Required Clauses in Armenia’s New Real Estate Brokerage Agreement: A Practical Checklist and Template

With Armenia's brokerage profession shifting into a licensed, transparent framework, a clear written brokerage agreement is no longer optional—it's the operating manual for every deal. This practical checklist shows exactly what to include in a real estate service contract in Armenia, with drafting tips and a broker commission clause roadmap you can adapt to your listings.

Why Armenia's New Broker Rules Matter: Licensing

Armenia is moving from an informal brokerage market to a regulated profession: real estate brokers are expected to register, obtain qualifications, and comply with tax rules, with noncompliance subject to penalties. This shift puts consumer protection, disclosure, and documentation at the center of every listing and buyer engagement.

Market Scale and Transparency

Deal volume underscores why standard contracts matter. Armenia recorded about 220,000 real estate transactions in 2023, and more than 21,000 deals in November 2024 alone. The reform also introduces a unified online platform to register brokerage contracts and deals, curbing off-book activity and increasing market transparency.

Mandatory Written Contract: Required Fields

Under the Draft Law on Realtor Activity, every brokerage engagement must be in writing and include the following fields:

• Scope of services (e.g., listing, marketing, viewings, negotiation, coordination)
• Property identification: address and cadastral ID
• Proposed listing price or target price
• Broker's fee/commission and payment terms
• Parties' obligations and liability provisions
• Term and termination conditions
• Progress reporting to the client
• Dispute resolution clause
• Insurance details if applicable

In addition, all brokerage contracts and transaction details must be entered into the unified state platform, so build an explicit data-use and platform submission consent into the agreement.

Quick Compliance Checklist

Clause / Field	Status	Source
Written form	Required	Draft Law
Scope of services	Required	Draft Law
Property address + cadastral ID	Required	Draft Law
Price and broker's fee	Required	Draft Law
Obligations, reporting, liability	Required	Draft Law
Term and termination	Required	Draft Law
Dispute resolution	Required	Draft Law
Exclusivity (up to 6 months)	Optional (capped)	Draft Law
Platform entry and data consent	Required (platform logging)	Platform requirement

Legal Basis and Statutory Citations

• Draft Law on Realtor Activity: written-form contract; mandatory fields; progress reporting; term/termination; liability; dispute resolution; optional exclusivity capped at six months.
• Unified online platform to log brokerage contracts and deals to enhance compliance and transparency.
• General civil-contract principles under Armenia's Civil Code also apply to service and agency-type agreements unless superseded by special rules.

Defining Scope of Services and Parties' Obligations

Scope of Services

Describe precisely what the broker will do. Typical inclusions: property valuation support (non-binding), listing preparation, professional photography, online and offline marketing, arranging viewings, buyer screening, offer handling, negotiation support, and coordination to closing. The written agreement must set out the scope to align expectations and meet the Draft Law's mandatory-content requirement.

Property Identification

Always include the full property address and the cadastral identifier. These are specifically listed as required data points in the brokerage contract.

Parties' Obligations and Liability

Broker duties: act diligently, market the property through agreed channels, report progress periodically, and maintain confidentiality within agreed limits.

Client duties: provide accurate information and documents, allow access for viewings, refrain from actions that undermine the broker's performance, and pay the commission per the agreed terms.

The Draft Law requires obligations, liability, and progress reporting to be specified in the contract to protect both sides.

Progress Reporting

Set a reporting rhythm (e.g., weekly marketing log plus a monthly performance summary) and the channels (email/CRM). The Draft Law explicitly highlights progress-reporting to the client as a contract element.

Exclusivity, Duration, and Termination

Exclusivity: Allowed by mutual agreement but limited to six months, preventing indefinite lock-in.

Duration: State the start date and end date or the event that ends the mandate (e.g., sale, lease execution).

Termination: Include cause-based termination (material breach, non-performance) and optional no-fault termination with notice, consistent with the Draft Law's requirement to describe term and termination conditions.

Data, Privacy, and Platform Entry

Because brokerage engagements and deal details must be logged on the state platform, add clauses confirming the client's consent to submit contract and transaction data to the platform and to process personal data for that purpose. Tie your internal data retention to the contract term and legal requirements. For general tax and reporting considerations, see our guide to taxes in Armenia.

Commission and Payment Terms: Fee Disclosure

Broker Commission Clause (Armenia): What to Include

The contract must disclose the broker's fee and payment terms. To make your broker commission clause Armenia-ready, specify:

• Commission basis: percentage of sale/lease price, fixed fee, or blended model.
• Trigger for earning: on signing of sale/lease; on registration; or on funds received (choose one and define "deal concluded"). General civil-law principles apply alongside the sectoral rules.
• Payor: seller/landlord as primary obligor; buyer/tenant if agreed.
• Split arrangements: if co-broking occurs, detail how and when splits are handled.
• VAT/taxes: state whether commission is VAT-inclusive or -exclusive, and require compliant invoicing and tax remittance under the new compliance framework. See our overview of Armenia's tax rules.
• Expenses: pre-approve reimbursable marketing costs (e.g., premium listings, staging) and cap them.
• Protection periods: post-termination tail for named prospects introduced during the mandate.

Invoicing and Payment Logistics

• Invoicing schedule: issue invoice upon the commission trigger; define payment deadline and method.
• Receipts/compliance: maintain documents to support platform entry and tax reporting.
• Late payment: interest or penalties after a grace period.
• Set-off: clarify whether the client may set off claims against commission.

Dispute Resolution

A dispute-resolution clause is a required element of the brokerage agreement. Choose Armenian courts at the property's location or a specified court in Yerevan, and add a negotiation/mediation step before litigation. Define governing law as the laws of the Republic of Armenia.

Practical Drafting Tips

• Use plain, measurable service descriptions and deadlines to satisfy the progress-reporting obligation.
• Embed the cadastral ID prominently to avoid disputes over "which property."
• Keep exclusivity periods modest and compliant (≤6 months) and pair them with deliverables.
• Align your engagement letter, platform filings, and invoices to ensure audit-ready consistency.
• If you operate via a company, ensure your corporate details match your registration—see business registration in Armenia.

Conclusion

A precise, compliant real estate service contract in Armenia is now central to winning mandates, protecting fees, and navigating the state platform. By covering scope, property ID, fee disclosure, exclusivity, duration/termination, data and privacy, and dispute resolution, your Armenia brokerage agreement template will stand up to scrutiny, minimize disputes, and accelerate closings. For tailored terms and a quick legal check, get in touch.