Are you planning to buy or sell real estate through an estate agent or do you have legal questions about the drafting or termination of your brokerage contract? Then contact our experienced law firm. As dedicated & assertive lawyers, we have many years of experience in the field of real estate agent law and can provide you with legal advice. If the worst comes to the worst, we will also represent you in court throughout Germany.
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Anyone who turns to an estate agent when buying or selling a property concludes a brokerage contract with him. No particular form is required for the conclusion of this contract. The contract is concluded when a prospective buyer accepts the broker’s proposal to be shown one or more properties by him. If the client has a right of withdrawal, the estate agent must inform his client of this right of withdrawal. If he does not do so, the client may be able to revoke the brokerage contract even after the purchase agreement has been concluded.
If the brokerage involves a property that is to be rented out, special provisions apply. Here, § 2 of the Housing Mediation Act stipulates that the broker can only assert his claim to remuneration if a tenancy agreement has been concluded between the contracting parties in text form.
§ Section 653 BGB regulates the broker’s remuneration. Pursuant to § 653 (1) BGB, the broker’s remuneration for his activity is deemed to be tacitly agreed if, according to the circumstances, his performance can only be fulfilled against payment. § Section 653 (2) of the German Civil Code (BGB) indicates that the taxable remuneration is to be regarded as such. If a taxable remuneration has not been fixed, the usual remuneration is to be regarded as agreed.
For the termination of the brokerage contract it is significant whether the contract was concluded for an indefinite period of time or whether its term is limited.
A contract with an indefinite term can be terminated at any time according to the brokerage law. No reasons need to be given in the letter of termination.
If, on the other hand, the term is limited, a different rule applies. The termination of a brokerage contract is then similar to the termination of an employment contract. In this case, the contract can be terminated subject to the notice periods or extraordinarily. For extraordinary termination, however, a valid reason must also be given in brokerage law. A valid reason for the client to terminate the broker would be, for example, if the broker commits a breach of contract.