If you are planning to buy a property in Italy, it is necessary to understand when and which of the parties to the transaction pays commission to the real estate agency. For this purpose, let us turn to the primary source – the Italian Civil Code. Article 1755 of the Italian Civil Code states: “Il mediatore ha diritto alla provvigione da ciascuna delle parti, se l’affare e concluso per effetto del suo intervento. The misura della provvigione e la proporzione in cui questa deve gravare su ciascuna delle parti, in mancanza di patto, di tariffe professionali o di usi, sono determinate dal giudice secondo equita” (art. 1755 c.c.) Which means: “The realtor is entitled to receive a commission from each of the parties to the transaction, if the transaction has taken place as a result of his mediation. The amount of the commission and the share of each party, in the absence of prior agreement or professional fees, shall be determined by the court in accordance with the principle of equity.” Thus it is clear that in Italy, on the basis of the Italian Civil Code, in a real estate transaction, the commission to the agency is paid by both parties to the transaction (both the seller/landlord and the buyer/tenant). Quite often in the process of selecting a property when viewing properties, the buyer may meet representatives of several representatives of the agency. This fact should not surprise anyone. This also does not mean an increase in the cost of agency fees for either the property seller or the buyer. This issue is regulated by the same Italian Civil Code. Article 1758 of the Italian Civil Code on the commission of real estate agencies, with the participation in the transaction of two or more agents says:“Se l’affare e concluso per l’intervento di piu mediatori, ciascuno di essi ha diritto a una quota della provvigione” (art. 1758 c.c.).So, if the transaction is mediated by several agents, the commission must be divided among them in proportion to their share of the commission. The right of the agent to receive the commission arises at the time of the conclusion of the preliminary contract of sale, lease or arbitration agreement. Let us refer to the Italian Civil Code. Article 1326 of the Italian Civil Code:“Il contratto e concluso nel momento in cui chi ha fatto la proposta ha conoscenza dell’accettazione dell’altra parte” (art. 1326 c.c.) Translated: “The transaction is deemed to have been concluded from the moment when the proposer learns that it has been accepted by the other party.”The amount of the commission and the data of the agency involved in the property sale transaction must be indicated in the annex to the notarial deed of sale. The notary is also obliged to report this information to the tax office. If the figure specified in the contract of the agency fee is significantly lower than the average market, the agency may be fined, as well as the obligation to make the difference between the size of the current tariff and the declared in the contract amount. From all of the above we conclude that if you promise not to take a commission, you are not quite frank and “agent’s fee” is already included in the price of the object, from which, by the way, you will calculate taxes and notarial costs.

How to choose an Italian estate agency

It should be understood that agencies are divided into those who work badly and those who work honestly and well. You can find a property on the internet, but there is no guarantee that the seller has not put up his property through an agent. (It happens that there are adverts of “direct” sale. In this case, of course, you save on the commission of the agency, but there are several “BUT”. Let’s consider them. 1. The most important – it is the knowledge of the process of the transaction, all the subtleties of bureaucracy and peculiarities of the rules of different municipalities. Buying real estate in Italy – a complex process and the locals themselves prefer to sell property through an agency. If you do not know all the nuances, risk everything at once – and time, and money, and the quality of future housing. 2. And here comes and the third “BUT”. Often without agencies put their properties for sale by private owners at unreasonably high prices. Agencies are not interested in inflated prices and before signing a contract of commission, conduct an assessment of the object sold. 3. And the third. Often the owners of the property is not hidden from the agent. From the agent this defect can not hide, but from a non-professional buyer it is much easier to do.Buying from the developer, remember:They all sell property through the agency. The developer does not have the appropriate licence. And even if the agent works in the office of the developer and the cost of commission is not separated from the total price of the object, this fee is already included and will be paid to the agent after the transaction. In all circumstances, the agent’s commission is paid by the buyerinthis case.Advice to those planning to buy property in Italy or Europe:Do not skimp on the agent’s commission as you risk getting into trouble with the finances, documentation or condition of the property.

What is the commission percentage?

The standard percentage in Italy for locals is 3% of the price of the object specified in the contract plus VAT (where it is locally provided for by law). And remember “free cheese is only in a mousetrap”, and these mousetraps are not cheap, as practice has shown. Good day and good mood! Contact us for support and assistance in choosing and buying property, we will answer and show the best options for you.