Real Estate Agency Commission: How It Is Negotiated

The amount of the commission is not set by any statutory act. It is agreed between the client and the agency in the brokerage contract and depends on the type of service, on whether the agency works for one or both parties, and on the scope of the work – viewings, advertising, document checks, assistance with a loan.

This means the commission is negotiable. Compare several offers, but look not only at the percentage but also at exactly what the service includes.

There are two main models on the market, and their names may differ between agencies:

• Non-exclusive contract – you can work with several agencies at the same time, and only the one that brought the buyer or tenant is owed a commission.
• Exclusive contract – only one agency offers the property for a set period. In return, the agency usually takes on more commitments for marketing and viewings. Read carefully what happens if you find a buyer yourself during this period.

The contract must state clearly at what moment the payment obligation arises: when a preliminary contract is signed, when the transaction is completed before a notary, or on some other event. It is important to know that ownership passes only with the notarial deed – contracts for the transfer of ownership of real estate must be executed by notarial deed (Art. 18 of the Obligations and Contracts Act).

Therefore, a clause under which the entire commission is paid before the final transaction carries a risk for the client if the transaction does not go ahead. Look for a clear mechanism for refunding or offsetting the amounts paid.

Real estate agencies are obliged entities under the Measures Against Money Laundering Act. The law expressly includes persons who professionally act as intermediaries in real estate transactions, including rentals where the monthly rent is EUR 10,000 or more (Art. 4, item 18 of the MAMLA). For this reason, the broker may ask for identity documents and information about the origin of funds. This is not a sign of distrust toward you, but part of the measures the law imposes on them.

For rentals, too, the commission is freely agreed. There are models where only the tenant pays, only the landlord pays, or both split the amount. It is often expressed as a part of the monthly rent, but this is market practice, not a rule – read exactly what the contract says and whether the amount is refunded if the lease is terminated in the first few weeks.

Arguments for a lower commission are usually the price of the property, a shorter contract term, or a smaller scope of services, for example when you have already prepared the documents yourself. Arguments for a higher one are exclusivity, professional photos, paid advertising and active work with buyers. Whatever you agree, put it in writing – verbal promises are hard to prove.

• The amount of the commission – a percentage or a fixed sum, with or without VAT.
• Who pays the commission – the buyer, the seller or both.
• The moment it becomes due and the conditions for a refund.
• The term of the contract and how it is terminated.
• The specific services: viewings, advertising, a check in the Property Register, assistance before a notary and a bank.
• What happens if the client finds a buyer or tenant on their own.

A good agency will show you how it determined the recommended price, will check the ownership documents and encumbrances before the viewings, and will explain all the costs surrounding the transaction – local tax, notary fee and registration fee. On Imotilist you can browse the profiles of agencies and brokers, their active listings and the areas in which they work.

Do not hesitate to ask for a sample contract in advance and read it calmly at home. Serious agencies have no problem explaining every clause.

• Measures Against Money Laundering Act (Art. 4, item 18)
• Obligations and Contracts Act (Art. 18)
• Registry Agency – Property Register

This article is not legal or tax advice. The information is general and current as of the date of publication; the terms of each agency are determined by the specific contract.