Real estate sales | Lukinski

Broker real estate privately: Buyer, seller and purchase contract – procedure

L_kinski — Sun, 06 Dec 2020 18:14:14 +0000

Broker property privately – You know 1) a property that needs to be sold and 2) a buyer? Now you have the idea that you could broker the property and collect the broker’s commission. But is that possible? The sale of a property follows a fixed procedure, from the property exposé to the sales phase to the viewing, negotiations, notary appointment, purchase contract and paying the bills, the notary, estate agent and land transfer tax. Read more about all 3 phases here: Selling Property. The fact is, even if you are not a real estate agent, you may take a commission for brokering a property. The important thing is the motto: Only those who write, stay. Therefore, a look at the process of mediation and the brokerage contract, which you must also have as a private person to be entitled to commission.

Procedure: Real estate brokerage (private) of house & apartment

You have the chance to broker a property, but you are not a real estate agent? With the one-time mediation of a property this is no problem at all.

PS: This article is an overview. Please inform yourself in detail about specific cases.

Any responsible citizen is allowed to make contracts, even when brokering a property. There are a few limits that make you a commercial trader, which I have written about many times on the blog. To put it quickly: privately you are allowed to broker a maximum of 3 properties in 5 years, even without a trade licence. The latest information on the law can also be found here: Commercial real estate trade (external).

Basically, the motto described in the introduction applies:

Only those who write remain

So, as always in the business world, put everything in writing.

Procedure and checklist: Seller, buyer, purchase contract

This article is meant to give you a quick, short checklist.

Internal commission and external commission explained

When selling a property, there are two types of brokerage commission. If the seller pays the broker’s costs, this is called “internal commission”. If the buyer of the property pays, it is called “external commission”.

Internal commission: Seller
Outside commission: Buyer

Your client is, as a rule, either the seller or the buyer.

Brokerage agreement for brokerage commission: sample (free of charge)

Now the brokerage contract comes into play. In order to be entitled to a brokerage commission later on, you must have a written proof, the brokerage contract.

You can get good and free sample templates from the various chambers of industry and commerce (IHK). For example, here:

Template (IHK Munich)
Template DOC – IHK Leipzig

It must be clear from the agreement or the contract that you, as the agent, have offered/provided the property. A corresponding broker’s commission will then be due.

How much is the broker’s commission?

Broker commission for private purchase – Many things are extremely regulated in Germany, but it was different with the broker commission. Who has to bear the costs for the broker, was clear in most cases, the buyer of a property. In the new year changes a lot, because for the first time, the distribution of the brokerage commission between buyer and seller of a property, is clearly regulated by the legislator. What is in the new law on the broker’s commission? Here is a quick insight:

Broker commission for private purchase

A whole 3, 5, 7 %, just for mediation?!

In the link to the broker’s commission you have already learned something about the amount of the commission. The more expensive the property, the lower the rate. For properties over 10 million, the rate is also less than 3%. So that you really get a commission in the end, stay fair from the beginning.

Agents get 3%, 5% or 7% because they do a lot of tasks, in the whole process of selling real estate.

As a professional partner, you move on. You are present during the whole process, at least in the CC of the correspondence. It is also about bringing the interests of the seller / buyer together. In addition, I have to advertise the property – only “interest” does not ensure that the potential buyer will actually buy. If buyer and seller agree, they arrange the rest, around notary date, which notary, purchase contract, etc. themselves. Brokers are still in the CC.

The last appointment is then the certification, the “handshake” afterwards. Then I have earned money and can present the bill.

Purchase contract: Passus object mediation

Broadly, should be in the bill of sale,

Property brokerage came through broker XY, commission amounts to XY, is due with effectiveness of the contract. If CT effective, commission due automatically.

Conclusion: Mediation, Contract, Coutage

With a private mediation, be always clear, as an agent (broker), you are always the weakest link in the chain. You make “only an exposé” and then get “so much money”. Therefore, it is all the more important that you hold everything in writing before the owner announcement and viewing, also in the purchase contract.

Here again the links to the free sample templates of the various Chambers of Industry and Commerce (IHK).

Template (IHK Munich)
Template DOC – IHK Leipzig

Roof terrace – Building, greening & in English

Laura — Fri, 21 Feb 2020 12:00:07 +0000

Roof Terrace – The roof terrace is the usable outdoor area of an attic or the supporting flat roof of a garage. Ideas for your outdoor space: outdoor living. The most important thing when building or extending is the construction. The load-bearing capacity must be large enough and structural regulations such as the securing by a railing must be implemented. This can be installed either purely for safety or directly as a screen. It is also popular to equip the roof terrace with some plants or to green it completely. In English, roof terrace means “roof terrace”.

Roof terrace at a glance

Usable outdoor area of one attic
Railing is a building regulation
Green roof terrace is popular
English – “roof terrace”

Back to the wiki: Real Estate

Sloping roof – furniture, matching color effect & in English

Laura — Mon, 17 Feb 2020 12:00:08 +0000

Roof slope – Roof slopes are sloping side walls occurring in the attic. More on Lukinski.com. The usable area limited by the roof slopes is only partially included in the calculation of the living space. Rooms with roof slopes are often used as storage space. In the case of living rooms with sloping ceilings, questions often arise as to how to make such a room appear visually larger with targeted colour effects, how to find the right curtains and the right furniture. In the attic not all side walls must necessarily be roof slopes. It is also possible that only some of the side walls are sloping. In English, roof sloping means “roof sloping”.

Roof slope at a glance

Sloping side walls
Limited usable area is only partially included in the calculation of living space
Color effect for visually larger appearance
In English: “roof sloping”

Here you can see the construction of a smart wardrobe solution for a room with a sloping roof.

Back to the wiki: Real Estate

Attic – Apartment, Insulation & Penthouse

Laura — Fri, 14 Feb 2020 12:00:03 +0000

Attic – By definition, the attic refers to the top floor of a building that is habitable. Visit back to overview. The attic of a house often has sloping ceilings. Depending on the ceiling height, part of their area is included in the calculation of the living space. The difference between this and the attic is that the attic is habitable, not largely used for storage, and also in any case there are stairs and not a fold-out ladder. From a certain size, the attic is then also considered a regular full floor and then also has good insulation in the vast majority of cases. It can therefore easily be converted into a bedroom or even an entire attic apartment and furnished according to your ideas just like a normal floor. The English synonym for attic “penthouse” is also often used in German.

Top floor at a glance

The uppermost habitable floor of a building
Sloping ceilings reduce living space
Furnish as bedroom or whole attic apartment
English – “penthouse”

Here you can have a look at how the development of an attic runs off.

Back to the wiki: Real Estate