If the agent sells the property what is the SVAM fee of 2% for? What is the mortgage settlement fee of 1% for as there was no early repayment penalty clause in the contract?
Real estate agents in China work for both parties (buyer and seller) and charge 1% from each party during property transactions. Thus he is not the sole agent of you. Unless you come to Shanghai yourself, SVAM will work on behalf of you to negotiate with buyer, contact Management Company for show the property, sign the contract, pay the tax, notarize the sales contract notarized, collect payment from buyer and register at property exchange center for transferring ownership. Usually 2 month period is needed for a regular transaction; SVAM will need to spend a lot of resources on one particular case, 2% we charge is very reasonable based on the work load. For those investors who currently have mortgage with bank, SVAM will need to arrange the mortgage pay off at bank before the property transaction can take place. The 1% on the sales amount we charge is the arrangement costs for settling loan plus interests pay back.
