The buyer principle - what you should know
Are you looking for a property to rent and wondering who actually bears the costs for the estate agent? Since 1 July 2023, the requirements for the “Bestellerprinzip” have changed – we give you an overview of what now applies.
What is the buyer principle?
The ordering principle is a regulation in the property market which states that the person who commissions the estate agent also pays the commission for their services. In the past, it was customary for the tenant to pay the estate agent’s commission in most cases. However, this was considered unfair and often led to high costs for those looking for a property. For this reason, the ordering principle was introduced in order to distribute the costs more fairly. Since then, it is no longer permitted to pass on the commission to the tenant. Now, the costs of the commission are generally borne by the person who commissioned the estate agent – usually the property owner or landlord.
When does the buyer principle apply?
Since July 1st 2023, the ordering principle has only applied to brokerage contracts relating to the brokerage of rental flats. This means that if you are looking for a flat, as a tenant you will generally no longer have to pay commission. The ordering principle does not apply to the letting of offices or business premises. This principle also generally does not apply to the purchase of property.
In this case, landlords pay the commission
In accordance with the ordering principle, landlords must pay the commission for the estate agent if they are the initial client. This means that the landlord commissions the estate agent to find a suitable tenant for their flat. In this case, the landlord bears the costs for the estate agent’s services. Tenants therefore do not have to pay the usual commission. The ordering principle protects tenants from additional financial burdens and therefore makes it much easier to find a flat.
Are there cases in which tenants pay?
In accordance with the ordering principle, tenants must pay the commission for the estate agent if they are the initial client. This is the case if a tenant commissions an estate agent to find a suitable property for them that is not yet known to the estate agent. In such cases, the tenant bears the costs of the estate agent. This is not the case if the estate agent finds a property that he already has in his portfolio. The ordering principle therefore offers tenants the opportunity to actively organise the search process.
The partners at your side
The new regulations on the “Bestellerprinzip” are a positive change that offers you as a tenant more financial relief and freedom when looking for a property. If you have any further questions or need professional support in your search for your dream property, please do not hesitate to contact our team at BAMBERGER IMMOBILIEN. Our experienced real estate agents will be happy to provide you with the best possible advice and fulfil your wishes. Contact us and let’s make your property dreams come true together!