Management
Brand & acquisition
Sales
Team & operations
AI
Where will your office be in three years? The answer should be a plan.
You run a business. Your calendar says otherwise.
Do you know your KPIs? Or just your bank balance?
People hire people. What do you stand for?
Mandates by accident are not a business model. Planned ones are.
You have enough leads. You just don’t convert them.
The first meeting decides. Not the commission.
From brochure to notary. Without surprises.
After the notary is before the next mandate.
Finding good agents is hard. Keeping them is harder.
If your business knew everything it knows …
The right tools, properly connected.
AI systems? Of course.
Automate chaos and you just get faster chaos. So processes come first.
A team that never sleeps. Yours keeps the final say.
If your business knew everything it knows …
Glossary
From sole agency to AI agent: explained briefly and clearly.
General information, not legal, tax or financial advice. As of November 2026. Check before using it in an individual case and have it reviewed by a professional where necessary. Further information: notes on content, templates and liability.
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Mandates & distinctions
| Mandate | Agent’s duty to act | Other agents allowed? | Owner may sell privately? | Typical term | Form / special feature |
|---|---|---|---|---|---|
| Simple brokerage mandate | No | Yes | Yes, without commission | Open-ended, usually cancellable at any time | For a flat or single-family house: text form (§ 656a BGB) |
| Sole agency | Yes | No | Yes, usually without commission | Often 3 to 6 months; 6 months generally appropriate (Federal Court of Justice) | Also possible in standard terms (AGB) |
| Qualified sole agency | Yes | No | No, prospects are referred to the agent | Agreed individually, often as for sole agency | Only by individual agreement, not effective in standard terms (AGB) |
Simplified overview. What exactly applies depends on the individual contract.
The owner instructs an agent but may also instruct other agents and sell privately. The agent is not obliged to act. Commission is only earned if a contract comes about through the agent’s work. The mandate can usually be cancelled at any time.
Legal basis: § 652 BGB
The owner instructs only one agent for a set period. In return, the agent must actively work on the sale. The owner may usually still sell privately, without commission. The Federal Court of Justice regards a six-month commitment as generally appropriate.
Case law: Federal Court of Justice, 28 May 2020, I ZR 40/19
A sole agency with additional duties for the owner: they do not sell privately, refer their own prospective buyers to the agent and involve the agent in negotiations. These duties depart from the statutory model of the brokerage contract. They can therefore only be agreed individually, not effectively in standard terms (AGB).
Basis: § 307 BGB, case law on referral and involvement clauses
Simple brokerage contracts have no fixed term. For sole agencies, three to six months are common. An automatic extension of three months at a time can be effective even in standard terms if the option to cancel is clearly set out in the contract itself.
Case law: Federal Court of Justice, 28 May 2020, I ZR 40/19
Commission
The agent’s fee, often a percentage of the purchase price. It is only earned on success and only if three conditions are met: an effective main contract such as the purchase contract, proof of the opportunity or brokering by the agent, and a causal link between the two. If the purchase contract is subject to a condition precedent, commission can only be claimed once the condition is met. Expenses are only reimbursed if this was agreed.
Legal basis: § 652 BGB
Commission paid to the agent by the seller as the client. The offer is then usually commission-free for buyers. When a flat or single-family house is sold to a consumer, the rules on sharing and passing on commission also apply.
Legal basis: §§ 652, 656c, 656d BGB
Commission paid to the agent by the buyer. When a consumer buys a flat or single-family house: if the agent acts for both sides, both pay the same amount. If the seller passes commission on to the buyer, the buyer bears at most half. If only the buyer instructed the agent, for example with a search mandate, the buyer pays the commission alone.
Legal basis: §§ 656b, 656c, 656d BGB
Since 23 December 2020, the following applies when a flat or single-family house is sold to a consumer: if the agent acts for both seller and buyer, commission can only be claimed from both in the same amount. If the agent works for one side free of charge, nothing can be claimed from the other side either. A brokerage contract that deviates from this is void. Multi-family houses, undeveloped plots and commercial property are not covered.
Legal basis: §§ 656b, 656c BGB
When a flat or single-family house is sold to a consumer: if only one side has a brokerage contract, it can only pass commission on to the other side if it pays at least the same amount itself. The other side’s share only becomes due once the client’s payment has been proven. If the buyer is to bear everything, the agreement is void in its entirety, according to the Federal Court of Justice.
Legal basis: § 656d BGB; Federal Court of Justice, 6 March 2025, I ZR 138/24
A brokerage contract for the purchase of a flat or single-family house requires at least text form. An email is sufficient, a verbal agreement is not. This applies whether or not the buyer is a consumer. Without text form, the contract is usually void and there is no claim to commission.
Legal basis: § 656a BGB, § 126b BGB
The term has two meanings. First, how commission is divided between the buyer and seller side; for the sale of a flat or single-family house to a consumer, this is regulated by law. Second, the internal split between a brokerage and its agent, or between two agents in a joint transaction. This internal split is freely agreed.
Legal basis (first meaning): §§ 656c, 656d BGB
Two agents work together on one property, often one on the seller side and one on the buyer side. They split the commission according to an agreement made in advance. Clear arrangements matter: who takes on which tasks, who talks to which client and how the commission is split.
A referrer passes on a contact, for example a tip about an owner who wants to sell. They only connect the person with the agent and do not negotiate; for this, no licence under § 34c GewO is needed. If, however, they name a specific property and contracting party to prospects themselves, or take part in negotiations, they may count as an agent in the individual case and need the licence. They should only pass on a person’s data if that person has agreed beforehand.
Legal basis: § 34c GewO, Art. 6 GDPR
A written agreement between agent and referrer creates clarity: what counts as a tip, when the fee becomes due and how much it is. Usually it is only paid once the tip leads to a mandate or a successful sale. For private individuals, occasional referral fees are generally other income under § 22 no. 3 EStG. They remain tax-free if such income is below 256 euros in the year; from 256 euros, the entire amount is taxable. Please clarify tax questions with your tax adviser.
Legal basis (tax): § 22 no. 3 EStG
When rental flats are brokered, whoever instructs the agent pays, in practice usually the landlord. The agent may only charge the flat seeker commission if the agent obtains the flat from the landlord solely because of the seeker’s search mandate; this contract requires text form. If the agent manages the flat, according to the Federal Court of Justice no commission is due from either tenant or landlord.
Legal basis: § 2 (1), (1a) and (2) WoVermittG; Federal Court of Justice, 21 May 2026, I ZR 224/25
The agent acts for seller and buyer at the same time. This is allowed if it does not contradict the contract and the agent remains neutral towards both sides. If the agent acts for the other side in breach of the contract, the claim to commission is lost. When a flat or single-family house is sold to a consumer, the equal-split principle also applies.
Legal basis: §§ 654, 656c BGB
The agent shows the client an opportunity to conclude a contract, usually a specific property together with the potential contracting party. The client then negotiates directly. Proof of the opportunity is enough for commission if the contract comes about as a result.
Legal basis: § 652 BGB
The agent actively works on the future contracting party to bring about the deal, for example by negotiating price and terms. Many brokerage contracts cover both introduction and negotiation. The contract sets out which activity triggers commission.
Legal basis: § 652 BGB
So that the agent can prove the claim to commission, the agent documents the introduction or brokering: which property was named to whom and when, together with the owner or the person authorised to negotiate. Common records are a confirmation from the prospect, such as a signed confirmation of introduction or an email, plus evidence of first contact, brochure dispatch and viewing. Timing matters: if the client already knew about the opportunity, there is usually no causal link; however, it is the client who has to prove this prior knowledge. It helps both sides to clarify any prior knowledge at the very first contact.
What an AI agent can take over here: Filing first contact, brochure dispatch and confirmations in the CRM automatically with the date, and following up on missing confirmations.
Legal basis: § 652 BGB
The agent agrees not to offer a property to anyone else for a period, often for a fee. In 2023 the Federal Court of Justice ruled that such a fee in standard terms, which is not refunded under any circumstances, is void, and the agent must repay it. A reservation does not replace the purchase contract. Check such agreements carefully in each individual case.
Case law: Federal Court of Justice, 20 April 2023, I ZR 113/22
Everyday brokerage
Winning new mandates, above all from owners who want to sell or let. This includes referrals, advertising, networking, valuation requests and contact with past clients. Without mandates there is nothing to offer and no commission.
What an AI agent can take over here: Answering enquiries around the clock, pre-qualifying them and proposing appointments for the owner meeting.
Systematic work in a fixed area, such as a neighbourhood. The agent becomes known there through regular presence: market reports, events, letters and personal contacts. The aim is to be approached early whenever someone in the area plans to sell.
What an AI agent can take over here: Preparing market reports for the area, maintaining contacts and sending reminders when actions are due.
A network of people who regularly deal with owners, such as banks, tax advisers, property managers, tradespeople, funeral directors or law firms. It grows through personal contact, reliable work and regular exchange, not through one-off requests. Some professions have limits: under their professional rules, lawyers and tax advisers may not give or accept benefits for referring work, and notaries may not broker property transactions. Before paying any fee, clarify what applies to the profession in question.
What an AI agent can take over here: Reminding you of contacts that are due, recording conversations in the CRM and keeping contact details up to date.
Professional rules: § 49b (3) BRAO, § 9 StBerG, § 14 (4) BNotO
The first in-depth conversation with the owner. It covers goals, timeframe, price expectations, documents and the condition of the property. Ideally it ends with a mandate and an agreed marketing strategy.
What an AI agent can take over here: Requesting documents in advance, preparing a briefing for the meeting and transferring the notes to the CRM.
The plan for how a property is offered: target group, asking price, channels, timeline and type of viewings. It is agreed with the owner and adjusted when demand calls for it.
What an AI agent can take over here: Drafting ad copy for different channels and summarising demand for the owner every week.
An estimate of market value by the agent, often as part of acquisition. It is based on comparable properties, location, condition and the market. It is not a formal market value appraisal. For inheritance, divorce or court, an appraisal is usually required.
What an AI agent can take over here: Gathering comparable data and preparing a draft of the valuation document.
A detailed appraisal of a property’s market value, prepared by qualified experts using set methods. It is used, for example, for inheritance, divorce, tax matters or in court. It is chargeable and considerably more extensive than a valuation by the agent.
Recording all data and documents for a property before marketing: floor areas, year of construction, features, land register extract, energy performance certificate and, for condominiums, the declaration of division and minutes of owners’ meetings. Mistakes at this stage affect the brochure, price and liability.
What an AI agent can take over here: Spotting missing documents, requesting them from the owner and entering the data in the CRM.
The description of a property for prospective buyers or tenants, with photos, floor plans, location, data and price. All details must be correct, and the mandatory energy certificate details are part of it. A good brochure answers the important questions before they are asked.
What an AI agent can take over here: Creating a draft text from the property data. Your team reviews and approves it.
A document on a building’s energy demand or consumption. If an energy performance certificate exists when an ad is placed in commercial media, the ad must contain mandatory details: type of certificate, energy demand or consumption, main energy source for heating and, for residential buildings, year of construction and efficiency class. Sellers, landlords and agents are responsible if they place the ad. From 1 January 2027, further details are added, such as the certificate’s date of issue.
Legal basis: § 87 Building Energy Act (GEG, to become the GModG)
The appointment at which prospective buyers or tenants see the property, individually or as a group viewing. Good preparation means: documents ready, questions clarified in advance, feedback collected afterwards. A short summary for the owner after each viewing builds trust.
What an AI agent can take over here: Coordinating appointments, sending reminders and collecting feedback from prospects.
A property that has already been built and used, as opposed to a new build. For existing properties, condition, past modernisation, complete documents and possible renovation obligations are key topics for buyers and financing.
A purchase contract for land, a house or a condominium must be notarised. At the notary appointment, the contract is read out, explained and signed. Buyers who are consumers should usually receive the draft two weeks in advance.
What an AI agent can take over here: Compiling documents for the notary, coordinating dates and reminding everyone involved.
Legal basis: § 311b BGB, § 17 (2a) BeurkG
The record made when the property is handed over to the buyer or tenant. It notes meter readings, keys handed over, condition and defects. If both sides sign, later disputes are easier to resolve.
What an AI agent can take over here: Preparing a template, assigning photos and sending the report to everyone involved.
Law & duties
Anyone who brokers contracts for land, residential or commercial premises on a commercial basis, or shows the opportunity to conclude them, needs a licence. Depending on the federal state, the responsible body is, for example, the chamber of commerce (IHK) or the trade office. Requirements include reliability and orderly financial circumstances. If they are met, there is a right to the licence.
Legal basis: § 34c (1) and (2) GewO
Agents are obliged entities under the Anti-Money Laundering Act: always for sales, and for lettings from a monthly net rent of 10,000 euros. They need risk management with a documented risk analysis. Records are kept for five years, and suspicious cases are reported to the Financial Intelligence Unit (FIU).
Legal basis: §§ 2 (1) no. 14, 4 et seq., 8, 43 GwG
For sales, agents must identify both buyer and seller as soon as there is serious interest in concluding the deal. For individuals this is usually done with a valid ID document; for companies, the beneficial owner must also be identified. If identification is not possible, the business relationship must not be continued.
Legal basis: §§ 10, 11 GwG
If a consumer concludes a brokerage contract by email, phone, via the website or outside business premises, they usually have a 14-day right of withdrawal. Without proper information on the right of withdrawal, the period extends to up to one year and 14 days. After an effective withdrawal, the client generally owes no commission. Compensation for services already provided is only possible if the client was properly informed and expressly asked the agent to start before the period ended.
Legal basis: §§ 312b, 312c, 355, 356, 357a BGB; Federal Court of Justice, 7 July 2016, I ZR 30/15 and I ZR 68/15
Agents process a great deal of personal data: contacts, enquiries, ID copies, financing documents. The GDPR requires a legal basis, informing the people concerned, data minimisation and deletion once data is no longer needed. If you use service providers or AI tools, you usually need a data processing agreement.
Legal basis: Art. 5, 6, 13, 28 GDPR
Approaching people with whom there is no contact yet. Advertising calls to consumers are only allowed with their prior express consent, which must be documented and kept for five years. For businesses, presumed consent is enough. Advertising by email, text message or messenger generally requires prior express consent. Letters and flyers are usually allowed unless the recipient has objected or has a “no advertising” note on the letterbox. Unannounced doorstep visits are sensitive and disputed in individual cases. Unlawful advertising calls to consumers can be fined up to 300,000 euros.
Legal basis: §§ 7, 7a, 20 UWG
Office & processes
Customer relationship management: the central database for contacts, properties, enquiries and activities. A well-kept CRM shows who needed what and when, and what needs to happen next. It is the foundation for almost every automation.
What an AI agent can take over here: Cleaning up duplicate entries, adding call notes and suggesting old contacts to get back in touch with.
A contact with potential interest, such as an enquiry about a property, a valuation request or a referral. A lead is not yet a mandate. What matters is how quickly and how well you follow up.
What an AI agent can take over here: Replying to new leads immediately and transferring them to the CRM with all details.
Assessing how serious and how suitable a lead is: timeframe, budget or financing, motive and decision-making authority. This lets the team focus on contacts with real prospects.
What an AI agent can take over here: Asking the key questions, evaluating the answers and ranking the lead by priority.
The overview of all open opportunities by stage, such as first contact, valuation, mandate, marketing and notary. It shows where things stall and what revenue can be expected in the coming months.
What an AI agent can take over here: Updating stages automatically and flagging opportunities that have stalled for a long time.
A reminder to get back in touch with a contact at a set time, for example three months after a valuation. Without follow-up reminders, many opportunities are lost because nobody follows up.
What an AI agent can take over here: Preparing or sending a suitable message at the right time.
Measurable values that show how an office is performing, such as the number of valuations, the ratio of valuations to mandates, time on market or commission per mandate. Looking at key figures regularly reveals bottlenecks early.
What an AI agent can take over here: Collecting key figures from the CRM and calendar and summarising them in a weekly report.
Introducing new agents and staff to the job: tools, processes, templates and contacts. Clear onboarding shortens the time until someone does good work on their own.
What an AI agent can take over here: Answering questions about processes and guiding new colleagues through their first weeks.
An agent’s personal brand: what the person stands for, how they present themselves and how they are perceived, online and in person. Owners often choose a person they trust. The personal brand and the office brand complement each other.
What an AI agent can take over here: Preparing draft posts in your own tone of voice. You decide what is published.
AI & digital
An AI system that carries out a task in several steps, for example reading an enquiry, checking data in the CRM, replying and proposing an appointment. It works according to set rules and only with the tools it has access to. Important decisions stay with people.
A defined sequence of steps that starts with a trigger, for example: new enquiry, CRM entry, reply, reminder after three days. Workflows make processes repeatable, no matter who is in the office.
Recurring tasks run according to fixed rules without manual effort. Automation suits clear, frequent processes. People remain responsible for conversations, negotiations and advice.
The instruction given to an AI: what it should do, with which information and in what form. The clearer the prompt, the more useful the result. In AI agents, prompts are stored in advance and tested before use.
A program that answers questions in a dialogue, for example on a website or in a messenger. Simple chatbots follow fixed answers; AI chatbots phrase their replies freely. Users should be able to tell that they are talking to an AI.
Generative engine optimisation: preparing content so that AI search systems find it, understand it and cite it as a source. This includes clear answers to real questions, structured data and consistent information across the web. More and more owners ask an AI their questions first.
A defined connection through which programs exchange data, such as the CRM, calendar and property portals. Through interfaces, AI agents can read and enter data without anyone retyping it. How good an interface is often determines the effort a project takes.
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