Does the Buyer Pay the Real Estate Agency

Who pays the agency commission by law

The law does not prescribe that the seller always pays or the buyer always pays. The commission is paid by the party that signed the brokerage agreement with the agency. The contract must clearly state the commission amount, payment method, and payment deadline.

Common practice in Serbia

In practice, when an agency works for the seller and advertises their property, the seller most often pays the commission. The buyer may pay the commission if they engaged the agency to find a property, organize the purchase, negotiate on their behalf, or if such an obligation is clearly agreed.

When the buyer may pay the commission

The buyer may bear the commission cost when they sign a brokerage agreement with the agency or use a special property-finding service based on their criteria. It is important that the buyer knows before a viewing whether a commission exists, how much it is, and when it is paid.

• Brokerage agreement signed with the buyer
• Exclusive property search based on buyer criteria
• Mediation in negotiations and purchase organization for the buyer
• Purchase of an investment project if buyer commission is separately agreed

Can one agency charge commission from both parties

It is possible for an agency to have a brokerage agreement with both the seller and the buyer, but obligations must be clearly agreed and transparent. The buyer should know in advance whether the agency charges commission from them, from the seller, or from both parties.

When the payment obligation arises

The broker most often acquires the right to commission when the sales contract for which they mediated is concluded, or a pre-contract if so agreed. The agency cannot demand partial commission payment in advance before concluding the pre-contract or contract for which it mediated.