Index
During a real estate sale, one of the most common questions is who should pay the real estate agency. This aspect is often a source of doubt for both the seller and the buyer. Commissions represent a significant portion of the transaction costs and influence the final price of the property.
In this article, we analyze who is required to pay the real estate agency, exploring the different situations and the regulations in force in the Civil Code.
Sell your house.
Fixed 1% commission.
The valuation is instant and free.
Sell now
Sell your home.
Fixed commissions at 1%
The valuation is instant and free.
Sell now
Introduction to Real Estate Selling
Role of the Real Estate Agency
The real estate agency plays a crucial role in the sale of a property. It facilitates the meeting between seller and buyer, managing key phases such as the valuation of the property, the promotion of the house and the organization of viewings. Furthermore, they offer advice on contracts and regulations, helping the parties comply with laws, including aspects such as retention of title and conditional sale.
Relying on an agency can speed up the sale and ensure a fair price, but it is essential to be aware of additional expenses, such as commissions.
Importance of Mediation
Mediation carried out by a real estate agency is essential to ensuring a transparent and secure transaction. Real estate agents, acting as neutral intermediaries, represent the interests of both the seller and the buyer. Thanks to their experience and in-depth knowledge of the market, they are able to provide valuable advice on how to best position the property, negotiate the price, and address any legal issues.
Furthermore, their ability to manage negotiations significantly reduces the risk of misunderstandings or conflicts between the parties involved. Professional mediation ensures that all procedures comply with local laws, minimizing the risk of costly mistakes or future legal disputes.
In short, the intervention of a real estate agency not only facilitates the sale but also offers greater peace of mind to all parties involved.
Legal and Contractual Obligations
Legal and contractual obligations are a crucial aspect of real estate sales. Before proceeding with the transaction, it is essential that all parties comply with current regulations to avoid future legal problems.
In this context, the real estate agency plays a key role, offering expert advice on necessary documents, such as the preliminary contract, the notary deed, and energy performance certificates. Real estate agents assist in drafting and reviewing contracts, ensuring they are clear and compliant with local laws. They also provide support in managing any mortgages, liens, or other encumbrances on the property. It is essential that the seller and buyer understand their rights and obligations, including commission payment terms.
Relying on a competent real estate agency reduces the risk of errors and ensures a safe and legally compliant sale.
Who pays the real estate agency for the sale?
Seller: responsibilities and costs
For the seller, the responsibilities and costs associated with the real estate agency may vary based on the agreements stipulated. In many cases, the seller is required to pay a service commission to the agency, which is usually calculated as a percentage of the final sale price. This commission covers various services, including property valuation, advertising, viewings, and consulting during negotiations. It is important for the seller to carefully read the contract with the agency to clearly understand the terms and costs involved.
Some contracts also provide for a penalty in the event of early termination. Therefore, it is essential that the seller is fully aware of their financial responsibilities before committing to a real estate agency.
A careful cost analysis helps avoid surprises and better plan the transaction budget.
With Casavo, commissions are fixed at 1%, so you already know what to expect and what the price will be.
Buyer: when and why to pay
The buyer may also be required to pay the real estate agency, depending on pre-existing agreements and local customs. In some jurisdictions, it's common for the buyer to cover the agency's commission, especially if they've used search and consulting services. These services include property selection, guided tours, and assistance with price negotiation.
Paying the agency can offer the buyer significant benefits, such as access to a wide range of properties and the security of a transparent and legally compliant transaction. However, it is essential that the buyer clarify the payment terms with the agency from the outset, carefully reading the contract to avoid misunderstandings.
Understanding when and why to pay the agency helps the buyer better plan their budget and make more informed decisions when purchasing the property.
Shared Expenses: A Possible Option
In some cases, the real estate agency fees may be shared between the seller and buyer. This agreement must be clearly defined in the sales contract to avoid misunderstandings. Sharing expenses can reduce the financial burden on both parties and facilitate the closing of the sale.
What Does the Commission Include?
The mediation of the real estate agency is crucial to ensuring a transparent and secure transaction. Real estate agents, as neutral intermediaries, represent the interests of both parties, providing advice on how to position the property, negotiate the price, and address any legal issues. Furthermore, they manage negotiations, reducing the risk of misunderstandings or conflicts between seller and buyer.
Legal and contractual obligations are fundamental: the agency offers advice on documents such as the preliminary contract, the notarial deed, and energy certifications, ensuring that everything complies with current laws and that the rights and obligations of seller and buyer are clear.
Relying on a competent agency reduces the risk of errors and guarantees a safe and regulatory-compliant sale.
Trust Casavo, our consultants will guide you step by step through the sale!
Tips for Save Money
Negotiating commissions with your real estate agency can lead to significant savings. Comparing fees from different agencies and discussing terms before signing the contract helps reduce overall costs. Choosing the right agency is crucial to getting the most out of your sale. It's advisable to do thorough research, compare agencies, read online reviews, ask for references, and evaluate not only the commissions but also the services offered.
An agency with slightly higher commissions may provide a more comprehensive and professional service, reducing hassle during the transaction. Considering the agency's specialization in the type of property being sold or purchased can facilitate a more advantageous transaction.
Conclusion and Final Reflections
Understanding who should pay the real estate agency is essential to making an informed purchase, with the seller usually responsible for the commissions, but the buyer can also contribute if they have used the agency's services.
The agency's commission includes services such as property valuations, advertising, and legal advice, but it is also important to consider additional and hidden costs. Choosing the right agency, considering its reputation, services offered, and specialization, is essential for an efficient and smooth transaction.
Sellers should include commissions in their budget and be realistic about the selling price, while buyers should be aware of extra costs and clarify from the outset who is responsible for paying commissions.
Open communication and transparent negotiation between the parties can improve mutual trust and make the process smoother.
Frequently Asked Questions
When buying or selling real estate, many common questions arise regarding who should pay the real estate agency. Here are some of the most frequently asked questions with answers to clarify the main doubts.
Who pays the agency commission?
Generally, the commission is paid by the seller, but in some cases it may be split between the seller and the buyer or paid entirely by the buyer.
Are commissions negotiable?
Yes, commissions can be negotiated. It is advisable to discuss the terms with the agency before signing any contract.
What does the commission include?
The commission covers various services including property valuation, advertising, viewing management, and legal and contractual advice.
Are there any hidden costs?
There may be additional costs such as administrative fees, extra advertising, or penalties for early termination. It is important to read the contract carefully.
Is it worth considering alternatives to the agency?
Yes, selling or buying independently or using freelance consultants can be a valid alternative to save on commissions.
Not sure where to start?
We do, request a free consultation.
Sell now
Not sure where to start?
We do, request a free consultation.
Sell now