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Paying Real Estate Agents Twice |
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 When you are looking for a place to live, using the services
of a real estate agent can save a lot of energy and time. Having hired your agent, you make an appointment to see an interesting
property.
While waiting for him, another person shows up with the keys
and an exposé on the house. Do you now have to pay both agents?
It depends on the substance of the contract. Usually, merely knowing
the name and address of the property and owner/seller does not qualify,
since this is only information that might lead to signing a contract.
This proof is the first step for the broker in earning his fee, since
he can then start negotiations with the owner. The right to demand the
broker's commission has not yet been earned. The broker will only be
entitled to a commission upon signing a rental or sale contract.
If the first broker were still to demand a broker's commission this
would clearly violate the Law on Unfair Competition (Gesetz gegen den
unlauteren Wettbewerb = UWG). He would violate §1 UWG, which prohibits
the violation of good morals. Such a violation would entitle you to the
recovery of damages. In practice, this means for you that you do not
have to pay the first broker. He presumably will be receiving a
broker's commission from the second broker, but this does not relate to
your situation. Of course the second broker is entitled to his
fee.
You will be liable to pay two brokers if the seller hired two or more
brokers and you received services from both real estate agents. This
situation occurs if both brokers introduce you to the same landlord or
seller and you sign a contract with that principal. Here is how you can
protect yourself from paying for the same service twice: If you
already have the exposé of a property from another broker, then
immediately instruct the second broker on this fact and mention that
you do not want to enter negotiations regarding this property.
 Alexander Baron von Engelhardt - Foreigners Attorney based in Berlin, specialising in domestic,
international, civil and commercial law. He also provides counseling
for start-ups.
Wilhelmstraße 94, D-10117 Berlin
Email:
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Website: www.Rechtsanwalt-AvE.com
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