Estate agent fees on completion

Abusesurvivor

Is it reasonable to expect that estate agent fees be sorted by solicitor and taken from proceeds of sale?

Allinall

I always assumed that was the way it was done.

gipi

Estate agent fees are normally taken from the booking deposit paid by the buyer to the agent. Unless the booking deposit was small, there shouldn't be any additional fees to pay.

Tweeter

Doesn't work like that, it's actually very straightforward. The estate agent takes their fee from the booking deposit you pay (or from the purchaser if you're selling) when an offer has been accepted. They will release the balance to either yourself or your solicitor on completion of the sale

Abusesurvivor

Would it be expected then to see the deposit in full as a deduction (with all the solicitor’s fees etc) from the house sale price and for the estate agent to refund the balance of deposit minus their fee directly to me the seller on closing?

JVince

https://www.boards.ie/discussion/comment/123907381#Comment_123907381

No.

Estate agent would take their fees from any booking deposit that MIGHT have received. And it can just be a handy way of the fee to be received.

The contract deposit is always paid to the solicitors account.

A booking deposit is refundable (until contracts are signed) and can sometimes be a token payment of €100.

If the agent charged 2% + vat and sale price was €300k and deposit was 5k, the solicitor would discharge the balance of the fee due to the agent. The solicitor will also take their fee from the sale price

When the sale is complete you should get a closing statement with all costs and funds listed individually.

Booking deposit

Contract deposit

Purchase payment (excl deposits)

Agent fees + vat

Solicitor fees + vat

Search fees

and any other fees that may have been needed

Abusesurvivor

So for example, my final statement (in advance of closing) has:

Sale agreed price €300,000

Less solicitor’s fees + VAT €3500

Less several other expenses like land registry etc €500

Less estate agent deposit €5000

Balance to seller (me): €291,000

Claw Hammer

https://www.boards.ie/discussion/comment/123907542#Comment_123907542

If the booking deposit was accounted for like that it may be that the fee was lower and the balance would come directly from the agent. If the agents fee was also 3.5k the solicitor would write to the agent and advise that the sale had closed. the agent would or should pay back the 1500 directly. The solicitor may show the agents fee even though the solicitor never handled that money just to balance the account. So the total sale price of the house is accounted for.

Abusesurvivor

So the estate agent’s fee in my case is less than the deposit so I will be due back about €2000. I had hoped that this would come from the solicitor as part of sale proceeds but I am being directed to look for the estate agent’s fee note myself and sort out the refund on closing.

Tweeter

https://www.boards.ie/discussion/comment/123907765#Comment_123907765

That's correct, in your case here the estate agent will refund you the balance from the booking deposit after the keys have been handed over to the buyer. You could request that the estate agent pay the balance to your solicitor but you're better off just collecting this yourself

Claw Hammer

https://www.boards.ie/discussion/comment/123907765#Comment_123907765

The solicitor never got the money so can't give it to you. The fee arrangement was negotiated between you and the estate agent and the solicitor naturally doesn't want to get involved in that.

Abusesurvivor

So the estate agent’s deposit (not their fee) appears in the solicitor’s final statement but that doesn’t mean they necessarily received it?

Marcusm

https://www.boards.ie/discussion/2058426733/estate-agent-fees-on-completion

In my experience, estate agents seek to take a booking deposit which approximates to the sale fee. In other circumstances, it would be expected that the solicitor would undertake to discharge the fee from the net proceeds - assuming they are sufficient.

bop1977

when i sold my house, the estate agent got a booking deposit of 5k. he took his fees out of that and deposited the balance into my account when the solicitor instructed him to hand over the keys. the money never went near the solicitor at all and i got a closing statement from him and a second one from the solicitor.

C3PO

https://www.boards.ie/discussion/comment/123909344#Comment_123909344

I had the same experience twice over recent years!