Is it illegal to bypass the intermediary and trade privately?

It is illegal to conclude a contract directly by bypassing the intermediary according to Article 965 of China's Civil Code.

There are huge trading risks in direct transactions between buyers and sellers. Buying a house and skipping the intermediary private transaction is an act that buyers and sellers or one party sign a sales contract privately in order to avoid paying intermediary fees and other obligations.

The behavior of "jumping intermediary" is also called "jumping single", which will not only make the intermediary's efforts unrewarded, but also increase the risks of real estate transactions, such as potential risks such as housing property rights issues, capital security and property disputes.

Real estate agents have the right to use the trading opportunities provided by the intermediary to directly bypass the intermediary and ask the client to pay the intermediary fee. If the customer refuses to pay, the real estate agent has the right to file a lawsuit.

Skipping the intermediary to conclude a house purchase contract with the seller, whether this behavior constitutes a "jump order" in industry terminology depends on whether its behavior meets the following requirements:

(a) whether the intermediary service has been accepted.

(two) whether to bypass the intermediary and directly conclude a contract with the seller.

(three) whether to use the trading opportunities or information provided by the intermediary to conclude the contract.

In the current laws and regulations, the Civil Code clearly stipulates the legal consequences of "jumping the bill" and explicitly prohibits "jumping the bill". In judicial practice, trials are mainly based on the principle of good faith and the provisions on intermediary contracts.

legal ground

civil law

Article 964 Where the broker fails to facilitate the conclusion of the contract, he may not request payment of remuneration; However, customers may be required to pay the necessary fees for intermediary activities as agreed.

Article nine hundred and sixty-five

After accepting the services of the broker, the principal shall pay remuneration to the broker if he uses the trading opportunities or media services provided by the broker to bypass the broker and directly conclude a contract.

Article 963 Where the broker facilitates the formation of a contract, the principal shall pay the remuneration as agreed. If the remuneration of the broker is not agreed or clearly agreed, and cannot be determined according to the provisions of Article 510 of this Law, it shall be reasonably determined according to the services of the broker. Where an intermediary provides media services for concluding a contract, the remuneration of the intermediary shall be borne equally by both parties to the contract.

If the intermediary facilitates the establishment of the contract, the expenses of the intermediary activities shall be borne by the intermediary.