Agency fees for sale
Sale: Agency fees
When the owner entrusts the mandate to sell his property to an agency, it is provided for the seller to pay planning fees. The latter constitute the commission of the real estate agent, they are paid once the sale is made, when signing the authentic deed.
In the context of a real estate sale, the seller may mandate a real estate agency to delegate the sale. In return, the real estate agent receives a fee, called agency fees. But this sum is due to the real estate agent only in the event that the latter has succeeded in selling the property entrusted to him. This means that agency fees are only paid when the sale materializes, i.e. when the sales agreement leads to the signing of the authentic deed at the notary.
If a real estate agent has been entrusted with a sales mandate but does not succeed in bringing it to a transaction; whether the seller withdraws his mandate or sells the property by his own means, the real estate agent does not collect his fees. This principle is also mentioned in the mandate that binds the real estate agency and the seller to each other, regardless of the type of mandate.
Who is responsible for paying agency fees?
In the majority of cases, when the transaction of the property is carried out through a real estate agency, the agency fees are the responsibility of the seller. Since he had the preference to mandate the real estate agent for the sale. Therefore, the agency fees do not accumulate at the displayed price, the price paid by the buyer will be the vast majority of the time expressed in agency fees included, ISP price.
The mandate must still specify which of the two parties will have to pay the agency fees. Because even if the seller is usually the party paying the fees, it is still possible to foresee that they are due by the buyer or divided equally between the two parties in some cases. As for example during transactions with very large amounts.
On the contrary, the notary fees paid by the buyer, being determined on the sale price, will increase by integrating agency fees. As a result, some real estate agencies can opt for the signature of the search mandate for buyers interested in the purchase of a property for which they have the mandate. In this way, agency fees are extracted from the sale price, thus reducing the notary fees to be paid when the transaction is finalized.
What do agency fees represent?
- The real estate agent first visits the property and estimates its price.
- He takes pictures of the property, writes the ad and publishes it.
- He responds to potential prospects, informs them and schedules appointments in order to visit.
- He carries out visits with interested buyers.
- He drafts the sales agreement as soon as a buyer is found.
- He can also be commissioned to involve a professional, carrying out for example the diagnoses.
In addition, the real estate agent can and must accompany his clients throughout the transaction process until the signing of the authentic deed is carried out.
How are agency fees determined?
Any agency is free to set its fees in the desired way, as long as certain rules are respected regarding the display of the latter. In general, agency fees are calculated by assigning a percentage of the sale price. Commonly it can oscillate between 3 and 10% of the price of the property depending on the agencies and the property itself. By extension, the higher the value of the property, the higher the agency fees will be. It is for this reason that real estate agencies decide to apply decreasing fees in stages.
- When the owner entrusts the mandate to sell his property to an agency, it is provided for the seller to pay planning fees.
- Constitute the commission of the real estate agent, they are paid once the sale is made, when signing the authentic deed.
- But this sum is due to the real estate agent only in the event that the latter has succeeded in selling the property entrusted to him.
- This principle is also mentioned in the mandate that binds the real estate agency and the seller to each other, regardless of the type of mandate.
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Posted on 21/10/2021 by
Andy LECUYER
