Buyers fee. - Page 2

Thanks. Den 

During our property search we viewed properties with 5 different estate agents and only one didn't charge a buyers fee. He was an English agent and he told us it was normal practice for agents to charge buyers and sellers a fee, although he didn't agree with it.

Good luck with your search.

When was this, because we recently bought a new place (admittedly in Andalucia) & it didn't cost us a penny in agent's fees & I've genuinely never heard of this practice. 

We had to put a 5k deposit down but that came off the buying price.

Maybe it's a new thing after Covid.

We purchased ours in 2018, but we had been looking in the Valencia region from 2016.

The conversation with the English agent I mentioned was in 2016. I got the distinct impression it was common practice.

Fair enough.

Seems we're just lucky then.

Nucleo estate agents charge the buyer €3500 and also charge the seller 

Just completed in January with Casa Manuel.. no buyers fee

People seem to be very confused about estate agents' fees in Spain.

The estate agent's fee for selling a property is, and has always been, 5%+VAT (IVA) of the selling price.

This is charged to the SELLER. The buyer is not expected to pay a 'buyer's fee' -- but the fact is the buyer supplies the 5% at the end of the day.

In some areas, 6% is the norm, especially where there are German buyers and German sellers. (6% is the norm in Germany, 3% by the seller and 3% by the buyer. So Germans are accustomed to 6%.)

That said, some agents advertise they'll sell a property for 2% or even 1%. Or whatever. The percentage is not mandatory.

While 5% seems high to Brits, traditionally, the estate agent ('API') does all the legal work, so there are (traditionally) no additional lawyer's fees or advertising costs.

However, speaking as an ex-Spanish estate agent, Spanish law tends to have a very 'Caveat Emptor' attitude. ('Let the buyer beware') and any property transaction is wide open to manipulation and outright fraud.

Which is why I always advised my clients to contract an English-speaking Abogado (lawyer) and not a 'Gestor'. (An accountant, basically, who does all manner of admin affairs on a client's behalf.)

The standard fee a lawyer will expect is 1% of the final price. (Paid by the BUYER.)

So the bottom line is this:- 5% is absolutely NORMAL in Spain. It could be less, and usually not more.

If you buy through an agent, the agent will normally have a simple, legal document signed by the SELLER who contracts to pay the commission agreed + the VAT at the notary signing. (It's called 'Encargo de Venta')

Have a good weekend!

Norm.

PS I should add I am currently in the process of selling my house here on Mallorca. It's 1.3m euros. I have contracted with several dozen different agencies and I'll be paying 5%+IVA when I sell. (Assuming it's through an agent and not a knock-on-the-door private buyer.) So I've agreed to pay a fee of some 60,000€ +21% vat.

PPS We're moving to Costa Blanca, hence my poking my nose in...

Hi Magicden,

As the buyer, you should NEVER pay any money to an estate agent.

Another urban myth you should be aware of is the "reservation fee", usually in the amount of €3,000, but can be as much as €6,000.  Estate agents in Spain will tell you this is "normal", but it has no basis in Spanish law.  If an agent tries to insist that you pay a reservation deposit, tell them that you'll pay it to your lawyer, but NEVER pay any money to an agent.  You should also appoint an independent lawyer (abogado), not one tied to the agent - you want them to be working to protect your interests, not those of the buyer and estate agent.  Once your lawyer has checked that the property title is free of liens, debts, etc., a sale contract will be drawn up and you will be required to pay a deposit to the value of 10% of the property purchase.  This 10% deposit is required by law and is legally binding - once paid, should you pull out of the deal, you forfeit the deposit, and if the seller pulls out, the buyer is entitled to claim twice that amount (although, in reality, the amount paid to the buyer is usually negotiated between the respective lawyers).

Kind regards,

Kim