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accentro-hitzigallee
05 12 2013
Principal concept – the real estate agent is paid by the principal

In the "Package for affordable building and living" the coalition not only includes the much-debated rental control brake, but also the so-called principal concept: real estate agents should from now on be paid by the person who commissioned them. This can be either the landlord of an apartment as well as the potential tenants. The principal concept is planned only for rentals - for real estate purchases the legislator leaves the decision open, which has to pay the broker’s commission. By the way: for purchasing a condominium with Accentro there will be no broker’s commission.

Currently, only the amount of the brokerage commission is set by law

At the moment, the law does not specify who has to pay the brokerage fee at apartment rentals. In general, the commission falls at the expense of the tenant in the large cities. In cities, where the supply exceeds the demand, the landlord usually pays the costs. In addition, there is obviously a possibility that the prospective tenant and the landlord share the costs for the real estate agent. Regarding the amount of the commission the law clears the limit: The commission cannot exceed two months net rent plus VAT.

Principal concept: real estate agents criticize plans of the coalition

The plan of the coalition regarding the principal concept evokes mixed reactions. The prospective tenants are likely to be pleased with this regulation: According to the newspaper real estate experts assume that the introduction of the principal concept will save prospective tenant an annual cost of up to 1.2 billion euros. The real estate newspaper reports on November the 14th about the reactions of the real estate industry. While some of the real estate experts consider the principal concept for brokers critical, others welcome the plans of the coalition. In the industrial segment there has been since a long time the principal concept – real estate agent get paid naturally either from the landlords or from the sellers.