The purchase and sale of a property involves significant economic decisions, and one of the most important is the distribution of real estate fees. Although there is a common practice in the sector, regulations leave ample room for agreements between buyer and seller. Therefore, it is useful to understand how these costs are legally distributed and what factors influence their configuration. In Buckingham Property Advisors We explain everything to you.
First of all, it is essential to clarify that there is no law that automatically determines which of the parties must assume the real estate fees. Legislation allows for freedom of contract, which means that the distribution can be established according to what the parties agree upon, provided it is reflected in writing in the service order form or the intermediation contract. Transparency is key to avoiding misunderstandings.
The most common arrangement is for the seller to assume the payment. This is because they are usually the one requesting an intermediary service to market their property. In these cases, the agency is responsible for valuing the property, preparing its presentation, publishing advertisements, filtering viewings, negotiating offers, and managing legal procedures. However, this custom does not imply an obligation. If the buyer and seller wish to agree on a different type of distribution, they are completely free to do so.
In some transactions, the buyer hires additional services, such as personalized home searching or consulting to obtain financing. In those cases, the buyer pays specific fees related solely to their contracted service. This model is becoming more frequent in competitive markets where demand exceeds supply.
There may also be situations where both parties pay independent fees to the same agency. In these cases, the agency must guarantee impartiality in the negotiation and clearly differentiate the services it provides to each party.
Legally, the most important thing is that the distribution is documented. Any verbal agreement can lead to different interpretations. In addition, the contract must specify when the fees are earned: normally, upon signing the sale, although an advance payment can be agreed upon if so arranged.
Ultimately, the law does not dictate who pays, but it does require contractual clarity. Buyer and seller can arrange the distribution according to their needs, always within a transparent and balanced framework.