“Commission-free” appears in many real estate listings—but the term is not unambiguous. Sometimes it means that no estate agent is involved at all; sometimes it means that the seller alone bears the brokerage fee and that the buyer incurs no estate agent costs. We explain what “commission-free” and “commission-free for buyers” specifically mean and what legal framework has applied since the 2020 reform.
What does “commission-free” mean in a listing?
Whether in an advertisement, an exposé or on a metasearch engine: “commission-free” is always a matter of perspective. The term initially says only that no brokerage commission is charged to a particular party—as a rule, the buyer. However, it does not automatically mean that no estate agent is involved at all.
In practice, the notice refers to two completely different scenarios:
- Private sale: The owner sells without an estate agent. Since nobody brokers the sale, no brokerage fee arises at all—neither for the buyer nor for the seller.
- Sale through an estate agent with an exclusive seller commission: An estate agent has been commissioned, but the seller bears the agent’s entire fee. The offer remains “commission-free” for the buyer, even though an estate agent is involved.
For you as an interested party or seller, it is therefore important to understand from whose perspective an offer is “commission-free.” On portals and in metasearch—for example, at TraumImmo—the notice almost always refers to the searching party, i.e. the buyer.
“Commission-free for buyers”: Who then bears the costs?
The wording “commission-free for buyers” is the more unambiguous case. It means: An estate agent is involved, but the seller alone pays the agent’s remuneration. Technically, this is referred to as an internal commission or seller commission.
For sellers, this is a deliberate marketing argument. An offer without additional costs appeals to more interested parties and can noticeably increase the pool of potential buyers—especially because buyers’ ancillary purchase costs are already high. From an economic perspective, the seller is therefore not passing on part of the marketing costs to the buyer.
Important: “Commission-free for buyers” does not mean that the estate agent works for free. It only means that another party—the seller—assumes the commission.
The legal framework: the Brokerage Costs Act since 2020
To understand why “commission-free for buyers” is so widespread, you need to know theKnow the 2020 reform. With the Act on the Distribution of Broker Costs in the Brokering of Purchase Agreements for Apartments and Single-Family Homes, in force since December 23, 2020, Sections 656a to 656d were added to the German Civil Code. The aim was to protect buyers of residential real estate from the one-sided transfer of broker costs.
The key provisions at a glance:
- Equal-sharing principle in the case of dual agency: If the broker is paid by both parties, both must undertake to pay “in equal amounts” (Section 656c BGB). A brokerage agreement that deviates from this is invalid.
- Waiver applies to both parties: If the broker agrees with one party to act for it free of charge, the broker may not demand a commission from the other party either.
- Assumption by one party: If only one side has concluded the brokerage agreement, it may charge the other side no more than half of the costs – and the claim does not become due until the instructing party has demonstrably paid its share (Section 656d BGB).
- Text form: The brokerage agreement for an apartment or single-family home must be in text form (Section 656a BGB), meaning it must be documented at least in writing, by email, or in a similar form.
These rules explain the logic behind the listing: The seller may assume the entire commission at any time – the result is an offer that is “commission-free” for the buyer. Conversely, however, a broker may not charge the buyer a higher share than the seller.
Only for apartments, single-family homes, and consumers
The protective provisions of Sections 656c and 656d BGB do not apply to every property. They apply exclusively to the purchase of apartments and single-family homes and only when the buyer is a consumer. The equal-sharing principle does not apply to undeveloped land, apartment buildings purchased as an investment, or commercial real estate – here, the distribution of the commission is freely negotiable.
That the courts take this consumer protection seriously is demonstrated by a recent decision: On March 6, 2025, the Federal Court of Justice clarified that the equal-sharing principle also applies if not the contracting party itself, but a third party concludes the brokerage agreement (Federal Court of Justice, I ZR 32/24). Unequal commissions render the contract invalid.
Does “commission-free” automatically mean cheaper?
Not necessarily. “Commission-free” describes who bears the broker’s costs—not whether the purchase price is fair. If the seller pays the commission, they may try to include these costs in the asking price. In individual cases, a “commission-free” offer may therefore be more expensive than a comparable property with a disclosed buyer’s commission.
For context: The broker’s commission is freely negotiable and in 2026 is usually between 5.95 and 7.14 percent of the purchase price, including VAT. With the customary equal split, each party pays around 3.57 percent. Whether “commission-free” pays off for you therefore always depends on the overall package of purchase price and additional costs—not solely on the label in the listing.
Advantages and disadvantages of “commission-free”
Whether a commission-free offer is an advantage depends on your role:
- Advantage for buyers: No broker’s commission is payable—for a purchase price of 400,000 euros, this quickly amounts to around 14,000 euros less in ancillary purchase costs.
- Advantage for sellers: The offer appears more attractive and reaches more interested parties, which can speed up the sales process.
- Advantage – clear legal position: If one party bears the commission alone, discussions about its allocation are avoided.
- Disadvantage – possible price markup: The seller can factor the commission into the purchase price, so the saving exists only on paper.
- Disadvantage – ambiguity in the listing: “Commission-free” does not reveal whether a broker is involved or whether the property is being sold privately.
- Disadvantage for sellers: Anyone who pays the entire commission bears costs that could be shared with the buyer in a split-commission arrangement.
FAQ about “selling commission-free”
Does “commission-free” always mean that I pay nothing as a buyer?
As a rule, yes—as far as the broker’s commission is concerned. The notice is generally aimed at the searching party, meaning the buyer. Other ancillary purchase costs such as real estate transfer tax, the notary and the land register remain unaffected and continue to apply.
Does “commission-free” mean that the property is being sold privately?
Not necessarily. It may be a purely private sale without a broker, but it may equally be a sale through a broker whose fee is paid solely by the seller. The term that alone does not reveal it – ask if in doubt.
Is “commission-free for buyers” legally permitted?
Yes. The seller may assume the entire broker’s commission. The reverse is not permitted: A broker may not charge the consumer buyer a higher share than the seller when purchasing an apartment or single-family house.
Does the commission split apply to every property?
No. The equal-sharing principle under Sections 656c and 656d of the German Civil Code (BGB) applies only to apartments and single-family houses with a consumer as the buyer. For plots of land, multi-family buildings, or commercial properties, the allocation is freely negotiable.
Does a brokerage agreement have to be in writing?
For apartments and single-family houses, yes. Under Section 656a BGB, the brokerage agreement must be in text form. A purely oral agreement is invalid in these cases.
Is a commission-free property automatically cheaper?
No. “Commission-free” only states who bears the broker’s costs. The purchase price may already include the saved commission. Therefore, always compare the overall package of purchase price and ancillary costs.
Conclusion: It depends on the perspective
“Commission-free” is not a seal of approval, but an indication of who bears the broker’s costs. Usually, it means that the buyer does not have to pay a brokerage fee – either because the property is being sold privately or because the seller assumes the commission alone. Legally, the consumer buyer is protected by the equal-sharing principle when purchasing an apartment or single-family house anyway. Therefore, when reading a listing, focus less on the label and more on the two decisive questions: Is a broker involved – and does the overall package of price and ancillary costs add up?