Who pays the estate agency commission, the buyer or the seller?

Why the seller is usually the paying party

The agency provides its service to the owner who wishes to transfer the property: marketing, viewings, negotiation and coordination through to completion. That mandate is bilateral between the owner and the broker. Fees become due according to the conditions of the instruction agreement (often when the sale is formalised via a deposit contract or title deed, depending on how you draft it).

The buyer may benefit indirectly from the agency's work, but is not a client of the sales instruction unless they hire other services (for example, a buyer's property agent, which is a different service).

Can the buyer pay? Only if agreed and suited to the transaction

In theory, the parties can structure the transaction in different ways: a higher price with commission included, a seller bonus deducted from the buyer's side, or professional agreements in complex transactions. In typical residential property transactions between consumers, passing the commission on to the buyer without transparency can create conflict and lead to review under consumer regulations.

If you see adverts stating "no buyer commission", it usually means that the seller (or the agency under its instruction agreement) absorbs the mediation cost, not that there is no commission. Always ask who signs the mandate and when payment is due.

Instruction agreement: clauses you must read

• Party liable for payment: name of the owner or authorised representative.
• When payment becomes due: deposit contract, private contract, title deed or handover of keys.
• Calculation basis: final sale price or another agreed criterion.
• Exclusivity and duration: selling on your own during the instruction agreement period may still generate a commission if the contract provides for it.
• Advertising expenses charged separately from the commission.

In joint exclusivity or inter-agency collaboration, there may be an internal fee-split between professionals; this is not usually passed on to the buyer, unless specifically agreed.

Property sale versus tenancy

In residential lettings, transparency requirements regarding fees and who can charge what have grown (an evolving national and regional framework). Do not automatically apply those rules to property sales. In resale property transactions, the sales instruction agreement and the Civil Code on contractual obligations govern the matter. If rental and sales contracts are combined or confused, read each document separately.

Buyer with their own agent

A buyer can hire purchasing advisory services (a search mandate or personal buyer's agent). Those fees are paid by whoever orders that service, usually the buyer, under their own contract. Do not confuse that fee with the seller's agency commission.

In transactions involving two brokers (one for each party), each instruction defines who pays. Coordinate in writing to avoid opaque double billing for the same milestone.

Common mistakes

1. Assuming that "the buyer always pays the estate agent" by analogy with other countries.
2. Signing a deposit contract without having seen the seller's instruction agreement when there are doubts regarding outstanding commission.
3. Believing that refusing to make the buyer pay commission frees the seller if the seller signed an instruction agreement with a success-fee clause.
4. Failing to ask what happens if the transaction falls through after the deposit contract: partial fees or marketing costs may be specified.

Impact on the negotiated price

Even if the seller pays, the commission forms part of the total cost of the transaction and can influence the minimum price accepted by the owner. The buyer negotiates the purchase price; the seller negotiates the net amount after fees, capital gains tax, mortgage and other expenses. Each party should calculate their side using their own figures.

In transactions where several agencies collaborate, ask who invoices the seller and what happens if you terminate the agreement early. Professional transparency does not replace reading the mandate you sign.

Next step

If you are selling, review the instruction agreement before publishing. If you are buying, confirm that you understand the total price and which services, if any, you are contracting directly.

Before listing the property, confirm with the agency whether there is a collaboration fee with other brokers and how it affects your net proceeds if the buyer comes through another office.

Sky Real Estate manages property sales with clear mandates and milestone updates. Details of our service at home sales and promotion.

Guidance content. Please check your brokerage contract; this does not replace legal advice.