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Germany Seeks to Ease Burden on Home Buyers by Splitting Fees

Germany Seeks to Ease Burden on Home Buyers by Splitting Fees

(Bloomberg) --

Germany, a country at the forefront of efforts to protect renters, now wants to ease the burden on home buyers.

The government is seeking to lower the cost of acquiring property by splitting the broker’s fee between the purchaser and the seller. Until now, the buyer frequently paid all of those costs, which in Berlin can amount to more than 7% of the price. In many German states, it’s already common practice to divide the fees, according to property website immoverkauf24.de.

“Buyers should be better protected,” the government said Wednesday, adding that those who decline to pay the fee often jeopardize their chances of acquiring a property.

After rents in cities including Berlin and Frankfurt rose dramatically in the past decade, Germany has mainly sought to shield tenants. The government also announced that it will extend a measure that restricts rent increases until 2025.

Katrin Lompscher, Berlin’s housing senator and a Left Party member, has proposed a five-year rent freeze and a plan to cap rents at levels that relate to the age of individual properties.

To contact the reporter on this story: Andrew Blackman in Berlin at ablackman@bloomberg.net

To contact the editors responsible for this story: Sree Vidya Bhaktavatsalam at sbhaktavatsa@bloomberg.net, Chris Reiter

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