How does agent commission work in Germany after the 2020 reform?

The 2020 reform split German agent commission equally between buyer and seller. The market-standard commission is 7.14% total (3.57% each side incl. VAT), but regional differences remain.

Short answer

Since 23 December 2020, § 656c BGB requires the party that commissions the agent to pay at least half the commission. The buyer cannot be charged more than the seller.
The market-standard total commission is 7.14% (3.57% each side incl. VAT). Hamburg is lower at 6.25% total. Downward agreements are possible; upward charges on buyers are legally blocked.
A written Maklervertrag with a clear commission clause is mandatory before any marketing activity for residential properties (§ 656a BGB Textform).

Legal basis: § 656c BGB

The Wohnungsvermittlungsgesetz was reformed in 2020. § 656c BGB stipulates: if only the seller commissions the agent, they can charge the buyer at most half what the seller pays. If the agent acts for both sides, commission must be split equally. The aim was to relieve buyers who in some regions (e.g. Berlin) previously had to bear the full commission.

Market commission rates by Bundesland

Despite the equal-split rule, regional differences in total commission persist. Bayern, Baden-Württemberg, Hessen: 7.14% total (3.57% each). Berlin: 7.14% total (previously buyer-only). Hamburg: 6.25% total (3.13% each). Brandenburg, Saxony: 7.14% total. Commission is freely negotiable downward; § 656c BGB protects buyers from upward charges.

Common billing errors by agents

A common error: agents invoice commission without a clear agreement. An effective Maklervertrag requires a clear commission agreement before the brokerage activity — verbal is not valid for residential properties (§ 656a BGB: Textform required). Another error: commission is invoiced without showing VAT separately. The 3.57% are gross figures including 19% VAT (net: 3.0%).

How 4property.net helps

4property.net manages Maklerverträge digitally and ensures commission agreements are in Textform and correctly documented. The CRM stores the agreed commission per property and party — the system automatically generates a correct commission invoice with VAT breakdown after a successful close. Agents avoid typical formal errors that lead to commission losses.