Information on the new real estate agent commission regulation (Real Estate Agent Commission Act from 23.12. 2020) for real estate sellers
The new regulation
From 23.12. 2020, the real estate agent’s commission for the sale of single-family houses and condominiums will either be divided equally between the buyer and the seller (double commission rule) or borne 100% by the seller (internal commission rule). This new regulation does not apply to building plots, apartment buildings and commercial properties.
In practice, nothing has changed in the sale of building plots, apartment buildings and commercial properties. Here, as before, the buyer usually pays the entire commission. Of course, the seller is free to voluntarily assume the commission or portions thereof.
What is new for sellers, what is new for buyers?
New for sellers:
Upon successful sale of the single-family house or condominium through our estate agent’s services, he or she will pay at least half of the total real estate agent’s commission, usually 3.57% of the purchase price, since 23.12.2020.
For real estate buyers, on the other hand, the real estate agent’s commission is reduced; he or she only pays a maximum of half, usually also 3.57% of the purchase price. For a sales price of €500,000, for example, this is €17,850 for both parties.
The seller is held more accountable, but also benefits from advantages
If the seller reaches into his pocket and shares in the real estate agent’s commission, our professional estate agent’s services are also geared towards acting in the interests of the seller, i.e. as real estate agents we are obliged to achieve the highest possible sales proceeds for the owner and a safe and stress-free course of the entire process.
The seller’s participation in the real estate agent’s commission brings this aspect more into focus. When the seller takes full commission, we predominantly represent his interests. This is noticeable in price negotiations and can be financially rewarding. The seller saves valuable time and increases the chance of higher sales proceeds through our professional support.
The estate agent as mediator In the case of double commission (or commission sharing), however, we also commit ourselves to the buyer, which legally forces us as estate agents into a neutral mediating role between the two parties. However, our experience shows that a proper, non-emotional mediator role in negotiation talks can be supportive and purposeful for a successful conclusion of a contract and positively influences decisions and closings.
Do you have further questions?
Consequences of the new Real Estate Agent Commission Act for sellers and buyers
The new real estate agent commission regulation of 23.12.2020 (double commission regulation and optional internal commission regulation) only applies to simple residential properties (condominiums and single-family houses). For the sale of land, apartment buildings and commercial properties, we can still work commission-free for the seller.
For sellers, the double commission regulation and, above all, the internal commission regulation of the new Real Estate Agent Commission Act of 23.12.2020 has the advantage that we, as real estate agents, undertake to act explicitly in your interest as well, i.e. to achieve the highest possible sales proceeds for you and a safe and stress-free course of the entire process.
This also applies to negotiation talks between the parties. As a seller, you save valuable time and increase the chance of a higher sale proceeds through our professional support.
Under the dual commission arrangement, we represent the seller and buyer sides equally, i.e. we act as a neutral intermediary between the parties and cannot exert any influence on one side or the other.
If the buyer alone pays the commission, e.g. in the case of a plot of land or in the case of an already existing search order subject to commission, we are required to represent the interests of the buyer first and foremost.