Bridging the real estate gap: What happens if I skip the agency?

When you decide to sell your home, you can choose to do it on your own and save the agency commission, or you can remember a professional to do the work for you. However, if you decide to take advantage of the agency's work and then avoid paying the commission, what you are doing is fraud. This was the case for Carlos and Mercedes, who tried to get out of their commitment to a real estate agency and ended up facing serious legal consequences.

The Agency Commitment

Mercedes decided to sell her house and to do so, she trusted a real estate agency. This agency, with its experience and network of contacts, quickly found an interested buyer: Carlos. After several visits and negotiations, a price for the house was agreed upon. However, before finalizing the deal, Mercedes and Carlos decided to end their relationship with the agency and make the sale directly between them, with the intention of saving the agency's commission.

The Legal Repercussions

The agency, having fulfilled its part of the agreement, did not sit idly by. They filed a lawsuit against Mercedes and Carlos for non-payment of the agreed fees. During the trial, the agency presented compelling evidence of their work: signed assignment documents, records of visits to the home, and the various offers that were negotiated on price. This evidence made it clear that Mercedes and Carlos attempted to commit fraud by evading payment of the commission.

The Court's Decision

The Court of the Provincial Court of Barcelona, in its judgment of April 24, 2023, upheld the conviction. It determined that both Mercedes and Carlos should pay the real estate agency €18,000, as the seller, and €5,500 as the buyer, as well as the costs of the legal proceedings and interest. Although Carlos tried to appeal the judgment, arguing that Mercedes had persuaded him and that the agency had not completed its obligations, the court found that the evidence presented by the agency was conclusive. In addition, the agency had made it clear that, if the sale did not go through, they would return the fees. But, in this case, the sale did go through, only without its intermediation.

Lessons Learned

This case is a stark reminder of the importance of honoring commitments and agreements. While real estate commissions may seem high, evading responsibility can have much more costly consequences. In addition, real estate agencies offer a service that facilitates the selling and buying process by providing marketing services and their network of contacts.

It is essential that those who decide to sell or buy a property are well informed and aware of their obligations. Avoiding legal commitments to save a little money can result not only in economic consequences, but also in reputational damage and long and stressful legal proceedings. In summary, it is always advisable to act with integrity and transparency in any transaction.