Commission sharing between agents is a widespread practice in Spain, though it might seem unfamiliar to UK buyers who are used to dealing only with the estate agent who has the property for sale. In Spain, this practice usually occurs when one agent represents a potential buyer while another holds the contract with the vendor. The two agents collaborate and share the commission from the sale. This arrangement can be applied to individual properties or be formalised through a collaboration agreement in which agents advertise an entire portfolio of properties on behalf of another. Such systems allow agents to market vast portfolios; large agencies might have tens of thousands of listings, the majority of which are primarily listed by collaborating agents rather than directly by the agency itself. In some areas of Spain, there are now organised MLS (Multi Listing Services) where agents can search for properties in other agents' portfolios.

While in the USA the concept of two different agents working on a single sale is familiar—where it is entirely normal for a buyer to work with a Buyer’s Agent and a vendor to work with a Vendor's Agent who will split the sales commission equally—it is important to note that, while the roles of buyers' and vendors' agents in the USA are clearly defined and regulated by industry bodies with common standards, practices, and commission payments, in Spain the practice is generally not defined or regulated.

NB: I say “generally” because this is the case in areas that are popular with overseas buyers and therefore relevant to the vast majority of readers of this book. There are exceptions to the rule. For example, in the city of Cartagena, Murcia, it is standard practice for local agents to charge 2% commission to the buyer and 2% to the vendor. This would be the case whether a single agent is involved in the sale, charging 4% in total, or if one agent represents the vendor, charging them 2%, while another represents the buyer, charging them 2%. This standard practice is governed by the local branch of the API—a real estate agent trade association. As you move outside of the main areas for overseas buyers, it is not unusual to encounter local practices that differ from the practices I discuss in this book.

It is not uncommon for buyers to view a property with an agent while being completely unaware that the property is actually listed by another agent, or for property vendors to be unaware that their property is being marketed and viewed by agencies they have never met.

There are some advantages to the practice of commission sharing. If, as a buyer, you become comfortable dealing with a particular agent and find that the agent has a good grasp of what you are looking for, that agent can seek out properties that match your needs from partner agencies. This way, you avoid the need to repeatedly go through the process of explaining everything you are looking for to multiple agents and inevitably waste time looking at unsuitable properties while the agent familiarises themselves with your personal tastes. However, the downside is that it leads to some agencies listing hundreds of properties that they know nothing about and on which they have carried out no due diligence. They effectively become taxi drivers, paid only on a successful sale, having no real idea of whether the property is suitable for you before they view it with you for the first time.

When it comes to commission sharing, there is one particular practice that, while now rare, should be avoided at all costs.