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Sale - Agency fees

Any transaction carried out through a real estate agency gives the right to a commission that covers the investment and the time that the agency has spent to allow the good end of the transaction: what is the amount and who to ask for this commission?

What does the law say about real estate agent commissions

The Grand-Ducal Regulation of January 20th 1972 fixing the scale of maximum commissions that may be invoiced by real estate agents provided, in Article 1, a maximum commission of +/- € 372 up to a maximum of € 12.500. For sales whose price exceeded € 12.500, the maximum commission was set at 3% excluding VAT of the sale price.

The law on which the Grand-Ducal Regulation of January 20th 1972 is based has been repealed by a law of May 17th 2004 on competition. It applies to all production and service activities. It follows that the prices of goods, products and services are freely determined by the game of competition, including the fixing of the percentage of the commission of the real estate agent.

There has, however, been legal controversy over whether or not the Grand-Ducal Regulation of January 20th 1972 has no legal basis, but the latest state of the case law, like the doctrine, considers that this regulation can no longer to be applied.

Amount of commission for a sale

The commission is either a percentage of the selling price, usually 3% excluding VAT, or a fixed price. These fees are included in the sales price displayed.

To whom to charge this commission?

In the context of a real estate sale, the commission is due by the seller, only once the sale has been realized. It must be paid as soon as the notary's valid deed of sale is signed. When a person decides to sell a property in Luxembourg and uses a professional in the sector, a service is rendered to him, so it is up to that person to pay the agency fees. Under a search warrant, it is the buyer who pays because a service is rendered to the buyer. It is also possible in some cases to share fees between buyer and seller, even if this situation is very rare.