Everything you need to know about the new Real Estate Agent Act
Since the introduction of the new Real Estate Agent Act, uniform regulations have applied in Germany regarding the payment of agent's commission for property sales. The aim of the change in the law is to create more transparency and fairness in the property market. For owners who want to sell their property, this brings with it a number of changes that need to be taken into account. At the same time, it is clear that a professional estate agent continues to play a decisive role in making the sales process successful and stress-free, despite the clear requirements.
The most important provisions of the new Brokerage Act
Since December 2020, the Real Estate Agent Act has regulated how commission is split when selling residential property. The key points are:
- Division of commission: The estate agent's commission must be split equally between the buyer and seller. This is to prevent one party from bearing the entire costs.
- Written form: The brokerage agreement must be concluded in writing. This can be in the form of a traditional document or electronically, for example by e-mail.
- Clarity in payment: Sellers can only demand payment of the commission from buyers if they themselves also pay a share. This ensures that both parties are equally obliged to bear the costs.
What does this mean for sellers?
For sellers, the new regulation means that they have to pay half of the estate agent's commission. These costs should be taken into account when calculating the sales proceeds. At the same time, sellers can be sure that buyers will also pay their share, which makes the sales process fairer.
The advantages of a property professional
Despite the new legal regulations, the support of a professional broker remains invaluable. An experienced broker offers numerous advantages:
- Market knowledge: Estate agents know the local market situation and can determine the optimum asking price to facilitate a quick and successful sale.
- Time saving: From creating the exposé to organising viewings and negotiating with interested parties - an estate agent takes on all the time-consuming tasks.
- Legal certainty: A broker ensures that all legal requirements are met and minimises the risk of errors or disputes.
- Negotiating skills: Professional estate agents are experienced in negotiations and can often achieve better sales prices than private individuals.
Conclusion: The new Real Estate Agent Act brings more transparency and fairness to the property market and protects both buyers and sellers. For owners who want to sell their property, working with an experienced estate agent remains a sensible investment. A property professional not only ensures a smooth sales process, but also maximises the chances of success and the proceeds achieved - a win-win situation for everyone involved.
1st division of commission: The new standard regulation
The new Real Estate Agent Act has standardised commission regulations. As a rule, sellers and buyers now share the estate agent's commission for residential property. This equal distribution ensures greater fairness and transparency. In exceptional cases, the seller can pay the commission in full. Important: The agreements must always be recorded in writing in the estate agent contract.
2. amount of the broker's commission: quality is decisive
The broker's commission is determined individually in the contract and depends on the broker's scope of services. A quality estate agent offers:
- Professional property valuation
- Innovative marketing techniques such as 360-degree tours
- Creation of high-quality exposés
- Sales promotion measures such as home staging
These services help to achieve the best possible sales price for your property.
3. written brokerage contracts: Transparency and security
Written brokerage contracts have been mandatory since the new law came into force. All of the estate agent's services and the exact amount of the commission are set out in binding form. This gives you as the seller full control and security.
4. exceptions to the new regulation
The Real Estate Agent Act applies exclusively to residential property. Commercial property, building plots and logistics areas are excluded. In these cases, the commission regulations can still be negotiated individually.
5 Why a professional broker is important right now
An experienced estate agent not only offers expertise, but also knows the current market conditions. They also help to avoid legal pitfalls, for example when it comes to complying with energy performance certificate obligations. Through targeted marketing strategies, the estate agent will ensure that your property achieves the optimum sales price.
Tip: Let a local quality estate agent advise you. With an expert at your side, you will sell faster, more securely and at a better price.
