Maybe you are about to rent a house or buy a house that you have always wanted. Either way, you will face real estate fees that you have to pay! As SakoLife, we are honored to be with you in all real estate buying and selling processes.
If you’re going to be a tenant, you’ll need to cover costs such as a deposit, a monthly or rental fee, and shipping.
If you are going to own a house, you will face title deed fees or maintenance costs. And then there are real estate commissions or real estate fees whether you are renting or buying the property. In this case, you need to adjust your budget accordingly.
What is the Real Estate Commission or Real Estate Fees?
You may need an expert opinion to properly handle the processes of buying, selling or renting a home. Real estate agents allow you to deal securely and deal with documents and communicate with potential clients.
A financial exchange occurs when a property is owned or leased. Real estate agents who facilitate this process receive a commission, ie real estate fee, to raise their own capital. Since you receive brokerage services in the legal process, real estate agents are entitled to a commission, which can be a purchase commission and a rental commission.
How Much is the Real Estate Commission?
It is difficult to say that there is a specific amount that representatives receive. Realtors receive commissions based on the rental or sale value of the home.
So how much commission do real estate agents get? Depends on rental and sales negotiations. This rate is determined according to the Regulation on the Purchase of Immovable Goods.
The real estate agent can receive a maximum of 2% + VAT / 18% of the sales price from both the seller and the buyer.
In rental negotiations, they can receive a maximum of one month’s rent + VAT (18%) commission.
Who Pays the Real Estate Commission?
You may be wondering who will pay the agent’s share, as you will set your budget accordingly. So, “Does the buyer or the owner pay the real estate commission?” answer to the question; both yes and no, depending on whether it’s a rental or a purchase.
As mentioned above, the purchase commission is paid individually by both the buyer and seller. If they agree, only the buyer can also pay.
Unless otherwise agreed, the tenant bears the real estate fees and pays the commission when renting.
How is Real Estate Commission Calculated When Renting a House?
You’ve found a home that meets your needs and expectations and can’t wait to move in! So, how is the real estate commission calculated?
Let’s say the monthly rent is 3000 TL. In this case you have to calculate the VAT and add it to 3000 ₺, which is equal to 3540 ₺. This is the maximum amount you can pay.
Real Estate Commission Regulation
Real estate commission rates are determined by the Real Estate Purchase Regulation. According to article 20:
In real estate purchases, the service fee rate cannot exceed 4% of the sales price in the brokerage contract, excluding VAT.
In rental transactions, the service fee rate cannot exceed the monthly rental fee specified in the contract, excluding VAT.
Unless otherwise agreed in writing, the service fee is shared equally between the owner of the business and the buyer or tenant.
What Happens If You Don’t Pay Commission?
Some real estate fees are mandatory payments. Let’s say you rented or bought the house that the agency showed you, but you cut the agency. In this case, do you have to pay the commission to the agent? What happens if you don’t pay commission on the house you rent, sell or buy?
Property fees must be paid. You have to pay the commission. If the real estate agent’s name is mentioned in the brokerage agreement, legal action can be taken.
If there is a contract, you must pay a commission when renting or buying the house.
However, you don’t have to pay for real estate that the agent shows you but that you haven’t rented or purchased. If you are touring an out-of-town property, the agent may ask you to cover the travel costs.
Can Realtors Increase their Commission Rate?
In accordance with the regulation, agencies cannot demand higher commissions or real estate fees than determined.
In case of violation of this rule, the Ministry of Customs and Trade imposes a fine of 3000 dollars on the agency. If the agent breaks the rule one more time in a year, the penalty is doubled for each incident. In addition, if a chain company commits this violation, a five-fold penalty is applied.
Real estate agents acting as a bridge between the landlord and the buyer receive a service fee of 4% (2% from the buyer, 2% from the seller) of the maximum property value excluding VAT. In the rental process, they receive a maximum of one month’s rental fee. The relevant articles in article 20 of the regulation are as follows:
In real estate purchases, the service fee cannot exceed 4% of the sales value specified in the contract, excluding VAT.
In leasing transactions, the service fee cannot exceed the one-month amount of the rental fee excluding VAT.
Unless otherwise agreed in writing, the service fee is shared equally between the owner and the buyer or tenant.
