Brokerage fee sharing: does the law also apply to commercial properties?

What about the sale of an office or multi-family building?

The law also raises the question: how does this apply to commercial real estate? Who pays the broker’s commission when an office, logistics space, or multi-family building is sold?

The answer is essentially in the name of the law itself: “Distribution of broker costs in the mediation of purchase contracts for apartments and single-family homes.” It applies to residential property purchased by private individuals, or “consumers,” as the law literally states.

Commercial properties, on the other hand, are usually purchased by companies. These transactions therefore do not fall under the brokerage fee sharing law. Investors purchasing multi-family buildings are also considered commercial operators in this context and are not affected.

Who pays the commission for commercial properties?

Unlike private residential real estate, for commercial properties it is a matter of negotiation which party pays the broker’s commission in full or in part. The market environment has a strong influence on this.

In a seller’s market (more demand than supply), the acquiring party is more likely to agree to pay the commission. In a buyer’s market (more supply than demand), the pressure is on the party wanting to sell—which generally increases their willingness to cover the commission.