Real Estate Glossary

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Commission Agreement

Commission Agreement

Short definition

A commission agreement is a contract between the client and the real estate agent that regulates the amount, due date, and conditions of the agent's commission.

Who pays the broker commission for a rented apartment?

Since the introduction of the ordering principle (Bestellerprinzip), the person who commissioned the broker generally pays the commission. For rented apartments, this is usually the landlord. The tenant only pays if they commissioned the broker themselves.


When is the broker commission due?

The broker commission is usually only due once a rental or purchase contract has been successfully concluded. The prerequisite is that the successful mediation was causally brought about by the broker.

Practical Context

Commission regulations often cause uncertainty, especially regarding rented apartments. The legal requirements establish clear responsibilities, but in practice they often lead to follow-up questions.

Example
If the landlord commissions the broker, they bear the commission in full – even if several interested parties are involved.

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