# sale agreed on our house!



## rotaels (Mar 4, 2011)

We have agreed a price on the sale of our house here in Spain... 2 questions is it acceptable to ask the agent to take 5% instead of 6% commission. Secondly who holds the deposit until the completion date if I remember correctly in the UK its the solicitor but I have been told that in Spain it goes into sellers account. Thank!


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## extranjero (Nov 16, 2012)

If you don't ask, you don't get!
Can't imagine many would lower their commission
The one I'm with charges 4%, and that's a hefty chunk, in my opinion
Some say they do more for the seller than their counterparts in UK
Question is- What?


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## snikpoh (Nov 19, 2007)

rotaels said:


> We have agreed a price on the sale of our house here in Spain... 2 questions is it acceptable to ask the agent to take 5% instead of 6% commission. Secondly who holds the deposit until the completion date if I remember correctly in the UK its the solicitor but I have been told that in Spain it goes into sellers account. Thank!


Hmmm I would say that if you have agreed a price, then it's too late. Why should the agent reduce it now with a buyer lined up.


Be careful with the deposit. It is usual in Spain for the purchaser to hand over a small fee to get the property off the market before a deposit is formally paid. This is usually held by the agent (not sure why though). I would say that you should get hold of this!

The deposit SHOULD be held by an official - IMHO NOT the agent! I have heard too often that the sales falls through and the agent pockets the deposit despite the law being on your side.

Well done in selling though.


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## extranjero (Nov 16, 2012)

With my estate agent, if the sale falls through, they get 4 % , the same as they would have got had it gone through.
I read that an escrow account should be used, so no one can get their hands on it until it has gone through, but no one I know has done this


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## snikpoh (Nov 19, 2007)

extranjero said:


> With my estate agent, if the sale falls through, they get 4 % , the same as they would have got had it gone through.
> I read that an escrow account should be used, so no one can get their hands on it until it has gone through, but no one I know has done this


Crikey - and you signed that agreement?

All the agent needs to do is find someone to 'agree' to buy your house, then pull out, and he pockets 4%


WOW - how dangerous!


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## extranjero (Nov 16, 2012)

This is one of the best known estate agents in Spain, and this is normal practice!


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## tonymar (Jan 29, 2015)

6 % seems a lot for now , I have my house on with several agents and always agree 3% is fare 

But if you have already agreed 6% you should honour it 

But thats just my opinion !

Tony Agost Spain


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## Isobella (Oct 16, 2014)

When we have bought have always insisted that our Lawyer or the buyers holds the deposit. Although the last one we sold which was quite a few years ago I was stunned when we were handed the 10%.

One of our neighbours bought a house from an old Spanish woman. She pocketed the 10% and refused to complete. All that happened was that an embargo was put on the house. The old woman wasn't bothered as she had decided she didn't want to leave.


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## alborino (Dec 13, 2014)

Are these percentages plus VAT?

In the UK I'm paying 1% plus VAT and seriously grumbling at that. But in the UK it is a sellers market of course. I think that means less work for the agent and cetainly faster to get their cut.


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## Isobella (Oct 16, 2014)

Yes it's plus IVA. Around here (CDS)the normal commission rate is 5%.


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## rotaels (Mar 4, 2011)

True if I don't ask I don't get!! no harm in trying its so high here in spain. Still not sure about what happens with deposit... thanks for your help anyways guys


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## snikpoh (Nov 19, 2007)

extranjero said:


> This is one of the best known estate agents in Spain, and this is normal practice!


I've just spoken to a good friend who's an Estate Agent and he says that it is NOT common practice.


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## StevejR1 (May 21, 2013)

As a buyer, I have been told that the deposit will be held by our abogados until completion.....and that seems fair.


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## Pesky Wesky (May 10, 2009)

extranjero said:


> This is one of the best known estate agents in Spain, and this is normal practice!


I don't think it's normal practice. Normal for them maybe!


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## Tracey W (Oct 24, 2014)

An initial holding deposit of about 3000 euros is usually required to take the property off the market while the checks are made by a solicitor. This is normally held either by the agent in a designated client holding account, or by the purchaser's solicitor until they are satisfied that everything is in order. It is not usually passed to the seller until the solicitor is happy, for obvious reasons as if the seller spends the money it can be very difficult to get it back. With regards to the agent's commission - you have agreed to pay that amount and it is totally dishonest and unfair of you to expect him to take any less. I presume at some point you have worked and have agreed a wage with your boss? How would you felt if he decided to try it on and pay you less? IMO good agents work much harder in Spain than UK agents. In the UK the agents come and list the house and get clients but rarely accompany viewings or sort out any problems that come to light.


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## StevejR1 (May 21, 2013)

We have not been asked to offer any holding deposit on the property we have put an offer on....the property hasn't been changed to 'under offer' or 'sold' on the web page though, which has concerned/annoyed us a bit.

I was led to believe that there was a period of 2-4 weeks before a deposit is made. The 2-4 weeks to clarify that everything is in order, then the deposit paid in good faith until the sale is completed. As far as I'm aware (...it should become clearer to us next week in Spain) if after the deposit is paid, if a further problem arises to prevent the sale, then the deposit is totally refundable. If you pull out through circumstances it isn't.

That's my take on it so far.


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## VFR (Dec 23, 2009)

Tracey W said:


> An initial holding deposit of about 3000 euros is usually required to take the property off the market while the checks are made by a solicitor. This is normally held either by the agent in a designated client holding account, or by the purchaser's solicitor until they are satisfied that everything is in order. It is not usually passed to the seller until the solicitor is happy, for obvious reasons as if the seller spends the money it can be very difficult to get it back. With regards to the agent's commission - you have agreed to pay that amount and it is totally dishonest and unfair of you to expect him to take any less. I presume at some point you have worked and have agreed a wage with your boss? How would you felt if he decided to try it on and pay you less? IMO good agents work much harder in Spain than UK agents. In the UK the agents come and list the house and get clients but rarely accompany viewings or sort out any problems that come to light.


That may well be the case Tracy, but 6% ! and that just the seller.


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## Isobella (Oct 16, 2014)

I wouldn't worry about the websites. One place our friend bought was still showing for sale months after they had moved in.  I hear it is very difficult to get a deposit back from Agents but I suppose there are good and bad.

I thought All viewings in the UK were accompanied. Certainly have been in all my experience.


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## extranjero (Nov 16, 2012)

And mine. I just don't buy that agents do much more in Spain to justify their great slice of the proceeds


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## StevejR1 (May 21, 2013)

Isobella said:


> I wouldn't worry about the websites. One place our friend bought was still showing for sale months after they had moved in.  I hear it is very difficult to get a deposit back from Agents but I suppose there are good and bad.
> 
> I thought All viewings in the UK were accompanied. Certainly have been in all my experience.


We have noticed that ourselves on the few we know of that have sold...but when it's yours it matters!! 

We had all our viewings accompanied in the UK...got them to do some work!  but in fairness to our estate agent they were very good, motivated, without being ruthless, and always straight and honest


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## alborino (Dec 13, 2014)

extranjero said:


> And mine. I just don't buy that agents do much more in Spain to justify their great slice of the proceeds


I'm selling in the UK for 1% plus VAT. After just 2 weeks they did professional floorplans and photos. They advertised in their shop windows. They added it to right move. They called all likely candidates. They at my request did not erect a for sale sign. They gave documented feed back on both reaction to calling and rightmove activity. They arranged an open day and tomorrow have 4 viewings back to back so hopefully each group realises there is demand. A fifth viewer booked next week if it hasn't gone. I already have been informed who the people are and their circumstances in regard to chains, time known to agent, age. All viewings guided in our absense.

When buying in Spain 10 years ago and our efforts now I've not seen any shop/office based agent do that. Most seem incredible disinterested. To buy our flat in the end we used a friend of a friend who operated out of his flat. He drove us around various properties and when we chose one it went smoothly. But perhaps with him we were lucky. He will for sure get to sell it as he is now a regular acquaintance.

Just observations and my personal experience.


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## StevejR1 (May 21, 2013)

extranjero said:


> And mine. I just don't buy that agents do much more in Spain to justify their great slice of the proceeds


Personally I don't either really. In the uk they get a very handsome reward for their efforts...too much to be honest!

If the 6% charge is correct, then that is four times what we have been charged in the uk....and that's a lot of money!!! The only thing is that the volume of sales is nowhere near close to the uk, and the Spanish estate agents do a lot of driving about and viewings that lead nowhere.


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## StevejR1 (May 21, 2013)

alborino said:


> I'm selling in the UK for 1% plus VAT. After just 2 weeks they did professional floorplans and photos. They advertised in their shop windows. They added it to right move. They called all likely candidates. They at my request did not erect a for sale sign. They gave documented feed back on both reaction to calling and rightmove activity. They arranged an open day and tomorrow have 4 viewings back to back so hopefully each group realises there is demand. A fifth viewer booked next week if it hasn't gone. I already have been informed who the people are and their circumstances in regard to chains, time known to agent, age. All viewings guided in our absense.
> 
> When buying in Spain 10 years ago and our efforts now I've not seen any shop/office based agent do that. Most seem incredible disinterested. To buy our flat in the end we used a friend of a friend who operated out of his flat. He drove us around various properties and when we chose one it went smoothly. But perhaps with him we were lucky. He will for sure get to sell it as he is now a regular acquaintance.
> 
> Just observations and my personal experience.


Our experience of our UK agent is equally positive.

In Spain we have dealt with at least eight different estate agents. We have bought through one we regard as one of the top ones.

We have experienced a few who were disinterested, one that verged on bullying, and a couple that were very organised, and a couple that were good but couldn't offer us what we wanted.....

......what has always totally confused us, is how the majority of the agents, and I mean almost all, completely failed to follow up our interest, or kept in touch!

We are/were genuine buyers, and I can understand that they get a lot of their time wasted, but we knew we would buy when we found the right place, we knew we were genuine, but they could either not see it, or didn't care!....and estate agents never contacted us with other suggested properties, or for an update on how things were going....two agents NEVER even contacted us again after we had some viewings with them. That we found completely confusing in a market that needs a bit of enthusiasm to get it going again.


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## Isobella (Oct 16, 2014)

Bear in mind that most Agents in Spain reinvented themselves and know almost nothing of the property market. You will probably know more by reading this forum I know one who pushes herself as an experts sales agent worked in Boots before moving to Spain, another was a double glazing salesman.


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## Pesky Wesky (May 10, 2009)

Isobella said:


> Bear in mind that most Agents in Spain reinvented themselves and know almost nothing of the property market. You will probably know more by reading this forum I know one who pushes herself as an experts sales agent worked in Boots before moving to Spain, another was a double glazing salesman.


Most agents in Spain, or most British estate agents serving a British market in the south of Spain?

A very large number of estate agents of all nationalities had to reinvent themselves as shop assistants and receptionists due to the crisis and house sales falling by @35/40% from 2008 to 2014


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## tonymar (Jan 29, 2015)

StevejR1 said:


> Our experience of our UK agent is equally positive.
> 
> In Spain we have dealt with at least eight different estate agents. We have bought through one we regard as one of the top ones.
> 
> ...



You will soon find when you move here that customer service is nothing like it is in the uk !!

It seems crazy when things are so bad here not to follow up a lead !

Tony Agost Spain


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## baldilocks (Mar 7, 2010)

extranjero said:


> This is one of the best known estate agents in Spain, and this is normal practice!


Normal practice? No it isn't.

Beware of estate agents, especially if they are Brits or other non-Spanish. What is not uncommon in Spain is both buyer and seller pay something to the agent rather than just the seller as in the UK


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## extranjero (Nov 16, 2012)

baldilocks said:


> Normal practice? No it isn't.
> 
> Beware of estate agents, especially if they are Brits or other non-Spanish. What is not uncommon in Spain is both buyer and seller pay something to the agent rather than just the seller as in the UK


They've started this practice of the buyer paying the estate agent a " complimentary fee " in the UK now, although I've only heard of one well known estate agent actually doing this( at the moment)
The difference in the UK is that the seller pays much lower commission to the agent.
So, someone who has been clobbered with all the seller's fees in Spain and goes back to the UK and buys a house via this agent will be clobbered there as well.
That, plus less profit due to the exchange rate, is the depressing part!


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## Madliz (Feb 4, 2011)

I had a 'buyer' in October. He paid a €5k deposit to me on signing an initial contract. A month later we were due to sign a more comprehensive contract with, at his suggestion, a 25% deposit, but he pulled out a week beforehand, citing losses on the stock market. My agent received nothing. I pocketed the deposit. Of course agents and lawyers will try to sell the uninitiated that it's the norm for them to have the deposit! The agent involved tried to tell me that their commission was payable when we signed the contract and I declined, thankfully! If so, what incentive to they have to see the sale through? I, as seller, pay their commission. In my book they work for ME.
Every so often I have agents contact me offering to sell my house for me. I tell them I'm not interested as I don't want to pay commission. I have a couple with the house on their books only because they've agreed to MY terms, no more than 2% commission. 
I find agents here just stick ads on free web portals, and I can do that myself. They do not warrant any more than 2% in my opinion (with IVA on that to pay too). I had an agent even poach my own photos AND text from one of my own adverts. He would then expect payment if a buyer was attracted by my words and pictures. They're a cheeky bunch!


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## ABERAFON (Aug 15, 2014)

Tracey W said:


> An initial holding deposit of about 3000 euros is usually required to take the property off the market while the checks are made by a solicitor. This is normally held either by the agent in a designated client holding account, or by the purchaser's solicitor until they are satisfied that everything is in order. It is not usually passed to the seller until the solicitor is happy, for obvious reasons as if the seller spends the money it can be very difficult to get it back. With regards to the agent's commission - you have agreed to pay that amount and it is totally dishonest and unfair of you to expect him to take any less. I presume at some point you have worked and have agreed a wage with your boss? How would you felt if he decided to try it on and pay you less? IMO good agents work much harder in Spain than UK agents. In the UK the agents come and list the house and get clients but rarely accompany viewings or sort out any problems that come to light.


Hi Tracey,

I have bought and sold 16 houses in the Uk over 40 years, and on every occasion the agent has been requested to do the viewings and they have done so. Most estate agents will also help sort out any problems, I think they work quite hard for their 1%. solicitors appear to work harder in the UK with house sales as well. I sold our last villa in Spain in 2010 and paid 9k euros to the agent which was 3%. It sold within 24 hours of being put up for sale so the agent did not have to work so hard but they did see the sale through to completion so I had no complaints. Can't see anyone getting a reduction on the 6% commission though in this case as once the house is sold would you want to risk upsetting the agent before completion in this market.


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