Property Commission Agreement Template for Germany

The Property Commission Agreement is a crucial document in German real estate transactions, used to formalize the relationship between property brokers and their clients. It is essential for both residential and commercial property dealings, establishing clear terms for broker compensation and services. The agreement must comply with German legal requirements, including the Civil Code (BGB) provisions on brokerage contracts, consumer protection laws, and specific regulations governing real estate transactions. This document typically includes detailed information about the property, scope of services, commission calculations, payment terms, and both parties' obligations. It's particularly important in Germany where real estate brokerage is heavily regulated and commission structures are often subject to specific legal requirements.

1. Parties: Identification of the broker (commission agent) and the client, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, including the client's intention to sell/lease the property and engagement of the broker

3. Definitions: Key terms used throughout the agreement, including 'Property', 'Commission', 'Successful Transaction', and 'Effective Date'

4. Scope of Services: Detailed description of the broker's services, including marketing, showing property, negotiating, and documentation duties

5. Property Details: Specific description of the property, including address, land register details, and relevant characteristics

6. Commission Terms: Commission rate, calculation method, payment timing, and conditions for commission entitlement

7. Broker's Obligations: Detailed responsibilities of the broker, including marketing efforts, reporting requirements, and professional standards

8. Client's Obligations: Client's duties, including providing accurate information, access to property, and cooperation requirements

9. Exclusivity: Terms regarding whether the agreement is exclusive or non-exclusive

10. Term and Termination: Duration of the agreement, renewal terms, and termination provisions

11. Confidentiality: Obligations regarding confidential information and data protection

12. Governing Law: Confirmation of German law application and jurisdiction

13. Miscellaneous: Standard provisions including severability, entire agreement, and amendments