The issue of brokerage commissions in real estate sales and rentals has been a hot topic since the introduction of the buyer principle in 2015.
This blog post addresses the following topics:
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When can a real estate agent charge a commission?
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Who pays the agent or the agent's commission since the introduction of the buyer principle?
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When is the commission due?
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Amount of the agent's commission
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Negotiating commission with the agent
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Can a buyer or tenant avoid paying the agent's commission?
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When is the broker's commission claim invalid?
When can a real estate agent demand a commission?
A real estate agent may demand commission if a valid brokerage agreement has been concluded, the agent has performed brokerage services, or a purchase agreement or rental agreement has been concluded.
Who pays the broker or broker's commission since the introduction of the buyer principle? (Apartment)
Until June 2015, there were no legal requirements specifying who had to pay the broker's commission. Therefore, in most cases, the prospective tenant was responsible for paying the broker's commission when renting an apartment. Regulations have now been introduced to ensure that the landlord pays the broker's commission when renting an apartment. However, this has led to the problem that landlords are no longer seeking out real estate agents as often because they are not willing to pay the commission. As a result, they are looking for suitable tenants themselves, which is reducing the number of listings on real estate portals. In the federal states of Berlin, Brandenburg, Bremen, Hesse, and Hamburg, however, it is now usually only the buyer who pays the brokerage commission. In the other federal states, the brokerage commission is often split between the buyer and the seller.
When is the commission due?
Most real estate agents state in their terms and conditions that the commission is due upon conclusion of a rental or purchase agreement. As a rule, you can expect to pay approximately 7 to 14 days after signing the contract. However, there are also special cases. For example, the agent and seller may agree that the commission will be paid once the purchase price has been received in the account.
Amount of the brokerage commission (apartment)
State | Total brokerage commission | Seller's share | Buyer's share |
Baden-Württemberg | 7.14 | 3.57 | 3.57 |
Bavaria | 7.14 | 3.57 | 3.57 |
Berlin | 7.14 | 0.00 | 3.57 |
Brandenburg | 7.14 | 0 | 7.14 |
Bremen | 5.95 | 0 | 7.14 |
Hamburg | 6.25 | 0.00 | 5.95 |
Hesse | 5.95 | 0.00 | 6.25 |
Mecklenburg-Western Pomerania | 5.95 | 2.38 | 5.95 |
Lower Saxony | 7.14 | 3.57 | 3.57 |
North Rhine-Westphalia | 7.14 | 3.57 | 3.57 |
Rhineland-Palatinate | 7.14 | 3.57 | 3.57 |
Saar | 7.14 | 3.57 | 3.57 |
Saxony | 7.14 | 3.57 | 3.57 |
Saxony | 7.14 | 3.57 | 3.57 |
Schleswig-Holstein | 7.14 | 3.57 | 3.57 |
Thuringia | 7.14 | 3.57 | 3.57 |
Negotiate commission with broker
You can negotiate the commission with the broker if, for example, the property is easy to sell at a good price, the buyer is the only interested party, or the brokerage agreement is about to expire.
Can a buyer or tenant avoid paying the broker's commission?
Some people try to avoid paying the broker's commission by waiting until the brokerage agreement has expired. However, if the customer has viewed the property with the broker and the broker can prove this, the commission must still be paid even after the brokerage agreement has expired.
When is the broker's commission claim invalid?
If the real estate agent demands a commission even though the conditions (as described in point 1) are not met, the commission claim is invalid.
Source: https://www.immoverkauf24.de/immobilienmakler/maklerprovision/