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Buy a House in Italy - Step 3
By admin | June 9, 2008
Estate agency fees, payable by both the buyer and seller, are also payable with the signing of the contratto preliminare. It sometimes comes as surprise to buyers who come from countries with different customs that they have to pay the agency. Remember you are buying a house in Italy, not anywhere else, so why should the rules from home apply in a different country with a different system? If you want to look it up it is article 1755 of the Codice Civile.
In Italian Law the agency is entitled to its fee when the two parties are aware that a contract exists between them. In effect this is when both parties have signed a binding agreement. Strictly speaking this is when a proposta di acquisto irrevocabile has been signed. Where a proposta has been signed, there is no requirement for the agency to wait until the signing of the contratto preliminare before asking for their fees but in practice most agents will wait until the preliminary contract before invoicing you.
It is not the case that agency fees are due only after the sale has completed. And don’t think you can avoid paying the agent because you consider his service in some way inadequate. The law is clear that the agent needs to have caused the transaction to take place in order to be entitled to his fee; sufficient is to have introduced you to the property, vendor or agent handling the sale of the property. As we will see later, the notary (Notaio) needs to see the agency’s invoice and how it has been paid before he can complete the transaction (compravendita).
Where the estate agency is also registering the contract it is, in addition to the fees, entitled to be paid the sum due to the authorities (which the agency will pay over on your behalf) plus their reasonable expenses. This payment is to be made by the purchaser and the time scale needs to be noted. In the event that the contract is not fulfilled it is the defaulting party who is responsible for all costs.
Agency fees may vary but the average figure is 3% from each side. That is, the buyer pays 3% and the vendor pays 3%. Some agencies, especially foreign agencies, don’t wish to appear to be making money from both sides and ask the vendor to increase the price of the property to include a higher fee - 6% or even more - so that they can avoid asking the buyer directly for fees. Another one to be wary of is the agency who offers to sell you a property inclusive of all commissions, notaio fees, geometra fees, taxes and registration costs. In such a case how can you, the buyer, possibly know the real cost of the property?
That the buyer pays the agent is a fact and is nothing to be ashamed of or to be shy about. There is nothing better for you than a transparent deal.
Topics: Essential reading, The buying process |