Agency fees to Property Mauritius following a successful transaction?
It is important to note that the contracts between an agency and its customers are free according to the parameters of the free market and the precepts of the Civil Code.
The rates that follow are based on current customs that bring together most professional Real Estate agencies and should be deferred, in any case, on any sales contract, mandate etc.
In Mauritius Agency fees are traditionally payable by BOTH parties (Owner/Landlord and Buyer/Tenant).
The Agency fees on sales: 2% of the purchase price + VAT on the seller’s side and 2% of the purchase price + VAT on the buyer’s side.
There are exceptions for sales of RES / IRS / PDS projects. Agency fees negotiated between the agency and the promoter are free and of different percentages. The agency fees to the buyers also are free depending on the negotiation on the file, but generally are between 0% and 4%.
The Agency fees on rent (less than 12 months): 12% of the total rental + VAT on the landlord and 12% of the total rental + VAT on the tenant
The Agency fees on the rent (standard rental of 12 months minimum): 1 month rent + VAT on the side of the landlord and 1 month rent + VAT on the tenant’s side
Agency fees on the sale of business: 3% on the value of the purchase + VAT on the side of the buyer and 3% on the value of the purchase + VAT on the seller’s side. Generally, in the case of a sale of business, the agencies also charge the owner of the building (and the buyer of the business as a tenant) if the lease agreement is renewed or redone with the same rates indicated for rentals.