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RealEstate Agent's fee

CleoDe

Hello,

We are considering walking away from the property we put in an offer. Closing suppose to be in 2 weeks, end of December. We asked for a month extension for a closing. The seller agreed, but the real estate agent asked for his "commission" now.

Today, we got an email stating: "Consider that in Italy, mediation has to be paid after the preliminary, whereas we, by company choice, do it shortly before the deed. As far as the agency's mediation is concerned, I had proposed that you pay €18.000 to me directly as a VAT number and thus without adding VAT (22%), and the remainder to the agency, 9.000 + VAT. Please let me know if you want me to proceed with my invoice to be paid within the year ."

Our contract only has this part about the payments other than the deposit: "The juridical ownership and the possession of the asset will be transferred during the notarial deed. Expenses concerning the stipulation of the selling-purchasing notarial deed as well as the consequent ones will be paid by the undersigned proponents, as dictated by applicable law dispositions". So we understood that everything at closing if it happens. If we walk away, we know we loose a deposit, though...


Any advise? Do we have to loose the deposit AND to pay a commission to an agent, if we walk away?

Also Is it legal to ask/pay "privately" without tax/vat?


Thank you!

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Modicasa

The law says that commission is payable to the agent when 'the affair is completed' - and legally that means after the preliminary of sale.   Most agents want paying at this point, some are paid at atto - but the right to the money remains.     However, you had to be aware of this at some point, either in the documentation you signed at the agents when you saw the house, or when you signed the preliminary.


It does look like the agent is trying to be crafty.  Is the agent cited in the preliminary of sale with the right to his commission?  Its not quite clear how he's trying to get paid - he wants  some to be paid to him as an individual and the rest to the agency?  Thats illegal.  He's also a fool for putting it in writing.

If he's not in the preliminary as the agent then the law says he doesnt exist, but this would depend on if you have signed anything at the agency previously.


Also bear in mind, that its not just a question of losing the deposit.   If your deposit was a caparra confermatoria then the sellers can take you to court and force you to buy the property.   The preliminary  is the sale to all effects and purposes.


Basically the law is on the side of the agent, unless he doesnt appear in the compromesso and is asking to paid under the table, and you will need to notify the Guardia di Finanza.   Make sure you have everything in writing. 

CleoDe

@Modicasa

Thank you, Modicasa.

We didn't sign any documents in the agency other than the Purchasing Proposal/Proposta di Acquits. It says inside of it that "The present contract is conditioned to the check of the documentation pertaining the real estate units in object by both parties, for duration of two months. In case of positive outcome, the present contract will be considered as perfected and the parties will move forward with the notoried deed as agreed", so we thought the Purchasing Proposal becomes at some point a Preliminary contract? Or is it the same thing to begin with?

There is no mention of the agency commission other than the phrase: "The juridical ownership and the possession of the asset will be transferred during the notarial deed. Expenses concerning the stipulation of the selling-purchasing notarial deed and the consequent ones will be paid by the undersigned proponents, as dictated by applicable law dispositions."

We still need to wet-sign a geometra report from September 28th, which we have an issue with, so we haven't done it yet. There are some issues, including a big one, which is expensive and time-consuming to fix.


So, can I walk away from the house? Will we lose a deposit? Can they "force" us to buy a property?

joesy60

My understanding is that if you walk away you will loose the deposit.  Did you not hire a lawyer to over see everything??? Buying a property oversea should never be done without a law firm overseeing the entire project.  These firms do it all.  They send packers, mover, inspection of property  inside and out, They get your tax code, notary and anything else related to your purchase and move.  Its a turn key operation and you have no headached

Modicasa

It is a common misconception that you can walk away from a purchase and lose the deposit.   You can do this, but only by agreement with both parties.   A caparra confermatoria means that the seller (in this case) can take you to court and force you to buy.  However, it is very unlikely as trying to get a foreign buyer through the Italian courts would take years and years. 

In your case, was the documentation checked and validated within the two month period?   It is a badly worded proposta which becomes a compromesso if, after 2 months, the house is commercially sellable.  It sounds as if that is not the case at the moment, if the layout does not reflect the catastal plans/comune documents.

If the house is not as seen and the plans do not reflect the actual state of the property then the seller has the obligation to sort that out or return double your deposit - as the house they are asking you to buy, is obviously not the one that you saw.  The agent here also has legal responsibiltiy for what they say.