Are letting agent fees banned?

Real estate rental commission 2021

Home / Contracts / Rentals New Civil Code: “It is the property owners who must pay the real estate companies the commissions for managing their rental properties, not the tenants”.

It is a reiterated practice, and with greater anger, in the case of tenants, that the same real estate company that made the first contract, and charged the commission, in the renewal, charges the commission again, or does not renew the contract. A real abuse of the dominant position that makes the tenant captive.

“It is demeaning that a real estate professional charges the tenant a commission to renew the contract if he does not have to do any other management than to update the information fields in his computer.”

Even the abuse is that the commissions charged by these intermediaries: one or two months’ rent (undocumented), administrative expenses (undocumented), signature certification expenses (undocumented), contract stamping fees (undocumented) are added.

Who pays the fees of the real estate agency in a rental new law

The agency commissions involved in property purchase and sale or rental transactions in which a real estate agency is involved are so far assumed in most cases by the buyer or tenant; however, this could change in the new housing law if the request of Unidas Podemos and Facua, who are in favor of charging the expense to the main beneficiary of the service, is met.

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The proposal of Unidas Podemos is that the fees corresponding to the steps taken by the real estate company in both sales and rentals of real estate should be paid by the seller or lessor. This appears in the draft proposed by the purple formation to the PSOE, and collected by EP, and this is also demanded by Facua to avoid abuses.

Real estate rental fees 2020

The commission is the remuneration received by the real estate company for mediating in rental and sale transactions. Since the enactment of the new Rental Law, there have been important changes. Below, we tell you what they are.

For example, in the City of Buenos Aires the commission is paid by the landlord; in Córdoba by the tenant and in the Province of Buenos Aires by both parties. The local legislation also establishes the percentage or amount of the commission to be paid by the corresponding party.

“For housing rental cases, the maximum amount of commission that may be required from landlords will be the equivalent to four and fifteen hundredths percent (4.15%) of the total value of the respective contract. It is forbidden to charge tenants who are natural persons real estate commissions and expenses for management reports”.

Real estate rental fees 2021 province of buenos aires

Today, the market has changed radically. In order to avoid surprises, it is important for you to know that there is no regulation governing the amounts to be charged, but rather the agreement between the parties.

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In short, when we talk about commission for real estate agencies, we are talking about charging for management and work done by the real estate agency, and not the amount to be paid for advertising. To understand why, there is nothing like contacting your real estate agent and resolving any doubts about how the property is worked so that it reaches the ideal buyer or tenant: the one who needs the property.

A separate issue is the amount of the fees. In this matter, as we indicate in the article itself, the regulations establish a total freedom of agreement, so it is important that these are well defined between client and agent beforehand.

In addition, the article suggests 5% of the amount as a reference, which suggests to me that there must really be a life risk on the part of the person selling a second-hand house, because otherwise, I can’t think how to justify such an amount to the buyer. Frankly, if the seller is forced to increase the amount of the sale by 5%, I think that the real estate agents’ guild is a real burden to place the available stock on the market.

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