Understanding agency fees and their breakdown
What are estate agency fees?
Agency fees, also known as agency expenses or agency commission, are the fees paid to the estate agency for its services during a property transaction in Mauritius. They represent the remuneration of the estate agent for his work as intermediary between the buyer and the seller or the lessor and the lessee.
Services covered by agency fees:
The services covered by agency fees vary from agency to agency, but generally include:
Valuation of the property: the estate agent estimates the selling price of the property based on the local property market.
Advertising the property: the estate agent promotes the property on various media, such as property websites, social networks, etc.
Organising viewings: the estate agent organises viewings of the property with potential buyers or tenants.
Price negotiation: the estate agent negotiates the price of the property with the parties involved in order to obtain the best possible offer for the client.
Putting together the administrative file: the estate agent gathers all the documents needed to sell or rent the property.
Accompaniment to the notary's office: the estate agent accompanies the parties to the notary's office to sign the deed of sale or lease.
Who pays the agency fees?
In Mauritius, agency fees are generally shared between the buyer and the seller, or the landlord and the tenant.
• For sales:
The agency fees generally amount to 2% of the sale price of the property for the buyer and the seller, excluding VAT. This means that the buyer and seller will each pay 2% of the sale price + VAT to the estate agent. Let's take the example of a property sold for 10,000,000 Mauritian rupees. The agency fees would be :
- For the buyer: 2% of the sale price + VAT (15%) = 200,000 rupees + 30,000 rupees = 230,000 Mauritian rupees
- For the seller: 2% of the sale price + VAT (15%) = 200,000 rupees + 30,000 rupees = 230,000 Mauritian rupees
• For rentals:
The agency fee corresponds to one month's rent plus VAT. This means that the tenant and landlord will each pay one month's rent + VAT to the estate agency.
Other expenses
In addition to the agency fees, there are other fees to be expected in a property transaction in Mauritius, such as :
- Notary fees: notary fees cover the services of the notary, who is responsible for drawing up the deed of sale or lease and ensuring the legal certainty of the transaction.
- Registration fees: registration fees are taxes paid to the Mauritian government to register the sale or rental of a property.
If you have any questions about real estate, please do not hesitate to contact our agents by telephone or by e-mail using our contact form. Mauritius - Evian - Thonon
DECORDIER immobilier Grand Baie
Phone : +230 268 2828
E-mail : contact@decordier-immobilier.mu
Website : www.decordier-immobilier.mu