Tenders Are Invited For Research And Development Services And Related Consultancy Services – Research Project To Evaluate The Law On The Distribution Of Brokerage Costs When Arranging Purchase Contracts For Apartments And Single-Family Homes

Research And Development Services And Related Consultancy Services – Research Project To Evaluate The Law On The Distribution Of Brokerage Costs When Arranging Purchase Contracts For Apartments And Single-Family Homes. The Law On The Distribution Of Brokerage Costs When Arranging Purchase Contracts For Apartments And Single-Family Homes (Federal Law Gazette I 2020, No. 28) Came Into Force On December 23, 2020. The Aim Of The Law Was To Introduce Changes To Brokerage Law, Which Were Intended To Increase Transparency And Legal Certainty In The Brokering Of Purchase Contracts For Apartments And Single-Family Homes Through Uniformly Binding Regulations Across The Country And, In Particular, To Protect Consumers As Buyers Of Residential Property From Taking Advantage Of A De Facto Predicament. The Core Component Of The Law Was A Ban On Passing On The Entire Or Majority Of Brokerage Costs To One Party To The Purchase Contract If There Is A Consumer On The Buyers Side. This Ban Was Introduced Regardless Of Whether Both Or Only One Of The Parties To The Purchase Agreement Are Also Parties To The Brokerage Agreement. In The Event That A (Brokerage) Contract Is Concluded Only Between One Of The Parties To The Purchase Contract And The Broker, A Maximum Limit Of 50 Percent Of The Total Brokerage Fee To Be Paid Has Been Set For The (Contractual) Passing On Of Brokerage Costs. In Order To Secure The Aforementioned Regulation, It Was Legally Stipulated That If The Brokerage Costs Are Passed On To The Party Who Did Not Conclude The Brokerage Contract, The Payment Of The Brokerage Fee Is Only Due When The Other Party Has Proven That It Has Fulfilled Its Payment Obligation. Likewise, In The Event That Both Seller And Buyer Are Contractual Partners In The Brokerage Agreement, Half Of The Costs Have Been Borne By Law. In The Justification For The Governments Draft Of The Law On The Distribution Of Brokerage Costs When Arranging Purchase Contracts For Apartments And Single-Family Houses It Was Announced That The Intention Is To Evaluate The Changed Regulations After Five Years At The Latest (Bundestag Printed Matter 19/15827, Page 18). The Subject Of The Evaluation Should Be To Check Whether The Objectives Pursued By The New Regulation Have Been Achieved And What Side Effects, If Any, Have Occurred. In Particular, Based On The Actual Development Of The Market For Apartments And Single-Family Homes, It Should Be Checked Whether Buyers Of These Properties Continue To Be Passed On Brokerage Costs That Were Primarily Incurred In The Interests Of The Seller. In This Context, Market Developments In The Area Of ​​Brokers Should Also Be Used To Determine How The Regulations On The Distribution Of Brokerage Fees Have Affected The Amount Of Usual Remuneration And The Traceability Of Pricing. The Evaluation Should Be Based On Raw Housing Market Data (In Particular The Purchase Prices Of The Properties In Question), A Survey Of The Relevant Market Participants (Buyers, Sellers And Brokers) And Members Of The Relevant Legal Professions