
The new real estate brokerage law: what's changing?
In some regions, the equal division of commission was already common practice, but in major cities such as Cologne, Hamburg, and Berlin, it was usually only the buyers who paid. The new law now completely abolishes this so-called external commission, at least for residential properties. this is intended to prevent brokerage fees from being passed on to the buyer alone. The primary aim of the legislation is to reduce the ancillary costs for buyers of residential properties for their own use. The trade in rental properties, commercial real estate, building plots, logistics or office space is not affected by the new brokerage law. The new regulation only applies to the sale of an apartment or a single-family home to owner-occupiers.
Internal commission
The only permissible exception to a parity model will continue to be an internal commission, whereby the broker's fees are paid in full by the seller. In this case, the broker is fully committed to his client. This model may well be advantageous for sellers in certain circumstances, as the broker is no longer bound by his role as a neutral intermediary. This means that he can, for example, work unreservedly in the interests of his client during purchase price negotiations.
What else does the law say?
The new law also makes it mandatory to document the agreed brokerage services in writing in all cases. Verbal agreements between real estate sellers and brokers are therefore no longer valid. The agreements made must be recorded in writing. The new law does not contain any provisions on the specific amount of the brokerage commission. This will therefore continue to be freely negotiated and set out in the brokerage contract. This has the advantage of transparency for all parties involved, as it allows the buyer to verify the commission negotiated between the seller and the broker from the outset.
Why is it worth selling with a broker right now?
It may be that the new legislation will tempt some sellers to sell on their own and forego the services of a broker. However, this is still not a good idea, as long-standing market knowledge and experience are the decisive factors for success in all phases of real estate sales. The added value of a real estate professional who supports the seller with their experience and expertise from the property valuation to the conclusion of the purchase agreement will remain unchallenged in the future. Selling on your own, without professional support, is not only possible with a very high investment of time and effort, but also involves a much higher risk that the desired sale will either not happen at all or that the sale price achieved will fall far short of the market potential.
Are you looking for someone to provide professional support in selling your property? Contact us! We will be happy to advise you.
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Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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