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.
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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
1. Marketing Authorization: Specific permissions for marketing activities, including advertising and use of photos - needed for residential properties
2. Consumer Protection Notice: Required when the client is a consumer (private individual) under German law
3. Dual Agency Provisions: Required when the broker may act for both parties in the transaction
4. Money Laundering Compliance: Required for high-value transactions or when dealing with commercial properties
5. Special Commission Arrangements: Needed when commission structure includes complex elements or success fees
6. Property Management Services: Optional section for additional property management services if offered
7. International Aspects: Required when dealing with international clients or cross-border transactions
1. Property Description Schedule: Detailed description of the property, including plans, photographs, and specifications
2. Commission Schedule: Detailed breakdown of commission rates, calculation methods, and payment terms
3. Marketing Plan: Detailed marketing strategy and activities to be undertaken by the broker
4. Required Documentation: List of necessary documents for property transaction and commission payment
5. Broker's License and Qualifications: Copies of broker's professional licenses and qualifications
6. Data Processing Agreement: GDPR-compliant data processing terms and conditions
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