Selling Property

[Bugsbunny]

Just a quickie - not after much detail but just the basics please. If I were to try and sell an apartment, how much (if anything) do I have to pay Estate Agents etc up front? Or is it like the UK where you tend to pay up once the property is sold? The apartment is in Torremolinos and I live in England.

Thanks in advance.

[gerryh]

how much (if anything) do I have to pay Estate Agents etc up front?

Absolutely nothing.
They only get paid their commission if they sell it.
Anybody who asks for money up front is probably a con artist.
Cheers
Gerry

[Jool]

Some Agents may ask you to pay 10 euros so that they can obtain a nota simple as this is what it costs them to do this online (they need one to comply with decree 218/2005) but you should not pay anything more than that upfront.

[Bugsbunny]

Thanks folks - that's what I was hoping you would say

[Miro]

Just to add my tuppence.....3% is a fair commission rate these days, 5% should be the absolute maximum, and make sure you understand the terms etc. with the agent before agreeing to any deal. If you accept an offer, make sure you get a contract signed by you and the buyer with all the details. A friend recently sold his apartment in Torremolinos; the agent sold it for 3k more than the price he had been told was offered, without telling him. He didn't lose exactly, as he had accepted the lower price, so in effect the buyer paid the agent 3k on top of the sale price, but even so, it was unethical and dishonest, so beware. Also, if you use a lawyer, which I imagine you will since you are not based in Spain, get their fees agreed up front to avoid any nasty surprises.
Remember you will be liable for Plus Valia (your lawyer will be able to get an estimate for you, and pay on your behalf after the sale) and also potentially CGT.
Finally - good luck!

[scotty]

3 & 5% . It's 1.5% here in Ireland. One of my customers here (a venture capital firm) is thinking of opening on the CDS as an estate agent and charge 1% . Thats going to upset the applecart.

[Bugsbunny]

Thanks for your advice guys but it really is only an idea. I inherited my parent's apartment early last year and have no intentions of selling. But of course you never know what's round the corner and I am by no means well off. If it becomes too expensive for me to keep it on it will have to be sold but hopefully it won't come to that. I've got visions of me and t'other half spending our summers (ha ha) in England and our winters in Spain if/when we reach retirement but time will tell....

[Miro]

3 & 5% . It's 1.5% here in Ireland. One of my customers here (a venture capital firm) is thinking of opening on the CDS as an estate agent and charge 1% . Thats going to upset the applecart.

This is Spain not Ireland. You can't compare applecarts with pearcarts! Many have had the same idea, but a little research into the matter is called for. Things aren't quite that simple.

[Bugsbunny]

Miro please forgive my ignorance but what is CGT?

[ian.wilson]

People have tried the 1% commission here in Spain, it doesn´t work. There is so much work to get a deal to actually go to completion and in an unregulated real estate market it´s not easy.

Good luck though you will need it.

[gerryh]

Miro please forgive my ignorance but what is CGT?

Capital Gains Tax.
Cheers
Gerry

[Bugsbunny]

Oh yes silly me. Thank you