Agency fees apply to property transactions carried out through an agency. But who pays the fees – the buyer or the seller? And how much are they? Read on to find out…
When selling or buying a property, it is often easier to go through an estate agency. Estate agents help you find the property of your dreams, taking your requirements into account. Their knowledge of the local property market and their network allow them to propose properties suited to your budget and the market.
The estate agent will charge agency fees, also known as commission fees, when the transaction is completed.
How much are agency fees?
The estate agency has an exclusive mandate or a simple mandate to find a buyer. The estate agents use all the tools at their disposal and their network to complete the transaction within a reasonable time at a satisfactory price.
Agency fees represent the agency’s remuneration. On average, they amount to between 3% and 8% of the sale price. These fees are not set by law, they are set freely by the estate agency according to its business policy. Agency fees cover the various services provided, including estimating the value of the property, advertising the property, visits, negotiating the sale, administrative tasks.
Who pays the fees?
In theory, agency fees are paid by the seller. But in practice, things are often very different. While the seller is responsible for paying agency fees, they are often paid by the buyer. Property descriptions often show a price including agency fees or they stipulate that agency fees are payable by the buyer.
When buying a property, as well as agency fees, acquisition fees, also known as notary fees, are also payable. These must be paid by the buyer.
They include several types of fees:
- The land registration tax (TPF): a tax paid to the département and the municipality where the property is located and to central government. The amount is a percentage of the sale price and varies by département and according to the age of the property.
- Fees and expenses: administrative costs incurred by the notary in preparing the purchase.
- Emoluments: the notary’s remuneration. The amount of these fees are set by the French government.
The fees payable when purchasing a property vary according to several factors. Overall, they amount to around 10% of the selling price. This is a guideline to give you an idea of the fees incurred when buying a property in France.