Ordering party principle for the brokerage of a rental property

Bestellerprinzip – In order to protect prospective tenants from the additional burden of paying the broker’s commission, the Bestellerprinzip applies. This means that whoever commissions an estate agent with the procurement of a prospective tenant for a rented flat must pay the agent’s commission. If the broker violates the principle by charging fees for a viewing of a flat, he is acting irregularly and must expect a fine. The only exception is the commissioning of an estate agent by the tenant, which must be given in writing.

Brokerage principle at a glance: Protecting tenants from the brokerage fee

• Landlord as principal must pay the brokerage commission
• Brokers used to be allowed to charge tenants two months’ rent as commission
• Is intended to protect tenants from the additional burden in addition to the tight housing situation
• In case of violation, the broker is punished with a fine
• Exception only if the tenant instructs the broker in writing

Back to the wiki: Real Estate