Who pays the broker fees? Buyer or Seller?

Agency fees are included in the advertised listing price for a property. Listing fees are ordinarily about 5%. The purchase can be structured so that the buyer pays the seller and the seller pays the agency out of his total, or the buyer paying the seller his net price and the agency fee separately. This second option saves the buyer the 7% notaire fees (stamp duties) payable on the purchase.

The advantage to most buyers of this second option is that they do not then pay notaire fees on the agency commission amount; a significant savings. But, for non- resident buyers who need the maximum possible financing, banks often will not finance the agency fee if it is paid in this way.

Since there is no loss or gain either way to the seller, the buyer should be aware of this issue ask for the structure that best suits his needs.

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