German Federal Court rules on real estate broker commission obligations

A ruling by the German Federal Court of Justice (Bundesgerichtshof) has clarified the obligations regarding real estate broker commissions. The court determined that a buyer remains liable for their share of the commission even if the seller revokes their own brokerage contract, regardless of whether the broker caused the revocation.

The case involved a terraced house built on leasehold land. While a lower court (Kammergericht) initially ruled in favor of the buyer, the Federal Court of Justice overturned this, applying the 'principle of equal division' (Halbteilungsgrundsatz). The court noted that a revocation by a client does not constitute a waiver of fees by the broker, and the law requires both parties to commit to equal commission amounts.

In the broader context of German real estate transactions, sellers face various costs including broker commissions, mortgage discharge fees, energy certificates, and potential prepayment penalties. For a typical property sale, such as a €460,000 apartment in Munich, total transaction costs can reach approximately 4.92 percent of the sale price.