The sliding scale displayed by iad is reassuring at first glance, but reading the mandate and understanding the billing mechanisms regularly pose problems for both sellers and buyers. We observe that the most costly errors do not concern the commission rate itself, but rather what surrounds it: type of mandate signed, distribution of fees in the deed, and confusion between the displayed percentage and the actual cost borne by each party.
iad Fees and Calculation Base: A Mechanism Often Misunderstood
The iad scale applies a sliding scale based on the sale price of the property. The higher the transaction amount, the lower the nominal rate decreases. This sliding scale gives the impression of a consistently low rate, whereas the effective rate depends on the tier in which the net selling price falls.
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The most common mistake is to mentally apply the lowest rate of the scale to the entire transaction, as one would with a single rate. In reality, the fees are calculated on the displayed sale price (including agency fees, or excluding fees depending on the wording of the mandate). If the seller does not check on which base the percentage applies, the gap between the expected amount and the actual amount can represent several thousand euros.
We recommend always asking the iad advisor for a written simulation of the total fees, calculated on the desired net selling price. This simulation should be included as an annex to the mandate before signing. Identifying common pitfalls at iad starts precisely with this verification of the base.
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Exclusive iad Mandate: Clauses That Sellers Overlook
The exclusive mandate remains the format pushed by the majority of iad advisors, as it guarantees them payment in the event of a sale. The seller sees it as a strengthened commitment of means. The trap lies in the exit conditions.
The irrevocable duration of the exclusive mandate is often three months. During this period, even if the seller finds a buyer through their own means, the fees remain due to the advisor. Many sellers sign without reading this clause, convinced that they can terminate at any time.
After the irrevocable period, the mandate generally continues by tacit renewal with a notice period of fifteen days. The classic mistake: sending a termination letter the day before the anniversary date, whereas the notice period starts from receipt. A registered letter sent too late extends the mandate for an additional period, and thus the obligation to pay the fees in the event of a sale during this time.
Simple or Exclusive Mandate: Direct Impact on Fees
With a simple mandate, the seller can entrust their property to several professionals or sell alone without incurring fees. However, the rate proposed by the iad advisor may be slightly higher in a simple mandate than in an exclusive one, as the risk of non-payment increases for the agent.
- Check if the communicated scale corresponds to the simple or exclusive mandate, as the two scales may differ
- Read the remuneration clause in case of sale to a buyer presented by iad during the validity period of the mandate, including after termination (recall clause)
- Check the duration of the recall clause, which obliges payment of fees if the buyer was presented by the advisor within a defined period after the end of the mandate
Distribution of Fees Between Seller and Buyer in the Notarial Deed
At iad, as with any real estate professional, the fees can be borne by the seller or the buyer. This choice, stated in the mandate, has direct tax consequences that both parties underestimate.
If the fees are borne by the buyer, the transfer duties (notary fees) are calculated on the price excluding fees. Therefore, the buyer pays transfer duties on a lower base, which reduces their total acquisition cost. Conversely, when the fees are included in the sale price (seller’s charge), the buyer pays transfer duties on the total amount, including fees.
The trap: many sellers accept the mention “fees borne by the buyer” without realizing that this increases the price displayed in the listings. An identical net selling apartment will appear more expensive in listings, which may discourage some buyers during their search. The right arbitration depends on the local market and the price positioning of the property.
iad Agency Fees and Negotiation: What the Scale Doesn’t Say
The official iad scale is public, but each independent advisor has a margin for negotiation on their fees. The status of independent agent implies that the advisor sets their conditions within the framework of the maximum scale authorized by the network.
We observe that sellers rarely negotiate iad fees, assuming that the displayed rate is already lower than that of a traditional agency. The Competition Authority noted in its June 2023 opinion that the fees of agent networks were on average twenty to thirty percent lower than the market average. This data does not mean that the rate proposed by a given advisor is optimal for your transaction.
- Compare the amount in euros of the fees, not just the percentage, with at least two other local professionals
- Ask if the advisor accepts a reduced rate in exchange for an exclusive mandate
- Ensure that the negotiated rate is clearly stated in the signed mandate and not just in an oral exchange or message
The issue of agency fees at iad is not limited to the percentage. The actual cost depends on the base, the type of mandate, and the seller-buyer distribution. Reviewing each clause of the mandate before signing, demanding a detailed simulation, and comparing amounts in euros with other real estate professionals remain the three reflexes that prevent unpleasant surprises at the notarial deed.