Pay-as-you-go principle

Buyer-Pays Principle - the legal principle that the party who hired the real estate agent is responsible for paying the agent’s commission. Since June 2015, this principle has been mandatory for the brokerage of rental apartments in Germany and is enshrined in Section 2(1a) of the Residential Property Brokerage Act (WoVermRG).

What does the “buyer pays” principle regulate in detail?

Before the introduction of the “buyer pays” principle, it was common practice for landlords to hire an agent but pass the commission on to the tenant. Often, apartment seekers paid two months’ net rent plus VAT, even though they had neither selected nor hired the agent. The Tenancy Law Amendment Act put an end to this practice as of June 1, 2015.

Since then, the rule has been: Whoever hires the real estate agent pays the commission. If the landlord hires a real estate agent to find a tenant, the landlord bears the full cost of the commission. Conversely, if a prospective tenant independently contacts a real estate agent and places a search order, the tenant pays. In practice, this means that for most tenancies, the commission is paid by the landlord, since agents are typically commissioned by the property owner.

Important: The “who commissions, pays” principle applies exclusively to rental apartments. For real estate purchases, a different regulation has been in effect since December 2020-the statutory commission split under the Law on the Distribution of Brokerage Costs for the Purchase of Apartments and Single-Family Homes. Under this law, the buyer may bear no more than the same share of the commission as the seller. In the Nuremberg metropolitan region, a 50-50 split of 3.57% each (including 19% VAT, i.e., 3% net) has established itself as the market standard.

Violations of the “buyer pays” principle are no trivial matter: agreements that transfer the obligation to pay commission to the tenant contrary to the legal regulation are void. Amounts already paid can be reclaimed within the three-year statute of limitations.

Impact on the Rental Market

The introduction of the “Bestellerprinzip” has noticeably changed the German rental market. Many landlords now forgo real estate agents and list their apartments themselves on portals such as ImmobilienScout24 or immowelt to save on commission costs. This has significantly increased the number of commission-free rental listings. At the same time, real estate services in the rental sector have become more professional, as landlords, as the paying clients, demand higher quality standards.

Critics argue, however, that the “Bestellerprinzip” can lead to hidden costs in tight housing markets. Some landlords factor the commission they pay themselves into the rent. Furthermore, the distinction between a genuine search request from a tenant and a de facto commission by the landlord is not always clear-cut-it depends on the exact circumstances of each individual case.

Obligations of the Broker Under the “Bestellerprinzip”

Brokers who are compensated exclusively by the landlord under the “Bestellerprinzip” must fulfill their obligations to the paying client: They are required to provide proper marketing, a structured tenant selection process, and a credit check. At the same time, they may not demand a commission from the tenant, not even as a voluntary payment or under any other guise. The line between permissible brokerage fees and impermissible circumvention is interpreted strictly by the courts.

Practical Tip for Nuremberg and Franconia

In the Nuremberg metropolitan region, the standard market tenant commission prior to 2015 was up to 2.38 times the net base rent (2 times the net base rent plus 19% VAT). Since the introduction of the “buyer pays” principle, this cost has been eliminated for tenants, provided the landlord has engaged the broker. Anyone looking for a rental apartment in Nuremberg, Fürth, or Erlangen should carefully verify whether a specific search mandate actually exists when presented with commission offers-and request an explanation of the exact mandate structure upon request. We recommend that landlords in the region consider hiring a professional real estate agent despite the cost: A targeted tenant selection process with a thorough credit check (Schufa, proof of income, self-disclosure) prevents more costly problems in the long run, such as rent defaults, legal disputes, or time-consuming eviction proceedings.

Frequently Asked Questions

Does the “buyer pays” principle also apply to real estate purchases?

No, the “buyer pays” principle does not apply to real estate purchases. Since December 2020, the law governing the allocation of brokerage fees stipulates that buyers pay no more than the same percentage of the commission as sellers. This regulation applies exclusively to the purchase of apartments and single-family homes by consumers. In Nuremberg and Franconia, a 50-50 split of 3.57 percent each, including VAT, has established itself as the market standard-this results in a total brokerage commission of 7.14% of the purchase price, with the buyer and seller each bearing half. Different regulations apply to commercial real estate or multi-family homes.

Can a tenant reclaim the commission if the landlord hired the real estate agent?

Yes, if the landlord awarded the brokerage contract and the commission was nevertheless billed to the tenant, this agreement is void under Section 2(1a) of the Residential Property Brokerage Act (WoVermRG). The tenant may reclaim the amount paid within the three-year civil statute of limitations. We advise those affected to save the brokerage contract, any email correspondence, and payment receipts and to keep them as evidence. In case of doubt, it is advisable to seek advice from a tenants’ association or a lawyer specializing in tenancy law-in Nuremberg, for example, the DMB Mieterverein Nürnberg und Umgebung e. V. is a competent point of contact.

Why do landlords still hire brokers despite the “orderer pays” principle?

Professional brokers offer landlords real added value even under the “orderer pays” principle: They handle professional listings on all relevant portals, filter incoming inquiries for seriousness and creditworthiness, conduct structured viewings, and systematically verify the financial standing of prospective tenants. Especially in Nuremberg, where demand for rental apartments significantly exceeds supply, structured marketing saves landlords a considerable amount of time. In addition, real estate agents handle the legally compliant drafting of the lease agreement, the handover with a written record, and-if needed-ongoing rental management, which provides valuable peace of mind to landlords without legal expertise.

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