Commission or agency fees - This varies greatly from company to company. There is no obligatory commission rate simply a guideline. The Estate Agent is obliged to have his commission structure displayed in a prominent position in the Estate Agency. The rate can vary from 4% to 10% and sometimes more with certain companies.
If purchasing through an Estate Agency it is worth pointing out that whoever (seller or purchaser) pays the commission the price of the property remains the same. The price is made up of the net sale price plus agency fees to give the total price. However if the seller is made responsible for the fees in the compromis de vente, the notaires fees transfer costs are calculated on the net sale price and if the seller is made responsibel for the fees in the compromis de vente then the notaires fees and transfer costs are calculated on the total sale price.
If the seller is to pay the commission then it because the mandat de vente is signed with an all inclusive price and the commission will be deducted from the sale proceeds.
In the case of the purchaser paying the commission then it is obligatory that he signs a Mandat de Recherche with the Estate Agency. This will reduce slightly legal costs in that you will pay legal costs on the net price of the house excluding agent's commission. It will not change anything relating to the actual offer and agreed purchase price of the house.
TIP: Ask your agent if you can sign a "mandat de recherche" which will make you eligible as a purchaser to pay the agency fees, thus ensuring that you benefit from the reduced notaires fees and transfer costs, and therefore reducing the overall cost of the sale.
The advertised price of any property should always be advertised as an inclusive price which is why you often see for example 100 000 euros FAI (frais d’agence inclus/agency fees included). This means that there is no commission to pay over and above the agreed offer price that you make as a purchaser.
Notary’s commission : If you are purchasing through a Notary the commission is due by the purchaser. You should count on approximately 5%.
Read more on purchase costs when buying property in France.
Read more on Estate Agents in France.