Real estate commission – Everything you need to know about brokerage fees 2026

The 2020 commission reform: Brokerage regulations in Germany

Since December 23, 2020, new legal requirements have applied to many residential property purchases. Two points are particularly important:

1. Written Form Requirement: Brokerage agreements for the purchase of apartments or single-family houses must be concluded in "text form" (e.g., email, fax, or paper document).

2. The Split-Commission Principle: In typical consumer transactions, the buyer should not bear more than 50% of the total commission; the seller covers the remaining share.

Note: This regulation primarily concerns condominiums and single-family houses. It does not apply to residential rentals, where the "ordering principle" (Bestellerprinzip) continues to apply.

Who pays the real estate commission?

Who pays the fee depends on who appointed the agent and whether the agent is acting for both parties:

• Dual Agency (Buyer + Seller): Both sides may only be obligated to pay an equal share of the commission (in practice, usually 50/50).

• Agent Appointed Only by Seller: The buyer can only be obligated to pay if the seller assumes at least the same share (effectively a minimum 50% split).

• Agent Appointed Only by Buyer (Search Request): In this case, a buyer-side commission may apply. However, the written form requirement remains central for residential properties.

Rule of Thumb: In many cases, buyers and sellers share the commission equally. However, the specific agreements in the brokerage contract and the details in the marketing materials are decisive. For purchases, the specific clause in the notarized purchase agreement must also be observed.

How high are the fees? Standard commission in 2026

There is no fixed national fee schedule, as the amount of the commission is fundamentally subject to free negotiation. In practice, standard commissions (incl. VAT) often range between approximately 5.95% and 7.14% of the purchase price, depending on the federal state or region.

With a 50/50 split, this typically equates to 2.975% to 3.57% per party.

Calculation Example:

Formula: Purchase Price × Commission Rate = Gross Brokerage Fee

Purchase Price: €350,000; Total Commission: 7.14%

Total Fee: €350,000 × 0.0714 = €24,990

Under a 50/50 split:

Buyer’s Share: 3.57% = €12,495

Seller’s Share: 3.57% = €12,495

Understanding real estate costs: What’s behind the commission?

Beyond the percentage, you should always compare the service package. "Costs" are not just defined by the rate, but by the scope of work involved.

Typical agent services include:

• Market Value Analysis & Pricing Strategy

• Marketing (Exposé, portals, network) and viewing management

• Document Management, credit checks, negotiation, and support until the notary appointment.

In dynamic markets, professional marketing can significantly shorten the sales period and increase negotiation security.

How to ensure you don’t overpay

In the view of Engel & Völkers, the most effective approach is for the commission agreement to be established via a buyer’s search mandate or a qualified exclusive listing by the seller. Consequently, both parties are equally and immediately liable for payment. To ensure transparency and legal certainty, we recommend documenting the exact commission amount and payment obligations within the notarized purchase contract.

Payment maturity: When do I pay the agent?

Legally, the claim for commission typically arises only when the main contract is finalized—i.e., after the notarial certification of the property purchase.

In practice, the commission is usually due within 7–14 days of the contract signing.

Note on Reform: In certain cases, the buyer may only be required to pay once the seller has proven they have paid their share (protecting the half-split principle).

Don’t leave your sales success to chance

Both sellers and buyers benefit from the cost-sharing provided by the modern commission laws. This fair split ensures neutral, professional advice that serves both parties equally. At Engel & Völkers, clients also benefit from our global network, allowing us to find the right buyer for the right property.

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