What real estate agents can and cannot do
Who is liable for incorrect information in the property listing?
The client and the real estate agent can be held liable for errors in the property listing. The seller must not provide the real estate agent with false information. If the real estate agent embellishes the property when talking to interested parties, they may be liable for damages because they have violated their duty to provide interested parties with accurate information.
Can a reservation fee be charged?
Without a clear written contractual agreement, a reservation fee may not be charged and is also not legally permissible. If a reservation fee is specified in the brokerage agreement, it must be offset against the real estate professional's fee upon successful completion of the sale. If the prospective buyer does not obtain the property even with the reservation, the real estate agent is required to refund the fee paid since 2023. Paying for a reservation is not a guarantee that the property will be purchased. In the end, it is still the owner who decides to whom they wish to sell.
How far can an exclusive contract go?
in 2020, the Federal Court of Justice ruled that the broker may only secure exclusive brokerage rights for a maximum of six months in an exclusive contract. The contract term may therefore not be longer or even unlimited. During the agreed reasonable period, the client may not sell their property through another real estate agent. If the client does not terminate the contract in time, it can be extended by a maximum of three months.
When must the commission or brokerage fee be paid?
The commission is only payable once the change of ownership has been successfully completed.
An agent may therefore not stipulate in the contract that their commission must also be paid if the sale fails. However, other costs may be charged. Travel and postage costs, which the broker must provide proof of, may be charged to the customer. This does not include the printing and shipping costs incurred for the property listing. The costs for analyzing the sale price may also not be passed on to the customer.
If a property is successfully sold, a brokerage fee is payable. The amount is not regulated by law. However, it is usually 7.14 percent of the purchase price. The costs can be shared between both parties up to a maximum of half, provided that they have been transferred. The brokerage fee is not to be confused with the commission.
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Notes
For reasons of readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
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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