it is earned?
7. What does it say if you find a buyer yourself, and about the period after the contract ends?
8. What concrete duties does the agency take on: where it advertises, how often it reports, who runs viewings?

Questions that reveal quality

• How did you arrive at the suggested price? An agency that promises the highest price to win an exclusive often asks for a reduction later. You can check the price yourself with our guide on how to price a property for sale.
• Do you check the ZK izvadak (land registry extract) and legalisation status before advertising?
• Do you visit the property in person, and who takes the photos?

Common mistakes

• signing without a stated term and assuming you can cancel at any time,
• signing an exclusive with one agency while another agency's advert is still running,
• overlooking the commission clause for buyers you find yourself,
• agreeing commission only verbally, or only as a percentage with no mention of VAT,
• a long term with no written duties for the agency.

An example

The owner of a 54 m² two-room flat in Čengić Vila, Sarajevo, signs a six-month exclusive contract. Comparable flats in DMI's listings are priced at around 309,000 to 339,000 KM, and the median asking price across our listings is about 5,722 KM per m². The contract states: commission as a fixed amount with a note on VAT, earned when the sale contract is signed, and the owner keeps the right to sell to a family member without commission. The agency commits to publish the advert within one week and to send a report on enquiries every 14 days.

In the third month, another agency says it has a buyer. If the owner sells through it, the first agency is owed the agreed commission and actual costs. The safe route is to refer the buyer to the first agency or wait until the contract ends, after checking whether the contract has a clause on buyers the agency introduced. If the agency is not meeting its written duties, the owner has grounds to discuss ending the contract.

If you are selling while living outside BiH, an exclusive contract usually simplifies communication. See selling property in Bosnia while living abroad.

How DMI helps

DMI is a small agency with eight flats currently listed, all in Sarajevo. We visit every property in person and check the land registry extract, legalisation and photos before publishing. Buyers abroad are offered video tours. Before you sign, we explain every clause of the contract, including exclusivity, term and commission, and write down exactly what we will do for you. If you are thinking of selling, start at Sell your property.