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Brokerage law

What is brokerage law?

The type of contract known as the “brokerage contract” is only very roughly and fundamentally defined in the German Civil Code (BGB) in Sections 652 ff. BGB. Brokerage law is therefore to be regarded as the domain of case law. The BGB itself only contains regulations on the general issues and provisions relating to loan brokerage contracts and the special protection provisions for consumers. The brokerage contract is an independent type of contract. If the broker successfully arranges the brokerage, he is entitled to remuneration. However, this is always subject to the condition that there is a causal connection between the contract and the broker’s activity. The remuneration of a broker is usually a percentage of the property value. In addition to the written form for a brokerage contract for an apartment or a single-family home, the legislature has also introduced a principle of equal division.

Since 2020, the written form for brokerage contracts has been mandatory. The Brokerage and Property Developer Ordinance also applies to commercial brokers. When it comes to real estate agents, a basic distinction can be made between those who broker the purchase of real estate and those who broker rental properties. There are three ways to structure a brokerage contract. In the case of a simple brokerage contract in the real estate brokerage business, which according to the law does not contain any obligations on the part of the agent, the agent only receives remuneration if the transaction is successful – (causal connection). In the case of an exclusive contract, the contract excludes the involvement of another agent. Such a contract usually has an indefinite term, usually indefinite with the option of monthly termination. The Housing Brokerage Act applies to agents of rental properties.

Overview of relevant standards of construction law and construction contract law:

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Our services
in brokerage law

We at JUR | URBAN offers you the following services in real estate law, among others:

  • Preparation and design of contracts and addendums:
    in particular brokerage contracts, general terms and conditions (B2C and B2B)
  • Advice and representation on disputes:
    in particular brokerage commission, liability
  • Out-of-court and judicial Representation:
    in particular enforcement of claims for compensation, defense against unlawful claims
  • Other fields of activity:
    In addition to the activities mentioned above, we also provide advice and representation in the area of ​​employment law, Tenancy law, Construction law or enforcement


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