Door-to-door sales (cancellation)

A door-to-door sale is a consumer contract concluded outside the business premises of the seller-for example, at the front door, on public streets, at the workplace, or at recreational events. Under German law, consumers are granted a 14-day right of withdrawal in such situations pursuant to Section 312g of the German Civil Code (BGB), because the contract is often concluded in a situation where the consumer is caught off guard. In the real estate sector, door-to-door sales are particularly relevant for brokerage contracts, energy service contracts, and certain renovation offers.

Right of Withdrawal for Door-to-Door Sales - Basics

Consumers who enter into a contract outside of business premises (including by telephone at the initiative of the business or via platforms capable of remote communication) may withdraw from it within 14 days without giving a reason. The period begins as soon as proper instructions regarding the right of withdrawal have been provided. If such instructions are missing, the right of withdrawal is extended to twelve months and 14 days. The withdrawal must be declared in writing (letter, email); a statement of reasons is not required.

Exceptions: Real Estate Purchase Agreements and Notarized Contracts

Notarized contracts-in particular real estate purchase agreements and deeds of conveyance-are exempt from the right of withdrawal (Section 312g(2)(13) BGB). The legislature considers the requirement for notarization to be sufficient protection in this context. However, the right of withdrawal applies to:

• Real estate brokerage contracts concluded at the customer’s doorstep or through unsolicited contact
• Energy consulting or renovation contracts concluded during home visits
• Financing contracts (construction financing) agreed upon outside a bank branch (the special right of withdrawal under § 495 BGB applies here)

Practical Implications for Brokerage Contracts

Following the 2020 reform of brokerage law, brokerage contracts with consumers regarding the purchase of single-family homes and apartments must be concluded in writing. If such contracts are concluded outside of business premises (e.g., during an initial on-site consultation), the broker is required to provide a cancellation policy. If they fail to do so, the right of cancellation extends for an additional 12 months and 14 days-the consumer can void the brokerage contract and thereby nullify the commission claim.

Practical Tip for Property Owners in Nuremberg and Franconia

In our work in Nuremberg and the surrounding region, we ensure that all brokerage contracts concluded outside our business premises properly include a cancellation policy. As a property owner or prospective buyer, you should ensure that any service provider attempting to conclude a contract at your doorstep or during an unsolicited visit provides you with a legally compliant notice of withdrawal. If in doubt, take your time and exercise your right of withdrawal.

Frequently Asked Questions

Does the right of withdrawal also apply to real estate purchase contracts?

No. Real estate purchase contracts and related legal transactions involving property rights are exempt from the right of withdrawal because they must be notarized. The notary serves an advisory and cooling-off period function, which ensures protection against being taken by surprise.

What do I need to keep in mind when withdrawing?

The withdrawal must be declared in writing (letter, fax, email) within the 14-day period. State clearly and unambiguously that you are withdrawing from the contract concluded on [date]. No reason is required; you should keep a copy. The business must then refund all payments already made.

Can I also cancel a contractor’s contract that I signed during a home visit?

Yes, if it was concluded outside of business premises and the contractor’s services have not yet been fully performed. However, if work begins before the cancellation period expires, you may waive your right of cancellation upon request. If work has already begun, you may have to pay a pro-rata fee.

Right of withdrawal for construction financing - the extended right of withdrawal

In the area of construction financing, there was a much-discussed special case in the past: the so-called “withdrawal joker” phenomenon. Many loan agreements from 2002 to 2010 contained incorrect cancellation instructions-with the result that the 14-day cancellation period never began to run, and borrowers were able to cancel their agreements even years later. Borrowers took advantage of this opportunity, particularly during periods of low interest rates, to exit expensive legacy contracts. The legislature ended this “cancellation joker” with a cut-off date of June 21, 2016; since then, older loan agreements can no longer be canceled on the basis of incorrect cancellation instructions.

For current mortgage agreements, the standard right of cancellation under Section 495 of the German Civil Code (BGB) applies. Anyone who enters into a loan agreement outside a bank branch-for example, with a mortgage broker, during a home visit, or online-has the right to cancel it within 14 days. The cancellation policy must be provided properly; if it is missing or contains errors, the cancellation period is extended to one year and 14 days.

Door-to-door sales in the real estate industry - prevention through proper processes

For service providers in the real estate industry-real estate agents, energy consultants, property managers, construction planners-the proper handling of contracts concluded outside of business premises is a critical compliance issue. An agent who has a client sign an exclusive listing agreement during the initial viewing is entering into a contract outside of their business premises-and is required to provide a cancellation policy. The same applies to an energy consultant who brings an energy performance certificate order during a home visit.

At my-home.de, we ensure that all contracts with our clients-whether concluded in our offices or on-site-are legally compliant. Real estate brokerage contracts are concluded in writing and, if signed outside of business premises, include a proper notice of withdrawal in accordance with Annex 1 to Art. 246a § 1 (2) EGBGB. Owners and buyers who are unsure whether a contract presented to them meets these requirements can contact us at any time or consult a lawyer in Nuremberg specializing in contract law.

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