335 Agent Fees - when are they payable?

Agents fees are due at the Compromesso stage. This leaves the issue of how much assistance the agent gives you thereafter, through to and beyond the Rogito, with no financial incentive. A good agent will carry on helping you, so choose your agent well.

What happens if something goes wrong after the Compromesso is that you stand to lose a lot of money! With so much at stake, its very important to make sure the legal side of the deal will pass the scrutiny of the Notaio before you sign the Compromesso. Again, a good agent should already have done the necessary preparatory work for this.

Sandra….

Commissions are normally paid at the time of the compromesso. However, you can also stipulate that these are to be paid at the Rogito, providing you have reached an agreement with the agent/broker to do so (I would insert a clause in the preliminary contract to this effect).

Articles 1755, 1756, 1757, 1758 and 2950 of the Civil Code cover the issue of agent’s rights to receive commissions. This right comes into effect the moment the contract between buyer and vendor becomes effective.

For example, Article 1755 stipulates that agents/brokers are entitled (providing they are legal of course) to receive commissions if the sale goes ahead as a result of their intervention.

Commissions are not paid, however, if there is no sale. It would be up to the contracting parties as a gesture of good will to compensate the agent/broker for any services provided, or to reimburse any costs.

But do note that in the event either of the parties pulls out after the preliminary contract has been signed, the agent/broker (providing that they are not operating abusivamente) is still legally entitled to receive a commission.

I would make sure that you cover all of these issues in your preliminary contract.

One other point worth noting is that when paying deposits of more than 12.500 euro...it is a good idea to obtain bank guarantees from the vendor's bank so that you can get your money back in the event of problems. Bear in mind that even though you would be entitled to get your money back if the vendor is in breach of contract, the process can be lengthy and costly so extra precautions are always wise.

Deposits are either in the form of the caparra confermatoria or caparra penitenziale. They both have far reaching consequences so make sure you know which one you are dealing with.

Sandra, NO no don't pay the agents at the compromesso, we paid ours at the end of the deal at the Notaios office, once we had keys to the house!! Here in Marche, the agents didn't expect to be paid at the compromesso. It seems all areas of italy do things differently, but I'm sure you can negotiate with your agents to do their job and see it through to the end!
Sally

[QUOTE=Sally]Sandra, NO no don't pay the agents at the compromesso, we paid ours at the end of the deal at the Notaios office, once we had keys to the house!! Here in Marche, the agents didn't expect to be paid at the compromesso. It seems all areas of italy do things differently, but I'm sure you can negotiate with your agents to do their job and see it through to the end!
Sally[/QUOTE]

Easy to say but the law says agents are entitled to their commission when the parties have reached an initial agreement (either on signing the proposta di acquisto or, if you skip that stage, the compromesso/preliminare). That doesn't mean that the job ends there, though. Every agent we deal with sees it through to the end and beyond. But you need to make sure your agent provides this service.
Sarah
[URL=http://www.gardahomes.co.uk]Garda Homes[/URL]

Hi!
In our case, it was stipulated in the compromesso how much the fees would be for both seller and vendor, and if either party should pull out after signing the compromesso they would then be liable to pay the full fee. Otherwise, if all went to plan, the fee would be due on completion, when the deal has been 'sealed'. We also paid in the notary office after all was signed and paid for. I was under the impression that this is the normal procedure, similar to the UK.
Good luck,
Sue

I would make payment arrangements at the rogito (completion) if possible. If not, I would do a 50% of commission at compromesso and 50% upon completion. Personally, I've seen many estate agents becoming disinterested and unresponsive after the compromesso signing ...chasing "bigger fish" elsewhere... very frustrating. A financial incentive always helps!

The bank guarantee suggested by Charles Joseph makes lots of sense especially when the risks are high. As a simpler alternative, I've also got deposit money to be left with a notary until specific contractual conditions are met. Only then can the Vendor get their hands on it!

David
[url]www.ourtoscana.com[/url]