No fee for property viewings

In 2015, the Housing Intermediaries Act (WoVermG) was newly regulated. Among other things, the so-called 'client principle' was introduced, whereby the person who commissions the agent must pay him – as a rule, therefore, the landlord. However, can an agent charge a fee to prospective tenants for a property viewing? The Regional Court (LG) Stuttgart says no.

A property agent demanded a viewing fee of EUR 35.00 from people looking for accommodation. He was commissioned by the landlord and not by the prospective tenants.

In two separate proceedings, the agent was sued for a cease and desist order regarding this practice, one brought by the Wettbewerbszentrale (Competition Centre) and the other by the DMB-Mieterverein Stuttgart und Umgebung e.V. (DMB Tenants' Association Stuttgart and surrounding areas).

The agent defended himself by arguing that the client principle does not apply to him, since he is merely a service provider and not a housing intermediary.

The court's decisions on fees for property viewings

The LG Stuttgart views the agent's conduct as an anti-competitive circumvention of the client principle and prohibited him in both proceedings (judgment of 15.06.2016 – Az. 38 O 73/15 Kfh and judgment of 15.06.2016 – Az. 38 O 10/16 Kfh) from demanding payment from interested parties for the conduct of a property viewing.

The agent must not charge any fees whatsoever for a property viewing. This is what the WoVermG explicitly provides for.

In the view of the Stuttgart judges, it is irrelevant whether the agent understands or describes himself as an agent rather than as a service provider. What is decisive is the actual activity directed towards the property-seeking parties, and this is to be attributed to the brokerage business here.

Conclusion

Although the client principle has applied to housing mediation since 2015, agents attempt to circumvent this through various tricks and thereby extract commissions unlawfully.