suzy

Just wondering about this as my in-laws are considering moving to Spain and have been told by a friend they will have to pay commission on a property purchase.

It sounds very odd to me but as I'm not familiar with the way things are done in Spain hope someone can let me know if this is true.


Many thanks

jjh

Hi Suzy

Yes they do but it's included in the purchase price. What happens here is that the vendor tells the estage agent how much they want for the property and then the agent adds their commission. Vendors put the properties on with various agents and the commission can vary considerably from agent to agent. If you see a property in with one estate agent you may see it for more (or less) with another. Good luck to your in-laws.

pwwm

Dont forget you need to add on the tax and solicitor costs, if you allow 10% that will cover it.

pwwm

suzy

Aha, thanks alot for that info. I've made a note of that and will pass it on to in-laws. They are pensioners and I could just see them getting hold of the wrong end of the stick somewhere along the line.

cheers

Suzy xx

suzy

10% on top of purchase price?

thanks

jdr

And dont let them use a lawyer recomended by the agents

pwwm

Hi Suzy

Yes so they need to allow that into the budget. As jdr has said, dont used a lawyer recommended by the agent, use an independant one.

pwwm

keithwalters

We need to distinguish between an "independent" lawyer and an "in house" lawyer. People often say "independent" when they mean "in house".

An in house lawyer works directly with one developor or agent and should be avoided as they obviously will not have your interests at heart.

An independent lawyer works freely with any developer, agent or seller and has no ties or commitment to anyone. However, they will probably receive recommendations from various sources as this is the nature of their business. There is nothing wrong with that.

So just because an agent recommends lawyer X, doesn't mean that he isn't independent, however you should ask WHY lawyer X has been recommended over and above other lawyers, and whether the agent can recommend other lawyers as well if required.

I always respond when I read threads about "independent lawyers" as I feel a bit sorry for the firms where we have bought. There are only about 4 companies in total and none of them are in house. They are all independent, yet they all receive recommendations from developers, agents, etc. That doesn't stop them from being independent.

I don't know where your in laws are buying, but there are a lot of v dodgy in house solicitors on the Costa del Sol and it seems to be from that region of Spain that the majority of bad press eminates due to the scale of corruption in that area.

keithwalters

Unless they buy off plan of course, when it is the developer that pays the commision to the agent.

The "traditional" system in spain is as stated above, ie the seller names their price rather than having a valuation done and the agent puts their commission on top.

There are a few agencies though that are trying to break the mould and use the UK system which is obviously much fairer as they will value the property, and take their commission from the seller's proceeds, but I don't think it is easy trying change a system that has been in place for decades.

It is best to simply ask an agent how the property was valued (professionally or by the seller) and what commission they will be receiving (a percentage of the sale price, or a lump sum that they have added on top of what the buyer wants to receive).

suzy

Thanks everyone. I've started a file with all your advice in it

In-laws don't want off-plan and are looking at the Nerja area.

Beachcomber

Better still, don't use a lawyer at all.

Find a professional legal translator who is familiar with the property conveyancing procedure. You will get proper feedback and will be much more in control of the situation.