What changes with the new real estate agent law?

The new real estate agent law is here. Essentially, it contains a now uniform regulation for all of Germany on how the real estate agent's commission is to be split between seller and buyer. Both will henceforth pay half of the commission each.

In some regions of Germany, the equal sharing of the commission was already common practice before the new real estate agent law, but especially in major cities like Cologne, Hamburg, and Berlin, only the buyers typically paid the commission. This so-called "external commission" is now abolished by the new law, at least for residential properties. The aim is to prevent real estate agent costs from being unilaterally passed on to the buyer. The new law does not affect the sale of apartment buildings, commercial properties, building plots, logistics facilities, or office space. The new regulation applies only to the sale of an apartment or a single-family home to owner-occupiers.

Internal commission still permitted

As with most rules, the new real estate agent law also has an exception. The only permissible exception is the continued agreement of an internal commission, where the agent's fees are fully borne by the seller. In this case, the agent is completely committed to their client. This model can offer advantages for sellers, as the agent is no longer bound by their role as a neutral intermediary. This allows them, for example, to focus entirely on acting in the client's best interests during purchase price negotiations.

Written documentation is mandatory

Verbal agreements are now a thing of the past and no longer legally valid. The new law now mandates that all agreed-upon brokerage services be documented in writing. Agreements must be recorded in written form. The new law does not include regulations regarding the specific amount of the broker's commission. This will continue to be freely negotiated and stipulated in the brokerage contract. This means that the future commission will depend on the broker's services. This offers the advantage of transparency for all parties involved – it allows the buyer to verify the commission agreed upon by the seller and broker from the outset.

Why is selling with a real estate agent worthwhile right now?

Even though the new legislation might tempt some sellers to try selling on their own, this is still not a good idea. In all phases of selling real estate, long-standing market knowledge and experience are the decisive factors for success. Selling independently, without professional guidance, is firstly only possible with a very high investment of time and effort, and secondly, it carries a much higher risk that the desired sale will either not be achieved at all, or that the achieved selling price will fall far short of market potential.

Are you looking for someone to professionally support you in selling your property? Contact us! We would be happy to advise you.

Didn't find what you were looking for here? Then read on:

https://ivd.net/fachthemen/provisionsteilung/

https://www.bvfi.de/bundestag-beschliesst-das-neue-maklergesetz

https://www.die-wirtschaftszeitung.de/aktuelles/neues-maklergesetz-sorgt-fuer-diskussionen/

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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