Everything You Need to Know About Real Estate Commissions
For those interested in renting or purchasing a new home, the house's location, the building's age, room sizes, and number of rooms are all critical matters. Our real estate agents are compensated with a real estate commission for their services, as they effortlessly locate various elements like these for you and serve as a liaison between the homeowner and the tenant. So how much are real estate agent commissions in Turkey, and what are the local procedures regarding real estate commissions? The answers to all the questions you need to know about real estate agent commissions are here at Nest Invest.
What Are Real Estate Commissions?
In order to guarantee that they serve as middlemen in the sale of real estate and are compensated with commissions, real estate businesses enter into contracts with either the buyer, the seller, or both prior to the transaction. The computation of real estate agent commission is not at all random. First of all, complying with the Real Estate Trade Regulation is mandatory. Article 20 of the regulations includes further specifics regarding the rates and details when calculating a real estate commission. The Real Estate Agent Commission Law safeguards buyers, sellers, and real estate agents, and a real estate commission of 4% of the sales price must be paid in total by the parties selling and purchasing the real estate. 18% VAT is charged on top of the commission amount as well.
How Do Real Estate Commissions Work?
When signing a real estate contract, there are a few things to consider before the agreement. The buyer-seller and the real estate consultant's signatures are required, and the contract needs to be in writing with precise subject and content. Ensure you have a contract in place if you wish to purchase real estate via a real estate agent. Verify that the contract contains details regarding past transactions, the amount of commissions for real estate agents to be paid, and the real estate's value. Within the parameters of this contract, the real estate commission is addressed to the real estate agent. Make sure to read the contract conditions before signing so you won't encounter any unexpected inconveniences.
What Are the Average Real Estate Commissions in Turkey?
The maximum amount of 2% of the sales price + 18% VAT is the typical real estate agent commission for real estate sales transactions in Turkey. The commission is paid to the seller and the buyer separately. Only the buyer or seller is authorized to pay the real estate agent commission, which is 4% overall, provided a written agreement is made. The maximum amount of real estate commission for rental transactions is one month's rent plus 18% VAT. Generally speaking, even though the tenant is responsible for paying the rental commission, the buyer and seller may also split the commission equally if the tenant's payment of the commission is not specified in the contract. The Regulation on Real Estate Trade, Article 20 states that the service charge rate in purchase and sale transactions, exclusive of value-added tax, is limited to 4 percent of the sales price as stated in the purchase and sale intermediary contract. Unless specified otherwise, the buyer or tenant automatically splits the service charge equally. The real estate agent is not entitled to any compensation or commission for showing and exhibiting the property.
For more information on real estate commissions and other real estate procedures in Turkey, contact our expert sales team here at Nest Invest.
