ordering principle Change of law Purchase Brokerage law Rent brake New rentals Commission regulation

Ordering principle in brokerage law - NEW from 2015
Ordering principle in brokerage law - NEW from 2015

There is something new in the rental industry. How much sense and nonsense is behind it is a question of consideration, because ultimately both parties order.

In addition to the rent brake that applies to existing and new rentals, the ordering principle represents a reform of tenancy law. It is intended to be a concession for the tenant. A draft law has already been passed by the Federal Cabinet and now has to go through the Bundestag and Bundesrat. The law is expected to come into force in spring 2015.

In future, according to this principle, the landlord or owner, who hires the real estate agent, should also pay him. That means, if the landlord hires an agent to broker his apartment, he bears the costs. However, if a tenant instructs an agent to look for a specific apartment and he rents it, the tenant pays the commission.

However, the ordering principle only applies to leases for living spaces. The renting of office and commercial real estate still retains the old legal position “Commission regulation is region-dependent and freely negotiable”. The ordering principle does not apply to the purchase of residential and commercial property either.