Time and again there have been uncertainties and errors regarding the broker's commission (also called brokerage) .

Here are the most important facts about this topic:

• According to the German law (§ 652 (1) BGB), the brokerage may only be charged to the customer after a successful conclusion (lease / purchase contract) has been reached and the mediation activity of the broker has caused the conclusion.

• For the brokerage of a rental contract (residendial property, not commercial!) t he broker may demand a maximum  of two monthly rents  ("net", i.e. excluding heating and other additional costs) plus statutory VAT - this is prescribed by law. Since 01. 06. 2015, the brokerage commission must be paid by the contracting party who commissions the broker - the so-called "Ordering principle" according to § 2 (1a) WoVermRG.

• There are no precise regulations with regard to the mediation of a purchase/sale contract - in principle, the brokerage is freely negotiable : according to § 653 (2) BGB (German Civil Code )  the broker - in case of a successful mediation - is entitled to the "usual wage" . Depending on the region and market situation rates between 3% -7% of the purchase price  are regarded as "usual" or "customary"  in Germany . In practice, three models have developed:
  

1. In the case of a so-called "internal commission" it is agreed that the owner (seller) pays the entire commission.
   
2. The so-called "external commission" is borne solely by the interested party (buyer), and it must be displayed separately when the property is advertised in the media.
   
3. In most federal states in Germany (see table below), the so-called "mixed commission" is agreed, i.e. the commission is shared between the seller and the buyer. 
   

A new law (§§ 656a to 656d BGB), which comes into force on 23.12.2020, regulates that the party who has commissioned the broker is obliged to pay the commission. However, it can be agreed that a maximum of 50 percent of the total commission is transferred to the other contracting party. In short: if one person commissions the broker, a maximum of a 50:50 split is allowed.

If the broker is acting equally for buyer and seller on the basis of two brokerage contracts, he must split the brokerage fee equally to both sides - an exact 50:50 division is mandatory in this case.

For reasons of consumer protection, this new law is to be welcomed because, as a neutral broker, the estate agent can advise both, sellers and buyers, comprehensively and negotiate a purchase price that is appropriate for both sides. Both contracting parties thus benefit equally from the broker's services. In addition, the broker is liable to both parties for incorrect advice, which would not be the case with an order priciple with unilateral representation of interests.

Please keep in mind that good brokers do a lot for their brokerage - sometimes in vain, because

The broker's commission is only due if the broker's mediation leads to the successful conclusion of the contract!

Serious brokers do not demand any advance payments or lump-sum reimbursements, unless they are expressly agreed by contract.

As a maximum , the company "Aller Immobilien und Finanzierung" charges

• the legally prescribed brokerage commission (two monthly "net" rents) for the brokerage of rental contracts (residential property)
  

• the "customary" brokerage commission for the mediation of a purchase/sale contract (see table below), which, according to the new law, is shared equally between buyer and seller.
  

As the exact amount of the commission on purchase/sale is not prescribed by law, we are basically willing to negotiate, both with owners and interested parties.

Any negotiated discounts for the benefit of one contractual party will also be passed to the other contractual party - in accordance with the new legal situation.

Talk to us - our consultation is free of charge!