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"Bestellerprinzip" - What you should bear in mind

The so-called "Bestellerprinzip". roughly translated as the "ordering party principle", is a familiar term in the real estate industry. But it also raises questions time and again, whether it's about buying a property or renting one. The fact is that since a legislative decision in May 2020, the "Bestellerprinzip" is no longer applicable to the purchase of real estate. However, it still exists in the area of residential brokerage for rent. To give you a comprehensive overview of the topic, we explain the most important questions about the "Bestellerprinzip" below. You can find out how you can benefit from the support of an estate agent here.

What does the "Bestellerprinzip" mean?

The "Bestellerprinzip" refers to a regulation on the payment of the real estate agent's commission according to which the person who commissions the service has to pay the real estate agent fees.

Where does the "Bestellerprinzip" apply?

The "Bestellerprinzip" only applies to the area of rental properties. Due to a change in the law, it no longer applies to house sales as of the end of 2020. Since then, the buyer and seller of a property share the agent's commission equally.

Since when has the "Bestellerprinzip" been in place?

The "Bestellerprinzip" was one of the goals that the grand coalition included in its coalition agreement of 2013. The aim of the law was to prevent landlords from passing on the costs of real estate brokerage to tenants, thus contributing to an easing of the tight residential property market. The law came into force on 1 June 2015.

Where is the "Bestellerprinzip" regulated?

The legal basis for the "Bestellerprinzip" is found in sections 652 to 655 of the German Civil Code (BGB). This regulates the accrual of the real estate agent's wage claim, a possible forfeiture of this wage claim and the amount of the real estate agent's commission.

"Bestellerprinzip": Who pays the estate agent's commission?

In May 2020, the SPD and CDU/CSU agreed on a reform of the brokerage commission. Since 23 December 2020, the buyer and seller of a property have shared the costs of the real estate agent equally. With this decision, the federal government of CDU/CSU and SPD rejected the "Bestellerprinzip" for house sales. We have summarised all the details and changes associated with this reform for you in our explanations of the new law on estate agent commission.

Does the "Bestellerprinzip" also apply in Austria?

The question of who bears the costs of an estate agent is regulated in Austria in a similar way as in Germany. The "Bestellerprinzip" applies when renting a property, but not when buying or selling. The law came into force in July 2023.

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