Brokerage commission when selling a house: Who pays what since 2020?

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Article L-0013 · 03.09.2026 · 5 min. reading time · Joé Christian Ewrard

How the broker commission is regulated when selling a house

For many owners, selling initially feels like a jungle – and there are hardly any topics with as much uncertainty as the question: Who actually pays the broker? Since the end of 2020, there has been a clear regulation for residential properties. Sellers and buyers usually share the broker commission equally.

This applies to single-family homes, semi-detached houses, terraced houses, and condominiums, i.e., all owner-occupied residential properties. The split is legally required if the broker serves both parties with a so-called proof of agency and thus establishes contact between buyer and seller.

In the Eifel region, it was long customary that buyers often had to pay the entire commission – with the new regulations, this is no longer permitted if the broker works for both sides. For plots of land, commercial properties, or multi-family houses, these regulations often do not apply; here it always depends on the individual contract.

What must be included in the broker commission contract

Important: The agreement on the commission must be recorded in writing. The law requires that broker contracts for residential properties have been concluded at least in text form since 2020, i.e., by letter, fax, or email. Oral agreements are no longer sufficient.

The contract must state which commission rate applies and who bears which share. It should also clearly regulate for which party the broker is working and what services are provided. If uncertainty arises later, for example in the case of a homeowners' association or multiple buyers, an exact formulation provides clarity and protects against disputes.

It is advisable to agree on the commission share so that both parties bear exactly the same amount. Sellers who want to be on the safe side should additionally have the broker confirm in writing that the buyer is also obliged to pay their share.

The amount of the broker commission – and what you should watch out for

The amount of the broker commission is not legally fixed. It is rather based on local customs and is freely agreed upon between broker, seller, and buyer. In rural districts around Bitburg, Trier, or the Vulkaneifel, the rates are usually within the range common nationwide for residential properties. Those who want to know the exact commission should discuss this with the broker early on.

Important: Since the legal change, the broker may no longer demand a higher commission from one party than the other pays. If the buyer pays half, the seller may only be charged the other half.

Beware of cases where the contract design seemingly tries to circumvent the rule in a tricky way – for example, through various additional services that are shown with separate costs. In case of doubt, it helps to ask specifically and have a draft contract reviewed.

Who pays the broker commission first – and how the billing is done

In practice, the process usually follows this order: After the successful sale – that is, once the purchase contract is notarized – the agent issues an invoice to both the seller and the buyer. Both pay their share directly to the agency. No money transfer between the parties is necessary here.

Typically, professional agents coordinate closely with notaries so that the commission can be paid alongside the final steps of the sales process. This approach has also proven effective in the Eifelkreis Bitburg-Prüm or Trier, where making payment details transparent early in the process provides security and contributes to a trustworthy transaction.

If uncertainties arise during the process, it is advisable to consult with the agent. If tax or legal questions come up, for example regarding operating costs or special rental conditions, you should always involve a tax advisor or notary.

What mistakes commonly occur on both sides in practice?

Based on experience, there are mainly three mistakes regarding agent commissions. First: The parties fail to agree in writing early on who bears which costs. This often leads to misunderstandings later. Second: Commission rates are accepted without checking the market or regional practices. Third: Sellers rely on the buyer "to pay anyway" – which has not been straightforward since 2020.

In Bitburg and the surrounding area, it is not uncommon for one party in inheritance communities or divorce properties to initially exclude the commission issue. This causes stress as the notary appointment approaches. An open conversation with the agent and clear contract drafting ensure that all parties know what to expect.

How is it with exclusive seller or buyer mandates?

The so-called "ordering party principle" from tenancy law does not apply to the sale of residential properties. If the seller agrees to a seller-only commission, they must bear it entirely – the buyer cannot be charged in this case.

Conversely, if the buyer alone places a search order with the agent, the agent can only charge the searching party a commission. Such arrangements are less common in the greater Trier area, as the classic sales mandate is dominated by the owner side.

To avoid the buyer feeling disadvantaged, it is recommended to clarify early on whether the agent works for both parties or represents only one. In any case, a clear contractual agreement creates transparency.

What applies to properties on the border with Luxembourg?

The Eifel region borders several districts directly adjacent to Luxembourg and thus a different legal system with differing practices. For example, if you address demand from Luxembourgish buyers or are looking for a property on both sides of the border, you should be careful: The German commission regulation always applies when the property in question is located in Germany.

In cross-border contexts, it is advisable to review contract drafting in advance with an agent experienced in both markets and to involve a notary in case of legal uncertainties. Luxembourgish models for agent commissions often differ from German standards; however, these must not simply be applied to German real estate transactions.

Why brokers are often a good investment despite the commission

For many sellers, the commission payment initially appears as a cost factor. Experience shows, however, that a good agent not only handles marketing and viewings but also ensures proper documentation, checks creditworthiness, and helps resolve complex cases – for example, in inheritance communities or complicated land divisions. So you are not just paying for brokerage but for a smooth and legally secure transaction.

Especially in a region like the Eifel, with sometimes lengthy approval processes and individual peculiarities in development plans, an experienced real estate agent is often a valuable asset – and protects against costly mistakes that can occur in private sales.

What to do if the buyer backs out – still pay?

A common consultation topic is the question: When is the commission due – and must it still be paid if the buyer ultimately does not purchase? The commission is generally only owed if a valid notarized purchase contract has been concluded and is attributable to the agent's activity. If the buyer withdraws before the notary appointment, there is usually no claim to commission.

Exceptions exist in cases where a binding preliminary contract has been concluded and one party withdraws without cause. In such situations, an individual review by a lawyer is recommended.

Anyone wishing to sell their property should inform themselves early about handling the agent's commission and place value on a clear written agreement. A personal consultation with an agency experienced in the region helps clarify open questions and remove uncertainties – so you can complete the sale safely and with confidence.

Frequently Asked Questions

Do I as a seller have to necessarily hire an agent?

No. Selling is basically also possible privately. However, many choose professional support for security reasons, especially in legal and financial uncertainties.

Are there cases where only the buyer or only the seller pays the commission?

Yes, if the agent works exclusively for one party, the commission can be borne solely by that side. However, this must be clearly regulated in writing.

How can I check if the commission amount is reasonable?

Agents are obliged to state the amount transparently. A comparison with other offers in the region or a conversation with several agents provides an initial indication. A "mandatory price binding" does not exist.

When and how is the commission paid?

The commission is due after notarization of the purchase contract. Both seller and buyer receive an invoice from the agent and pay directly to the agency.

Can commission payments be claimed for tax purposes?

This is only possible in exceptional cases, such as with rented properties or commercial use. In most cases, these are private sales where no tax deductibility applies. In case of doubt, consult a tax advisor.

Does the split also apply when selling a plot of land?

No, the statutory obligation to split applies only to residential properties. For plots of land and commercial properties, the division is freely negotiable.

Topics: Agent commission, house sale, law 2020, commission split, seller, buyer, contract, Eifel

Responsible for this post: Joé Christian Ewrard — Owner & Broker IHK, PRIOCASA Immobilien & Financial service. Status: 03.09.2026. The draft was created with the support of artificial intelligence and reviewed and approved before publication (AI Transparency). This post does not replace legal or tax advice; for individual questions, please contact a notary, lawyer, or tax advisor.

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