Frequently asked questions

Why should I sign a sales mandate?

A sales mandate gives the real estate agent the right to put up for sale a property that does not belong to him, and allows him to take out his professional liability insurance if necessary. Marketing real estate without a sales mandate amounts to acting without a license to sell, and therefore without insurance.

In Luxembourg, is the commission of the real estate agency legally set at 3% excluding tax of the amount of the sale?

The commission of 3% excluding tax of the amount of the sale is a custom but not an obligation; each agency can freely set the percentage of its commission, in particular if it foresees specific difficulties in selling certain properties. 

How long does a sales mandate last?

The standard duration of a sales mandate is twelve months; it includes, or not, a variable exclusivity period.

Should I offer my property for sale at a price much higher than its value "to see if it works because there is no rush"?

It is better to put your property up for sale at the market price when you really have decided to sell it.
Indeed, a property that is too expensive for too long becomes invisible over time as potential buyers get used to seeing it on ad sites. The risk is mainly to attract investors who will propose well below the offered price. In the end, your property will sell, at best, at market price.

Do I reduce my chances of selling by concluding an exclusive mandate?

Contrary to popular belief, the exclusive mandate allows you to sell faster and at a better price than the simple mandate. In fact, exclusivity avoids what is called "wear and tear of the property": with a simple mandate, an ad can appear in several real estate agencies and ends up no longer attracting the attention of potential buyers; moreover, it favors the negotiation of the price downwards because several real estate agents are in competition.

How long am I committed by a sales agreement?

When a sales agreement contains a clause to obtain a bank loan, it lasts the time necessary to find financing. However, the maximum duration of this research can be set at a precise, but reasonable date, beyond which you are released from the sales agreement.

Can I sell my property myself after I have signed a mandate with a real estate agent?

Yes, then you do not have to pay any commission, except in the following cases:

- You conclude the transaction directly with a potential buyer who has been introduced to you by the real estate agent, so you must pay the full agency commission.

- You conclude the transaction directly with an buyer who you have found yourself, but you have signed an exclusive mandate, so you are liable for half of the agency commission.

- Note: these provisions may remain applicable even if the sale is concluded after the expiration or termination of the sales mandate.

What does a sales agreement commit me to, without a bank loan clause?

This type of compromise is worth a sale; From the date of signature of the compromise, the purchaser has ten days to pay the amount of registration fees to the account of the Registration, Domains and VAT Administration.

What is the difference between the tax on speculation and the tax on capital gains?

For someone who sells another property than his main residence, the speculation tax (42%) applies to the income generated by the difference between the cost of the asset and its resale price, if the resale takes place during the 2 years following the acquisition.
The capital gain tax (21%) applies to the same income if the resale takes place after two years following the acquisition
Income = resale price - (revalued purchase price on the date of resale + costs of acquisition, renovation, etc.)