The commission rate for real estate companies is determined by regulations concerning real estate transactions. These regulations define the real estate sales commission as "% 2 + VAT (% 20) of the sale price" and it is collected separately from the buyer and seller. On the other hand, if there is a written agreement, the total real estate commission of % 4 can be paid only by the buyer or the seller. In the case of real estate rentals, the maximum commission amount can be "one month's rent + VAT (% 20)". Furthermore, although the rent is normally paid by the tenant, unless it is explicitly stated in the contract that the tenant pays the commission, the fee is paid equally by the buyer and seller.
Real Estate Commission Rules:
Real Estate Trading Regulation, Article 20
In real estate commercial transactions, the service fee rate cannot exceed four percent of the sales price, excluding VAT, stated in the brokerage agreement. In rental transactions, the service fee cannot exceed the monthly rent, excluding VAT, specified in the rental brokerage agreement. Unless otherwise agreed in writing, the cost of services is shared equally between the business owner and the buyer or tenant. Real estate agents and consultants cannot charge a fee for displaying properties. Real estate agents cannot demand the right or fee for displaying properties. However, they may only charge a transportation fee if the property is outside the designated area.
What is a Real Estate Commission Agreement?
When a real estate agent requests a purchase, a contract is required. This contract includes information about the property's value, the amount of commission to be paid, and other details. The services mediating the sale of the property between the buyer and seller are conducted according to this contract. By creating this contract, the real estate company imposes fees and responsibilities on both the buyer and seller. Therefore, it is important not to sign the contract without reading the terms and conditions to avoid various unfair practices in the future.
What happens if you don't pay commission on the property?
Buyers and sellers are obligated to pay the commission rates specified in their contracts with the real estate agent, as this agreement creates a right for the agent and an obligation for both the buyer and seller. If either party fails to fulfill their obligation within a specified period, enforcement proceedings may be initiated as per the contract.
You can use the following tool to calculate real estate commission.
