The SPD Socialists has found a new campaign theme and now wants to introduce the “ordering principle” also when buying real estate. “Who orders, who pays”, so the justice-minded motto of the comrades.
In mid-January 2017, the SPD faction in the Bundestag on the occasion of the upcoming elections to the Bundestag and various state elections defined their housing policy goals. By changing the law, they want to expand tenant protection and introduce the buyer principle when purchasing real estate.
Buyer principle in the rental of housing
Since June 2015, with regard to the brokerage fee for rental apartments applies: “Who ordered, who pays.” Since then, many landlords avoid the involvement of brokers and offer their rented apartment itself or tenants bring a Nachmieter.
The real estate agent may continue to accept search requests from tenants and could thereby demand commission from the renter. But the broker may then not have the offered object in its stock or offer multiple seekers.
This law has massive consequences even three years after its launch, not only for brokers, but also for landlords and tenants.
Many landlords who want to save the cost of a professional rental, have the financial. and time expenses of a rental underestimated. Many have unchecked problematic tenants brought into the house, know insufficiently the rights and obligations of landlords and tenants, have legally insecure leases concluded with some ineffective clauses, with too low or legally unacceptably high rent, have with inaccurate handover protocols the way for problems with the move paved. Although you have saved the commission that you could have used in your tax return, you end up with financial loss and a lot of time.
Tenants who turn to a broker with your rental application will find it here hardly more.
It is not only unattractive for realtors to work for free and to use the knowledge and experience that they have acquired without paying for it. Attempts to find and find a home for tenants usually fail, due to the cooperation of landlords, landlords commissioned by landlords and the high expenditure of time, which preclude uncertain prospects of success. Finally, the hireling can find something else.
Conclusion: The rental housing market has become intransparent due to the “ordering principle”, the information content of the offers is low, the flexibility for viewing appointments is low. No performance, but this for free. Thank you, comrades!
Buyer principle when buying real estate
If it goes by the will of the SPD parliamentary group, the orderer principle should soon apply to the purchase of real estate. So far there is no legal regulation, the brokerage brokerage can be freely negotiated between brokers and buyers or sellers under the competition law.
If the SPD dreams become law, it also has massive consequences for buyers, sellers and brokers.
A positive effect in the housing leases is that many unqualified “kitchen table brokers” have disappeared from the scene. Dramatic will be on sale.
Again, many sellers will either raise the commission on the purchase price or try it yourself.
Incorrect assessment of the real estate value, a lack of marketing concept, cheap or free advertisements, stress in processing the inquiries, annoyance about negative, sometimes insulting comments from “interested parties”, as well as viewing appointments, with which the seller spends a lot of free time, if the interested party appears.
Everything draws because documents are missing, financing is not available and the seller can start over. Then comes the bill of the notary for the draft bill in the amount of a few hundred to a few thousand euros, because the prospective buyer has withdrawn an hour before the notary’s appointment interest.
The buyer will save the brokerage fee, but as with the housing letting, there will be a lack of transparency, information content of offers and flexibility in viewing appointments.
For homebuyers, it is not uninteresting to know how the real estate market in the region has developed lately, whether there are tendencies that indicate that the prices of the region will fall or rise in the near future. What are the prospects for a possible lease or a later resale of the property? Questions like these can usually be answered in more detail by a good real estate agent with relevant skills and knowledge of the market than a private seller who has never dealt with such issues.
For the purchase to be completed quickly, the financing must be completed, the qualified broker can help here and quickly provide the necessary documents.
The broker also acts as an intermediary between the seller, who is often emotionally connected with the property, and the acquirer’s economic calculations.
Unfortunately, a professional broker can not work for free and not give away his knowledge and experience. There are also a number of unqualified, unfriendly and unreliable brokers, as can be found in all industries. Here, however, the Federal Government has missed the opportunity to do an important job with vocational training, consumers and seriously committed brokers.
If the purchaser principle becomes law when buying real estate, it would also be a problem for many reputable and qualified but small brokerage companies. The operation of a brokerage company is associated with ever higher costs, which can then afford only banks and large franchise brokers with considerable advertising budget.
Land transfer tax and notary
In addition to the brokerage costs, the reduction of the real estate transfer tax and the notary costs are in the focus of the SPD.
For example, when acquiring an apartment, depending on the amount of the purchase price and other services, up to 1.5 percent must be paid for the notary and about half a percent of the purchase price for the land register entry.
Since it is only a prescribed standard performance, the SPD instead wants to set a lump sum for it by law. The proposal meets the resistance of the notaries.
It is unlikely that the state or the states will waive taxes and fees.