Shared Commission

 

Since 23/12/2020, new rules apply to many real estate sales regarding agent commission. The law was updated in the German Civil Code (BGB) on the distribution of agent costs for mediating contracts for the sale of apartments and single-family houses (including those with auxiliary units).

 

Under this law, it is no longer possible to charge the full commission to the buyer if the agent was hired by the seller.

 

The cost-sharing of the agent is intended to ease the burden on buyers, especially in cities where house and apartment prices have risen significantly in recent years. The new law stipulates that the seller must cover at least half of the commission when selling their apartment or single-family home.

 

If an agent works for both parties under two separate contracts, they can only request the commission in equal parts from both parties. If the agent agreed to work free of charge for one party, they cannot claim any remuneration from the other party.

 

If only one party hires the agent, that party must pay the commission. Agreements to transfer the costs to the other party are only valid if the transferred costs do not exceed 50% of the total commission. Additionally, the client must prove they paid the commission before claiming the share from the other party.

 

This regulation applies only to the sale of single-family homes and apartments and only if the buyer acts as a consumer. If the buyer is acting in a commercial capacity, the cost distribution can still be agreed differently. Whether the agent is an entrepreneur is irrelevant. Even agents acting on a marginal basis are subject to the new rules.

 

For multi-family buildings, commercial properties, and plots of land, contractual freedom regarding agreed commission still applies.

 

 

Agent Commission for Renting Properties

For mediating rental apartments or houses, since 2015, the principle “whoever commissions pays” applies. Only the person who hires the agent has to pay the commission.