Using Estate Agents for International Property Purchases

In the UK, buying a property typically means dealing with a selling agent (instructed by the vendor), instructing your own solicitor for the legal process, and potentially engaging a surveyor for a structural inspection. The estate agent represents the seller and is paid by the seller. The buyer's interests are protected primarily by their own solicitor.

This model is not universal. In many of the world's most popular property markets, the same agent represents both buyer and seller (creating a conflict the UK market has largely eliminated), agents may charge buyers directly, the legal process is handled by a notary rather than a solicitor, and agent regulation is absent or weak. For UK buyers operating in international markets, understanding these differences is essential to navigating the transaction safely.

UK Agent Regulation: The Benchmark

In the UK, estate agents are regulated by:

• The Estate Agents Act 1979 (sets basic conduct requirements)
• The NAEA (National Association of Estate Agents, now part of Propertymark) — a professional membership body with a code of conduct
• The Property Ombudsman (TPO) or the Property Redress Scheme: the two government-approved redress schemes that provide dispute resolution
• Anti-money laundering obligations under the Money Laundering Regulations

UK agents must be members of one of the two government-approved redress schemes. RICS-qualified agents (Chartered Surveyors) are also subject to RICS professional standards.

This regulatory framework provides UK buyers with protections: clarity on who the agent represents, an obligation to pass on all offers to the seller, and a redress mechanism for complaints.

International Agent Regulation: The Reality

Internationally, agent regulation varies enormously:

Spain: agents (agentes inmobiliarios) are not universally licensed or regulated at a national level. Some regions require registration. The API (Agente de la Propiedad Inmobiliaria) is a professional certification but not mandatory. This means anyone can operate as a Spanish estate agent without qualifications.

France: estate agents (agents immobiliers) must hold a professional card (carte professionnelle) issued by the prefecture, have professional indemnity insurance, and be members of a guarantee fund. This is relatively robust compared to many international markets.

Portugal: property agencies must be licensed by IMPIC (the construction and public works regulator). Individual agents are required to hold an AMI licence.

UAE: estate agents must be registered with the Dubai Real Estate Regulatory Agency (RERA) in Dubai, or equivalent bodies in Abu Dhabi. RERA registration provides a degree of consumer protection.

Thailand: there is no national estate agent licensing or regulation. Anyone can operate as a property agent. This is an important caveat in a market that attracts significant foreign investment.

Italy: agents (agenti immobiliari) must be registered with the local Chamber of Commerce and hold a patent after completing an examination. Professional standards vary significantly in practice.

Indonesia/Bali: property agent regulation is limited. Foreign ownership restrictions (foreigners cannot own freehold land in Indonesia) add complexity; buyers should take legal advice independently of the agent.

The Dual Representation Conflict

In many international property markets, a single agent commonly represents both the buyer and the seller in the same transaction. This creates a fundamental conflict of interest:

• The agent is paid (typically by the seller) a commission on the sale
• If the same agent is advising the buyer, their financial interest lies in completing the sale at the highest possible price
• The agent cannot simultaneously maximise the seller's price and minimise the buyer's price

UK buyers, accustomed to the UK model where the selling agent clearly works for the seller, sometimes fail to recognise this dynamic overseas. They treat the agent as a neutral party when in practice the agent's loyalty is primarily to the transaction completing (and to the seller who typically pays them).

The solution: always instruct your own independent legal adviser — a local lawyer or notary acting for you alone — to protect your interests. Do not rely on the selling agent for legal advice, title checks, or negotiation strategy. The agent's role is to facilitate; the lawyer's role is to protect.

Finding a Good Overseas Agent

Recommendations for identifying trustworthy agents in overseas markets:

Accredited professional bodies: despite the regulatory gaps, professional associations exist in most major markets. In Spain, look for API-certified agents; in France, FNAIM or SNPI members; in Portugal, AMI-licensed agents; in the UAE, RERA-registered agents. Membership of these bodies provides some assurance of professional standards.

Referrals from trusted expat networks: personal recommendations from individuals who have completed a property transaction in the market are often the most reliable source. Expat community groups (Facebook groups, forums, local expat organisations) provide peer reviews.

International agents with local expertise: some UK-based international property agents (Savills International, Knight Frank International, JLL) have offices in major markets and provide a familiar service model for UK buyers. They typically operate at the upper end of the market.

Agents who understand foreign buyer issues: local agents with deep experience of foreign buyers understand the specific issues (visa requirements, foreign ownership restrictions, tax implications for non-residents) that a purely domestic agent may not. This market-specific expertise is worth paying for.

Agent Fees by Country

Agent fees in international markets are typically higher than in the UK (where 1–2% of the sale price is standard):

Country	Typical agent fee	Who pays
UK	1–2% of sale price	Seller
Spain	3–5% of sale price	Seller (sometimes split)
France	3–8% of sale price (included in listed price)	Seller (included in price)
Portugal	5% of sale price	Seller
Italy	3–4%	Both buyer and seller (often 3% each)
UAE	2%	Buyer
Thailand	3–5%	Seller
Greece	2%	Both buyer and seller

In some markets (notably Italy), both buyer and seller pay agent fees — the buyer pays a percentage of the purchase price directly to the agent. This is a significant cost to budget for. In other markets (France), the agent's fee is typically included within the advertised price — meaning the net price to the seller is lower.

Always clarify at the outset whether the advertised price is inclusive or exclusive of agency fees and who is expected to pay them.

The Notary System in Civil Law Countries

Most European countries use a civil law system in which the notary (notaire in France, notario in Spain, notaio in Italy) plays a central role in property transactions.

What the notary does:

• Prepares the deed of transfer (acte de vente, escritura, atto di compravendita)
• Verifies legal ownership and checks for charges against the property
• Registers the transfer with the land registry
• Collects and disburses funds in the transaction
• Ensures the transaction complies with local law

What the notary does not do:

• Advise either party on the merits of the transaction
• Check the structural condition of the property
• Negotiate on behalf of either party
• Provide legal advice (they are an impartial recorder of the transaction)

The notary is not the equivalent of a UK solicitor: UK buyers often assume the notary provides legal protection equivalent to a UK conveyancing solicitor. This is incorrect. The notary's role is administrative and regulatory, not advisory. An independent local lawyer instructed by the buyer provides legal advice and due diligence that the notary does not.

Notary fees are separate from agent fees and are paid by the buyer. In France, total "notary fees" (including taxes) typically represent 7–8% of the purchase price for existing property and 2–3% for new builds.

Virtual Viewings and International Purchases

Post-COVID, virtual tours and video viewings have become standard in international property markets. Many overseas agents now offer high-quality 3D walkthroughs, drone footage, and live video tours for remote buyers.

However, never commit to purchase an overseas property without an in-person visit or trusted on-the-ground representation.

A virtual tour cannot reveal:

• Actual condition, dampness, structural defects
• Neighbourhood atmosphere (noise, neighbours, proximity to building works)
• The true size and layout experienced in person
• The quality of the surrounding area and access

If you cannot travel to view a property in person, appoint a trusted representative — a friend, family member, independent buying agent, or professional surveyor in the local market — to view on your behalf and provide an honest assessment.

The Buying Agent

An alternative to dealing with a selling agent directly is to appoint a buying agent — a professional working exclusively for the buyer's interests. Buying agents typically:

• Search the market on the buyer's behalf, including off-market properties
• Negotiate on price and terms
• Manage due diligence and liaise with lawyers
• Charge a fee to the buyer (typically 1–3% of the purchase price, or a fixed fee)

Buying agents are well-established in the UK prime market. In international markets, the profession is less developed but growing in major expat destinations (France, Spain, Portugal, UAE).

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Property purchase processes and agent regulations vary significantly by country and change over time. Always take independent local legal advice before signing any property purchase agreement. This article is for information only.

How Global Investments can help

Global Investments helps internationally mobile clients navigate overseas property purchases — from identifying the right markets and agents to coordinating independent legal advice and currency conversion. We work with trusted local networks in the key international property markets and can ensure our clients approach any purchase with a clear understanding of the process, costs, and risks. Contact our team to discuss any overseas property transaction.