Real estate agency commission: how much, when, and what it includes

The real estate agency commission is owed by both parties — seller and buyer — each for their own share. This is established by Article 1755 of the Civil Code: the broker is entitled to compensation from each party when the deal is concluded as a result of their intervention. It is not just an industry practice: it is the law.

Percentages are not fixed by law. They have been deregulated and are agreed upon in the engagement before the agency starts working. Anyone who tells you that “the commission is a fixed percentage for everyone” is describing a local practice, not a mandatory rule.

When the commission is due

The timing is precise and often overlooked: the commission accrues when the deal is concluded, meaning when the parties reach a binding agreement — typically with the acceptance of the purchase offer. Not at the closing.

This means that if, after acceptance, the sale falls through for a reason not attributable to the agency, the compensation remains in principle due. This is the point that generates the most disputes, and also the point that can be negotiated: many engagements provide that payment occurs at the preliminary contract or at closing, and this is a condition that must be written into the agreement.

Ask for it to be put in writing. It is not distrust: it is the same care applied when reading any other contract.

The surprising case: the agency without an engagement

The commission can also be due to an agency with which you have signed nothing. If a broker puts you in contact with a buyer and the sale is concluded thanks to that introduction, the right to compensation exists by virtue of Article 1755, regardless of the existence of a written engagement.

This is why, if you sell on your own and receive calls from agencies, it is advisable to clarify in writing from the first contact what the relationships are — before letting anyone enter your home.

What you should receive in return

The commission does not pay for “the listing.” If it just pays for that, it is expensive at any price. The items that should be included are these, and it is worth requesting them explicitly before signing:

• The valuation, done with an inspection and supported by area data, not a figure thrown out randomly.
• The preliminary documentary check: cadastral compliance, building permits, origin, condominium status. This is the part that saves sales, and it is done before publishing, not when the notary raises the issue.
• The promotion: photographs, floor plans, publication on portals, network of contacts.
• Filtering contacts. How many curiosity seekers do not reach you is an invisible value until you try to sell alone.
• Visit management, including the security of not letting strangers into the house without someone having identified them.
• Negotiation management and proper drafting of offers and preliminary contracts, with well-written suspensive conditions.
• Accompaniment up to the closing, coordinating with the notary and bank.

The 19% tax deduction: who has it and who doesn’t

There is an IRPEF deduction on real estate brokerage expenses, provided for by Article 15, paragraph 1, letter b-bis) of the TUIR. It is 19% on a maximum expense of 1,000 euros, so a tax saving of up to 190 euros.

Be careful as to who is entitled because there is a lot of confusion about this: the deduction is for the buyer, not the seller, and only if the property is intended as the main residence. Sellers have no deduction.

An invoice made out to the person claiming the deduction and payment by traceable means are required. There is also an obligation that concerns both parties: the deed must contain a substitute declaration with payment methods, broker data, and commission amount (Article 35, paragraph 22, of Decree Law 223/2006).

What can be negotiated

Almost everything, provided it is done before signing the engagement.

• The percentage, obviously.
• The duration of the engagement and especially renewal: many engagements renew tacitly. Check it.
• Exclusivity: yes or no, and for how long.
• The timing of payment: on accepted offer, preliminary contract, or closing.
• What happens if you sell to a buyer you found during the exclusivity period.
• Additional costs: check whether photographs, floor plans, or premium advertising are included or paid separately.

Exclusivity: yes or no

It is the question everyone asks. There is no absolutely right answer, but there is logic.

Exclusivity makes sense if the agency truly invests — photoshoots, paid promotion, dedicated time — because without guarantee of return no one invests. It also has a side effect that sellers underestimate: a property published by the same agency on all portals appears as a single listing. The same property promoted by four agencies with four different prices and descriptions signals to the market that the seller is in difficulty, and it is a poor starting point for negotiation.

Exclusivity does not make sense if it is very long, renews automatically, and is not accompanied by concrete commitments. If you sign it, ask that the engagement specifies what the agency commits to do — and within which timeframes.

In summary

The commission is owed by both parties by law, the percentage is freely negotiable, and it accrues at the conclusion of the deal — not at closing unless otherwise agreed in writing. The 19% deduction up to 190 euros is granted only to the buyer who designates the property as a main residence. Everything else — duration, exclusivity, renewal, timing of payment, included services — is negotiated before signing.

If you want to know exactly what our engagement includes and under which conditions we work, we will tell you before any commitment. Write to us.