Maklerprovision

What is Maklerprovision (estate agent commission)?

Maklerprovision (also called Maklercourtage or Maklergebühr) is the German term for the estate agent commission, the fee an agent earns for successfully brokering a property. In English you would call it the broker fee or agent commission. It only becomes payable once a purchase or rental contract is actually concluded. No deal, no payment.

Since 23 December 2020, a new rule applies to the purchase of apartments and single-family homes in Germany: the Maklerprovision must be split at least equally between buyer and seller. Before that, the whole commission could be passed on to the buyer. The change mainly protects private buyers from carrying the full cost alone.

For the rental market, the so-called Bestellerprinzip (whoever-orders-pays principle) has applied since 1 June 2015. Here the party that hired the agent pays, which in practice is almost always the landlord. The commission for rentals is capped at two months' net cold rent (Nettokaltmiete) plus VAT.

Calculating the Maklerprovision: an example

The commission is worked out as a percentage of the purchase price. In most Bundesländer the customary total commission is 7.14% (including 19% VAT).

Example for a purchase price of €400,000:

• Total commission: 7.14% of €400,000 = €28,560
• Buyer's share (50%): 3.57% = €14,280
• Seller's share (50%): 3.57% = €14,280

Some Bundesländer use lower rates. In Bremen and Mecklenburg-Vorpommern the total commission is often 5.95%, and in Hamburg 6.25%. The commission is freely negotiable, though, and there is no legal upper limit.

Good to know

• Text form required: Since 2020, the agency agreement for the purchase of residential property must be concluded at least in text form (Textform), for example by email. A verbal agreement is no longer enough.
• Residential property only: The equal split applies only to the purchase of apartments and single-family homes by consumers. When buying commercial property or apartment buildings (Mehrfamilienhäuser), the commission can still be allocated freely between the parties.
• Negotiating the commission: Negotiation pays off especially for higher-priced properties or when the agent represents only one side. A lower percentage is always possible.
• Tax deductibility: For buyers acquiring a property as an investment, the Maklerprovision is deductible as acquisition-related costs (Anschaffungsnebenkosten). Owner-occupiers cannot deduct the commission from their taxes.

Legal basis

The Maklerprovision for property purchases is governed by sections 656a to 656d of the Bürgerliches Gesetzbuch (BGB, the German Civil Code). These sections were introduced on 23 December 2020 by the "Gesetz über die Verteilung der Maklerkosten bei der Vermittlung von Kaufverträgen über Wohnungen und Einfamilienhäuser" (Act on the Allocation of Brokerage Costs for the Sale of Apartments and Single-Family Homes). Section 656a requires text form, section 656b limits the scope to consumers, section 656c governs the agent's dual representation, and section 656d covers the cost split when only one party hires the agent. The Bestellerprinzip for rental flats is based on section 2(1a) of the Wohnungsvermittlungsgesetz (WoVermRG, the Housing Brokerage Act).