Changed Legal Environment For Real Estate Agents – Improvement Or Setback?

The last year has seen some changes to the legal environment for real estate agents: some unfavourable, like lower caps on commissions paid by lessees, and some favourable, like a recent decision on double agents.

Real-estate agents are often subject to conflicting interests in Austria. On the one hand, they are regularly instructed by the lessor to find a suitable lessee. Also, according to the Austrian Agency Act (Maklergesetz), real estate agents are obliged to prove a so called "deservingness" (Verdienstlichkeit) to the lessor as client. If the agent does not fulfil its obligations, its commission may be reduced or even cancelled. This results in dependency.

On the other hand, real estate agents are bound to observe a high level of fiduciary duties towards the lessee, particularly if they are consumers according to the Austrian Consumer Protection Act (Konsumentenschutzgesetz). Also, real estate agents are usually paid by the lessee, especially when dealing