What does the ordering principle mean?



The ordering principle follows the principle: Whoever orders the service must also pay for it. Before this regulation was introduced, this was often not the case with brokers selling rental apartments. It is true that the owner of the apartment usually commissioned the broker to find a new tenant. But when the lease was signed, the tenant usually had to pay the broker’s commission – usually the amount of the rent for two months.

With the entry into force of the ordering principle, this practice was declared inadmissible. If the landlord hires the broker to mediate his rental apartment, he also has to pay the brokerage fee. If the buyer principle were also to apply to property purchases, that would mean: The buyer would have to pay the brokerage fees, and that is usually the seller. At the moment, the regulations differ from state to state: sometimes the buyer and seller share the fees, sometimes the buyer pays them completely. According to a new draft law, the agent who hires the agent should pay the broker’s commission in future, and that is usually the seller.

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