The commission – premium for the real estate agent
The commission is a premium, which is usually paid for a conclusion of a sale or the mediation of business opportunities. In the real estate business context, the commission is a premium for the real estate agent if he enables a rent or a sale.
The amount of the commission fee varies from case to case. When arranging a lease, the commission is limited by the law and must not exceed the sum of two monthly net rents plus VAT. When arranging a sale, the real estate agent receives a commission which refers in most cases to the amount of purchase price.
The maximum amount of commission varies from state to state. The commission is the lowest in Saarland, Bavaria and Baden-Württemberg with 3.57 percent. A real estate agent may charge up to 7.14 percent of the purchase price plus VAT in Berlin and Brandenburg. Therefore those two states are “the leader” in Germany.
It is not legally defined who pays the commission fee. In most cases the commission is paid by the tenant or either the buyer. Currently they are discussing to introduce a so-called lawfully ordering principle. That would be, that the person who hired the real estate agent has to pay him. Whether this regulation will enter into force, is still unclear.
Whether Prior to an Acquisition...
Even ahead of an acquisition, the Accentro Real Estate Encyclopaedia offers interesting facts and decision guidance: We will coach you through the first steps on your path to homeownership. For instance, it provides information on the process flow of a condominium purchase. It will also tell you what sort of documents you need in order to buy property, and where to obtain them.
... or after – Our Real Estate Encyclopaedia Provides the Answers You Need
Once you have bought a property, you may wonder who is going to manage your condo and how. After all, caretaking your property is one of your main obligations as a condominium owner. In addition to numerous tips and suggestions, you will find answers here to many questions involving the property management subject, such as: What does “individual freehold ownership” mean? What exactly do “condominium regulations” govern? And what does the term “condominium fee” imply? In addition, we elaborate subtle differences between terms such as “real estate management” and “corporate real estate management.”
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