Index
Contract commissions are the main source of income for real estate agencies. Every time the parties agree on a sale or rental thanks to a broker, in fact, they pay a fee for the services performed. In this article we explain everything there is to know about this. What you need to know about when the commission is paid to the real estate agent and how much it is on average.
When the right to the real estate agent's commission matures
Among the various duties of the real estate agent, the most important concerns the mediation work between those who sell and those who buy a house, or between tenants and landlords. This function is fundamental for finding a meeting point between the people involved and encouraging them to conclude the negotiation. The right to compensation for this role is also recognized by the Civil Code and cannot be denied.
Generally speaking, both parties pay the agency for the services provided, but different solutions can be provided through written agreements.
If you are interested in when the real estate agent is entitled to the commission, know that the right matures as soon as a legal bond is formed between the people involved in the agreement that commits them to sign the contract. In the case of sales, it is The signing of the preliminary agreement is sufficient: for those who have followed the mediation, it is irrelevant whether the preliminary agreement then materializes or not into a complete sale with the deed.
The situation is different if the agreement fails due to faults or shortcomings attributable to the agent. If, for example, he has provided incorrect information, hidden abuses or other urban planning irregularities, he loses any claim on payment and risks legal consequences for liability. civil.
How much commission does a real estate agent earn?
Commissions are among the items that make up the monthly earnings of a broker. If you work in an agency, you usually have access to a fixed compensation that varies based on your seniority and the type of properties you deal with, bonuses linked to results, and a percentage calculated on the contracts concluded.
We know when the real estate agent's commission is due: now let's see how much it amounts to on average. Agencies receive their compensation in proportion to the value of the negotiations completed. For sales, this share is calculated starting from the selling price, while for rentals, the annual rent is taken into account: if you close a deal for an apartment for 1,000 euros a month, you must therefore start from 12,000 euros.
A portion of the proceeds is then paid to the agent who followed all the phases of the negotiation up to the signing.
The law does not establish unequivocal coordinates on how much a real estate agent receives in commission. The Chamber of Commerce indicates reference values at the regional level, on average 2-4% to be requested from both parties. The conditions change based on the vitality of the local market: in a dynamic city like Milan, commissions will be higher. higher than in a provincial location without any particular attractions.
The agency then gives you a portion of its revenue, which we can estimate at around 5%, an index that grows based on the number of registered agreements and the prestige of the properties you manage to sell.
Let's take a numerical example: you oversaw the sale of a property valued at €100,000 on behalf of your company with a fee set at 3% of the value. After signing the preliminary agreement, a total payment of €6,000 is received from both parties. The agency gives you 5% of the proceeds and therefore gives you 300 euros for having concluded the sale.
When is the commission due to the real estate agent without a mandate
We conclude our journey into real estate commissions with a frequent case recently settled by a ruling of the Court of Cassation.
It happens that an agency or a freelancer takes care of a negotiation even in the absence of an explicit mandate, that is, without a formal assignment that attributes the role of intermediation.
In ideal practice, the person selling the house grants you the role of mediation through a written contract that regulates the details of the agreement and presents a similar document to those who turn to you to find accommodation. In practice, the stipulation of the mandate agreement is very often omitted and one relies on the simpler oral agreement. When an agent puts in contact those interested in selling with those looking to buy, he performs his role as mediator even in the absence of a written assignment.
The ruling of the Supreme Court states that the presence or absence of a formal assignment is irrelevant to the liaison function actually performed. The text of the ruling clarifies that "putting the parties in contact" constitutes "the indispensable antecedent" to reach the conclusion of the contract and determine when the real estate agent's commission is due.
The answer to the question when the right to the real estate agent's commission matures is therefore: always at the time of the agreement between the two parties, even without an explicit mandate. The role of intermediaries like you is precisely that of putting people in contact. A seemingly simple task, which requires patience and commitment. To help agencies in their activities We created the Casavo partner program, a system of benefits and technological tools that simplify your work in real estate. Come and discover it.
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