Estate agent fees - Page 3

Mags44 wrote on Fri Aug 19, 2022 2:42pm:

The estate agent is contracted by the vendor to sell his/her property and the fees should be paid by him/her and not by the buyer, who does generally not sign any contract with any estate agent! The buyer is free to go to whichever estate agent he/she likes, who may be marketing the property that...

Read more...

... they want and they do not pay anything for this. There is often more than one agent selling each property but sometimes the vendor is offered better fees if he/she only signs up a single agent. If you have an agent trying to get the selling fees from you, then I would suggest that you find a different agent! The vendor pays for agents' fees for selling the property and the Plus Valía tax, if applicable (this is the increase in land value since the property was last sold and affects the price that the vendor can ask for the property, so is to his/her benefit). The buyer pays for his/her abogado to do the legal work, the Notary for the actual signing, and the government taxes due on the purchase. If buying a resale property, your abogado and the Notary, should ensure that any outstanding bills such as electricity, water, IBI (council tax) community charges etc. are paid or the monies have been retained from the amount that the vendor gets in his/her hand on the day of the signing to cover these debts. Any debts left on the property after the signing at the Notary, will be the responsibility of the new owner of the property to pay off, so ensure that your abogado does his/her job properly! It is not common, in Spain at least, for the buyer to pay for the estate agent's fees! I worked in real estate here for 10 years and never, ever came across this. The person who signs a contract with the agent is the person who should be paying for the service that they have contracted!

Gem wrote on Sat Aug 20, 2022 2:42am:

Excellent summary Mags. 

Dave289 wrote on Sun Aug 21, 2022 8:09pm:

Is there a time limit between paying the 10% deposit and completion in Spain ?

We paid our 10% deposit (half to the estate agent, half to the solicitor) on 25th April and 12th May.

Read more...

It took 5 versions of the sales contract until there were no errors. It took the solicitor 7 weeks (9th May to 30th June) to send us the Power of Attorney forms that we needed to get notarised locally, which were wrong, so the corrected PoA was sent on 8th July.

The first date offered to us by the solicitors (on 11th August) with a Spanish Notary to complete was 19th August (delays because the owner had died, and the property was put on the market before probate had been completed, so the inheritees couldn't sell a property they didn't yet own, although we were only told about this 3 days AFTER we had paid the deposit and signed the sales contract), but we couldn't get time off work, flights and hotels sorted, etc. within a few days to make the 19th August notary appointment.

Because I can't get across to Camposol until 5th September (to inspect the property, and if is as described and photographed by the estate agents over 6 months ago, to pay the balance due), the solicitor is claiming that we will be "out-of-contract" and the vendor isn't prepared to wait any longer, so we have to pay for a property that we have never seen, relying 100% on the estate agents viewing on the day of completion (which I have refused to accept).

Presumably if the vendors cancel the sale, we will get our 10% deposit back, but do we have to complete within 4 months by law (or forfeit our 10% deposit), even if the most of the delays were not caused by us ?

Buttercup1206 wrote on Fri Aug 19, 2022 1:16am:

They informed me by email only after the price had been negiogiated and agreed by myself and the seller. If I had known I would have negotiated a lower price to take account of the estate agent fees. Thankfully I have not paid a deposit on the property. 

The estate agent fees are also  5% of the sale price which seems extortionate in comparison to other fees I have researched....

Read more...

...

ann75 wrote on Mon Aug 22, 2022 11:34am:

Can you speak to the seller privately? It is possible that they are also paying the selling agent.  If so he shouldn't be paid twice.

 Like others have said the normal practice is that the seller who engaged the agent usually pays his fees. That's normally negotiated privately before the house goes up for sale. I would be deeply suspicious of this agent & the rate seems high as well. I think you need to find a solicito...

Read more...

...r who can advise you accurately.if only to put your mind at rest. 

 We bought in Murcia and did not have to pay agents fees. He needs to explain to you what his fee is for? Did you find the house yourself or did you engage him to find one for you? 

I wish you well and hope it comes to a satisfactory conclusion but get professional advice first before parting with any money. 

rma44 wrote on Mon Aug 22, 2022 9:00am:

Your comments raise several questions.

The fact that you haven't seen the property doesn't mean much if you agreed to buy it. That was your choice but it's something I would never do unless the property was so cheap I could afford to right it off, but that is history now.

Read more...

Did you place a deposit to hold the property until you viewed it, or did your deposit confirm the purchase?

The latter is the norm and you should have all this in writing stating exactly what you have agreed, in fact, you should have all agreements in writing because you might want to engage another solicitor to sort this out, which is the route I would take ASAP. Unless telephone calls are recorded, they are worthless.

I've never heard of a time limit. During Covid many sales were held up for many months (timescale determined by vendor and purchaser). I would suggest it's pressure from agent and /or solicitor to get their fees.

Was the solicitor recommended by the agent? Never a good thing!

Please name agent and solicitor, that would help anyone thinking of buying.

I think you have been very public spirited in publishing your experience and it would be most helpful if you would update the forum on your progress.

Good luck

Dave289 wrote on Sun Aug 21, 2022 8:09pm:

Is there a time limit between paying the 10% deposit and completion in Spain ?

We paid our 10% deposit (half to the estate agent, half to the solicitor) on 25th April and 12th May.

Read more...

It took 5 versions of the sales contract until there were no errors. It took the solicitor 7 weeks (9th May to 30th June) to send us the Power of Attorney forms that we needed to get notarised locally, which were wrong, so the corrected PoA was sent on 8th July.

The first date offered to us by the solicitors (on 11th August) with a Spanish Notary to complete was 19th August (delays because the owner had died, and the property was put on the market before probate had been completed, so the inheritees couldn't sell a property they didn't yet own, although we were only told about this 3 days AFTER we had paid the deposit and signed the sales contract), but we couldn't get time off work, flights and hotels sorted, etc. within a few days to make the 19th August notary appointment.

Because I can't get across to Camposol until 5th September (to inspect the property, and if is as described and photographed by the estate agents over 6 months ago, to pay the balance due), the solicitor is claiming that we will be "out-of-contract" and the vendor isn't prepared to wait any longer, so we have to pay for a property that we have never seen, relying 100% on the estate agents viewing on the day of completion (which I have refused to accept).

Presumably if the vendors cancel the sale, we will get our 10% deposit back, but do we have to complete within 4 months by law (or forfeit our 10% deposit), even if the most of the delays were not caused by us ?