If a seller decides NOT to go through with the sale… can the real estate agency still charge their commission?

According to a key ruling from Spain’s Supreme Court, the answer is:
No—not always.

Let’s break this down clearly, calmly, and with just enough humour to survive the legal jargon.

The Supreme Court Case: What Actually Happened

A real estate agency introduced a ready and willing buyer to a homeowner.
Everything seemed on track… until the seller realized the financials didn’t add up.

Between taxes, fees, and existing charges on the home, the seller would end up losing money.
So, perfectly reasonably, they said:

“Actually… I’ve changed my mind.”

The seller cancelled the contract with the agency through a burofax (Spain’s favourite way of officially saying “I’m out”).

The agency then sued the homeowner, demanding their commission anyway—claiming they had already presented a buyer.

The case reached the Supreme Court.

The Supreme Court’s Answer: NO Commission If There Was No Bad Faith

Spain’s Supreme Court ruled that the agency had NO right to claim the commission because:

🟩 1. The seller acted in good faith

They didn’t try to “steal the buyer” or bypass the agency.

They simply realised the sale made no financial sense.

🟩 2. The seller is a consumer and is protected by consumer law

This is critical in Spain:
If the seller is a consumer (not a business), consumer protection rules apply.

🟩 3. The agency didn’t inform the seller of their right to withdraw

Under consumer law, the seller had the right to desist (withdraw) from the contract within 14 days — no explanation needed, no penalty.

The agency failed to inform them verbally and in writing, which is legally required.

Because of that, the seller could withdraw even after those 14 days.

🟩 4. The agency provided services BEFORE the withdrawal period ended

Meaning: the seller was still fully within their right to stop everything.

Why This Ruling Matters (Especially in Tenerife)

The Canary Islands have a very active property market with:

• foreign sellers
• foreign buyers
• contracts often signed at home, not in an office
• multilingual agents
• pressure to sign quickly

This ruling protects everyday homeowners from:

• aggressive signing tactics
• unclear contracts
• commissions demanded without a completed sale

In short:
An agent cannot charge commission simply because they brought a buyer—if the seller validly withdraws in good faith.

Your Right to Withdraw: The 14-Day Rule

According to Spain’s consumer protection laws:

✔ If you sign a sales mandate (encargo de venta) at home

You have 14 days to withdraw without any penalty or justification.

✔ The agency MUST inform you of this right

And provide:

• a written document to exercise the withdrawal
• clear and understandable information

✔ If the agency fails to inform you

The withdrawal period increases to:

🟨 12 months

(Yes, one whole year!)

This is exactly what happened in the Supreme Court case.

How Real Estate Agency Fees Actually Work

Typical commissions in Spain (and Tenerife):

✔ 3%–5% standard

✔ Up to 6% in coastal or luxury areas

✔ Franchise models:

• 3% from the seller
• 3% from the buyer
  = 6% total

Payment is usually split:

• Part at the arras deposit
• The rest at the notary when the sale becomes official

How to Negotiate Agency Fees Safely

Spanish experts recommend:

✔ 1. Define clearly whether the agency can charge the buyer

Some areas split the fee 50/50.

✔ 2. Agree on the exact percentage in writing

No assumptions. No surprises.

✔ 3. Specify EXACTLY what services the agency will perform

Photography, visits, contract drafting, marketing, staging, etc.

✔ 4. Review the agency’s marketing plan

Will they use portals? Their own website? Social media? Videos?

✔ 5. Put EVERYTHING in a written contract

Including when the commission is earned.
(Hint: normally ONLY when the sale is completed at the notary.)

What This Means for Sellers in Tenerife

If you’re selling your home in Tenerife and change your mind — AND:

• you act in good faith
• you don’t try to bypass the agency
• and the agency didn’t clearly inform you about your withdrawal rights

→ They cannot force you to pay a commission.

The Supreme Court ruling makes this crystal clear.

Final Thoughts

This ruling protects consumers from unfair commission claims and reinforces the importance of transparent contracts and honest real estate practices.

If you’re selling property in Tenerife, make sure:

• contract terms are clear
• you understand your rights
• the agency informs you properly
• everything is in writing

And if in doubt, always get a second opinion before signing.

Disclaimer

This article is for informational purposes only and does not replace legal or professional advice. For real estate contracts in Tenerife, consult a qualified lawyer or property expert.

This article is based on official information from Spain’s Supreme Court and reporting by Idealista News.

The post Seller Withdrawal: No Commission, Rules Supreme Court first appeared on Adeje.com.