Commission only on success
Entitlement to brokerage commission arises only if the main contract – for instance the purchase contract – is actually concluded as a result of the broker's introduction or brokerage (§ 652 BGB – Bürgerliches Gesetzbuch, German Civil Code). Efforts alone do not give rise to a commission. The amount and due date of the commission are agreed in the brokerage agreement.
Text form for the purchase of flats and houses
A brokerage agreement whose subject matter is the introduction or brokerage of a purchase contract for a flat or a single-family house requires text form (§ 656a BGB – Bürgerliches Gesetzbuch, German Civil Code). An e-mail is sufficient for this; a handwritten signature is not required. Oral arrangements are not sufficient in these cases.
Commission sharing with consumers
If the buyer of a flat or a single-family house is a consumer, special rules apply (§§ 656b to 656d BGB – Bürgerliches Gesetzbuch, German Civil Code). If the broker is engaged by both parties, the broker may only demand a commission of the same amount from each of them (§ 656c BGB – Bürgerliches Gesetzbuch, German Civil Code).
If only one party has engaged the broker, that party may contractually oblige the other party to bear at most half of the commission. This half becomes due only once the engaging party proves that it has paid its share (§ 656d BGB – Bürgerliches Gesetzbuch, German Civil Code). These special rules do not apply to commercial property, multi-family houses and plots without a residential building.
Consumers' right of withdrawal
If a brokerage agreement with a consumer is concluded off business premises or exclusively by means of distance communication such as e-mail or telephone, the consumer has a statutory right of withdrawal. We provide information on this right when the contract is concluded. If you wish us to begin work before the withdrawal period has expired, we will obtain your express consent to this.
What a brokerage agreement should cover
A good brokerage agreement is short, comprehensible and complete. It should contain at least the following points:
- the property and the type of activity (introduction, brokerage or both)
- amount of the commission and the time at which it falls due
- term and termination options
- in the case of a sole agency agreement: the mutual obligations
- information on any right of withdrawal
Frequently asked questions
How high is your commission?
The commission is agreed individually in the brokerage agreement and depends on the property and the mandate. We will state it to you in writing before the contract is concluded.
Do I have to pay if the purchase does not go through?
No. A commission arises only if the main contract is validly concluded as a result of our activity.
Does the equal split also apply to a multi-family house?
No. The rules of §§ 656a to 656d BGB (Bürgerliches Gesetzbuch, German Civil Code) concern only flats and single-family houses, and the sharing rules apply only where the buyer is a consumer.
Is an e-mail sufficient as a brokerage agreement?
Yes, an e-mail from which the contracting parties and the content of the agreement are apparent satisfies the prescribed text form.