Selling and the Estate Agent Contract

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This topic contains 5 replies, has 4 voices, and was last updated by Profile photo of Fuengi (Andrew) Fuengi (Andrew) 8 years, 4 months ago.

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  • #54171
    Profile photo of Anonymous
    Anonymous
    Participant

    My (Spanish) wife seems to think that selling a Spanish property is just a case of asking a Spanish estate agent to market the property and telling them what price you want. No contract, no signature, nada.

    This seems to be backed up by members of her family saying the same and doing just that. For example one property her sister is selling is with 4 or 5 agents and no contract has been signed.

    It’s also my understanding that in general agents add a figure onto the price as their commission, or advertise it at what they like, as long as your requested price will be met once commission has been deducted.

    So what is the real situation with Spanish Agents?

  • #85202
    Profile photo of Inez
    Inez
    Participant

    Hi jp1 – the answer is it varies. Most english estate agents and larger agencies will have a contract confirming the terms and conditions.

    Some do work on oral agreements and if you have a net price you want, the agent will add his commission on top – this was the traditional way of selling via agents in Spain.

    Some will tell you their percentage fee which is deducted from the end selling price, and in this cash you may wish to increase the price to include this, so you need to decide which way you wish to go.

    Not everyone signs contracts, but its handy to have something in writing for obvious reasons.

    Once an offer is made, you do not have to accept, but once the terms are agreed and a contract is signed, then you are bound by this with fiscal penalties for non completion.

    Hope that helps

  • #85222
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    its also worth seeing whether you want to follow the legal route or not.

    An agent cannot market you property without written consent from the owner. The agency also requires a plethora of paperwork confirming the status of the property, if there is a mortgage, etc…

  • #85230
    Profile photo of katy
    katy
    Spectator

    I would not allow an Agent to sell my house without a written contract. It was the Spanish way of doing things. However, in the past, the Agent (Correador) would be probably known to everyone in the area. It hasn’t worked well when the Brits get involved.

    A few years ago a friend was approached by a British Agent who had heard that he was selling his property. The Agent said he had a client, who he brought along to view the property. The client bought and passed on the 10% deposit to this Agent (yes, I know 🙄 )…who promptly did a runner. Sale lost and my friend had visits from the Police!

  • #85231
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks for the answers.

    Having bought my property the Spansh way. I don’t want to sell it that way!!

    It seems that without a legal contract the whole situation is open to abuse. The agent asking for more comission once sold, the vendor not paying commission after the sale.

    So at what point is a contract signed then (if any). Once the agent has introduced a buyer and a deposit lodged (with the vendor). It seems if this is the case the agent could increase his commission or the vendor say he is removing the propery from the market and then do a deal privately.

    So exactly how does the agent ensure he receives his commission when no contract is signed prior to marking the property.

  • #85239
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @jp1 wrote:

    Thanks for the answers.

    Having bought my property the Spansh way. I don’t want to sell it that way!!

    It seems that without a legal contract the whole situation is open to abuse. The agent asking for more comission once sold, the vendor not paying commission after the sale.

    So at what point is a contract signed then (if any). Once the agent has introduced a buyer and a deposit lodged (with the vendor). It seems if this is the case the agent could increase his commission or the vendor say he is removing the propery from the market and then do a deal privately.

    So exactly how does the agent ensure he receives his commission when no contract is signed prior to marking the property.

    going to answer by paragraphs
    don’t sell hte spanish way. nothing wrong with letting people you know that you are selling. if they bring a client, great but don’t rly on this.

    exactly.

    well a sales agreement would be signed once thye have valued your property and agree to sell through them. This contract should specify al costs/commission, terms&conditions, etc..

    when a offer is made and you accept it, the agency should also confirm they’re commission. You want to confirm it, so they don’t try to increase it, and they’ll want you to confirm that they’ll get it!
    Also the contract hsould specify whether the property is exclusive with the agency or not.
    If an agent brings a client to you home, the client should be registered with you. Thus protecting they’re interest. If they don’t register the client its they fault. remember if its not in writing it does not count.

    last paragraph
    honour amongst thieves.

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