commissions: brokers want to orderer- principle complain

Popular buildings in the Bänschstraße in Berlin-Friedrichshain | © Jens Kalaene / dpa

The Real Estate Association IVD has announced plans to take action against the proposed new regulations of the grand coalition in the tenancy. As The Mirror reports, the association wants to complain against the so-called ordering principle in the use of agents. He announced to move before the Federal Constitutional Court in Karlsruhe, once the regulations adopted by the Government have entered into force.

In the brokerage fees will in future the principle of “Who ordered, paid the” apply. Agents are therefore paid for by those on whose behalf they are working. So could be created in the opinion of Federal Justice Minister Heiko Maas (SPD) a fair balance between the interests of tenants and landlords. So far, the brokers were borne by the tenant’s costs.

As the magazine writes, doubted the IVD the constitutionality of the bill. The association here refers to a report by the Mainz State lawyer Friedhelm hooves. It referred to the lawyer regulation as “serious interference with the freedom of occupation”. The legislature would obviously not only the fees of brokers limited, but they literally displace a large market segment.

With the new rules for the brokerage services the black and red German government wants to improve protection against drastic rent increases. To this end, Justice and Consumer Protection Minister Maas had recently agreed with the tips of Union and SPD. For new leases in particular coveted areas, the rent must therefore continue to exceed the usual local level only by a maximum of ten percent. Excluded are new and fully modernized apartments. The regulations will come into force in the first half of 2015.