Payment specifics when dealing with real estate agencies
In Spain, when buying or selling property through an agency, a common question arises: who is responsible for paying the commission, when should it be paid, and how much is it? According to established legal practice, an agency becomes entitled to a commission once the purchase agreement is signed. It does not matter whether the deal is completed or later cancelled, unless otherwise specified in the agreement between the agency and the client.
The intermediary’s role and the conditions for earning a commission
The key condition for earning a commission is the effectiveness of the intermediary’s work. If the agency indeed facilitated the transaction, its services are considered rendered. If no sale contract is signed, or the agency did not play a significant role in closing the deal, there is no entitlement to commission. Exceptions are possible if it is proven that the deal’s success was due to the intermediary’s actions and the delay was caused by the parties’ intent to avoid paying for the agency’s services.
Commission rates and how they are determined
The agency’s fee is set by the terms agreed with the client. Typically, commissions range from 3% to 5% of the property’s value, plus VAT (IVA) at 21%. The exact rate depends on the specifics of the deal, the range of services provided, and negotiations between the parties.
Who pays for agency services
In Spain, there are no strict regulations regarding who must pay the agency’s fees. Some companies work exclusively with sellers, others with buyers, and some agencies serve both parties simultaneously. The law allows for commissions to be collected from both sides, provided that both have agreed and received the appropriate services. The main requirement is the client’s voluntary consent and the actual provision of services.
Timing and methods of commission payment
The question of when the commission is paid is also decided individually. Most often, agencies receive payment after the signing of a preliminary agreement (deposit contract) or when the notarial deed of sale is executed. Sometimes, the amount is split into two parts: half is paid when the preliminary agreement is signed, and the remainder upon finalizing the transaction. In some instances, agencies may receive part of the commission at the reservation stage, but this is less common and depends on the contract terms.
What to do in case of disputes
If a client believes they are being charged an unjustified fee, there are several ways to protect their rights. In particular, they can file a complaint with consumer protection authorities or refuse to pay, stating the reasons in the agency’s official documents. If necessary, the matter can be taken to court to have the payment declared unjustified and to recover the funds. It is important to note that charging a commission at the booking stage is not always considered a violation—much depends on the terms of the contract and whether the deal is regarded as completed at this point.
