When planning to purchase a property in Italy, it is essential to understand realtor commission fees and payment schedules. Working with a licensed realtor is usually the first step in the property search, and they have the responsibility to facilitate the transaction and provide information to both the buyer and seller. In this blog post, I will explore realtors’ commission rates, payment schedules, and other important aspects of real estate transactions in Italy.
Realtor Commission Fees And Terms of Payment
In Italy, a realtor’s commission payment (provvigione) is shared between the seller and the buyer. According to Italian Civil Code, commission is payable once the realtor has become the effective cause of the sale.
The typical range for commission payments in Italy is between 3 to 8 percent of the property sale price, with both the seller and buyer usually responsible for paying their respective portions. However, some brokerages may work on a fixed fee commission based on a percentage of the total sale price. It is crucial to know if a realtor’s fees are negotiable before engaging their services.
Additionally, it is essential to check the terms and conditions of the realtor’s contract and determine when the commission payment is due before engaging their services. Often, there is a stipulation in brokerage contracts that triggers the realtor’s right to receive commission fees, even if the final deed of sale is never completed.
If the buyer and/or seller pay commission before the final deed of sale and the sale ultimately falls through, the party who paid the commission may need to initiate legal action to recover the funds. This can result in significant legal fees and a lengthy legal process. Additionally, if the realtor has already spent time and resources on the sale, they may be less likely to return the commission.
Clause: Subject to the Successful Completion of Sale
By including a clause in the brokerage contract and the preliminary contract of sale that specifies the payment of realtor commission fees is contingent upon the successful completion of the sale, buyers and sellers can avoid potential pitfalls and ensure a smoother transaction process. This clause ensures that the realtor cannot claim any compensation in the event that the contract signed by the parties does not result in the completion of the final deed of sale for the property. Therefore, the inclusion of this clause protects the buyer from paying the commission if the transaction fails to materialize.
Additional Charges
Before signing any paperwork, it is also crucial to ascertain if the realtor will charge extra for services such as additional viewings or sending a surveyor to look at the property. Some agents may include these additional services in their commission, while others may charge an extra fee for these services.
Conclusion
Understanding realtor commission fees and payment schedules in Italy is crucial for anyone looking to buy or sell property. Commission fees can vary between 3 to 8 percent on both sides of the property sale price, and it is important to clarify the commission payment terms before engaging the services of a real estate agent.
Including a clause in the preliminary contract that specifies the payment of commission is contingent upon the successful completion of the sale can help buyers and sellers avoid potential pitfalls.
Have you had experience paying Italian realtor commission fees too soon and having to get a refund when the sale didn’t conclude? I would appreciate hearing about your personal experience regarding Italian realtor commission fees. Have you ever found yourself in a situation where you had paid the commission fee too soon, and then the sale or purchase fell through? If so, how did you handle the situation? Sharing your experience in the comments section below can be helpful to others who may find themselves in similar circ*mstances. So, please feel free to share your experience and insights.
