Whether you sell or let your property is one of the most important decisions an owner faces, and both paths follow strict German rules. This checklist guides you through the decision, the documents you need, the energy certificate under the German Buildings Energy Act (GEG), the split broker commission under §§ 656c and 656d BGB, capital gains tax under § 23 EStG and the orderer principle when letting. It is written for international owners who need German law explained clearly so they can avoid formal errors, avoidable tax and void commission agreements.
Selling or letting: the decision
The question is rarely just “which earns more?” but “which fits my life and wealth plan?”. Selling frees up capital immediately, ends all owner and landlord obligations, and makes sense if you need the capital elsewhere or want no management work. Letting generates ongoing rental income, lets you share in any future increase in value and can be tax-efficient, but it ties up capital and brings obligations such as maintenance, the service charge statement and the letting risk.
| Criterion | Selling | Letting |
|---|---|---|
| Liquidity | Immediate inflow of capital | Ongoing, smaller income |
| Value | Gain is realised now | Share in future value growth |
| Effort | One-off, then over | Ongoing (management, upkeep) |
| Tax | Capital gains tax possible (§ 23 EStG) | Rental income is taxable |
| Risk | No ongoing risk | Rent default, vacancy, tenancy law |
Example: An owner bought a Frankfurt condominium eight years ago and has let it ever since. Selling now at a profit triggers capital gains tax, because the ten-year period of § 23 EStG has not yet expired. Waiting two more years, or living in the flat before selling, can make the gain tax-free.
Document checklist
Complete documents speed up a sale or letting and build trust with interested parties. Gather these early.
| Document | Sale | Letting | Source |
|---|---|---|---|
| Current land register extract | required | helpful | Land registry |
| Energy certificate | mandatory (§ 80 GEG) | mandatory (§ 80 GEG) | Issuer/energy adviser |
| Living-space calculation | required | required | Building documents |
| Site plan and floor plans | required | helpful | Building file |
| Declaration of division | required for condo | required for condo | Property manager/registry |
| Owners meeting minutes | required for condo | helpful | Property manager |
| Annual statements, budgets | required for condo | helpful | Property manager |
| Maintenance reserve balance | required for condo | - | Property manager |
For a condominium the property manager supplies the core WEG documents: the declaration of division, recent minutes, the latest annual statements with budgets and the balance of the maintenance reserve. Buyers and tenants are entitled to expect this information, and a well-documented property tends to sell faster. You can read more about preparation in our property sales section.
Energy certificate: mandatory under the GEG
The energy certificate is not optional when selling or letting. Under § 80 GEG a valid energy certificate must exist when a building or flat is sold, let, leased or let on a finance lease. The seller, landlord or the engaged broker must show interested parties the energy certificate or a copy at the latest during the viewing; if no viewing takes place, it must be shown without delay on request. After the contract is concluded the certificate (or a copy) must be handed over to the buyer or tenant.
In addition, § 87 GEG requires mandatory disclosures in commercial property advertisements where an energy certificate is already available when the advertisement is placed. The advertisement must then include in particular:
- the type of certificate (demand-based or consumption-based)
- the final energy demand or final energy consumption
- the main energy source for heating
- for residential buildings additionally the year of construction and the energy efficiency class
Missing or incorrect mandatory disclosures can be penalised as an administrative offence. Plan to obtain the certificate before you advertise.
Price and market value assessment
A realistic asking price determines both how long a sale takes and the proceeds. A sound assessment draws on location, condition, year of construction, living space, fit-out and energy condition, as well as comparable prices actually achieved. Official valuation committees (Gutachterausschüsse), standard land values (Bodenrichtwerte) and reputable market reports provide orientation. An asking price set too high often leads to a long marketing period and later reductions; one set too low gives away proceeds. For letting, the local comparable rents and the applicable tenancy law are decisive. Experienced agents handle a well-founded valuation - see our real estate agency section.
Broker commission when selling to consumers
Since 23 December 2020 clear commission rules apply to the sale of flats and single-family houses to consumers, preventing the buyer from being burdened one-sidedly.
- Acting for both parties (§ 656c BGB): if the broker has both parties to the purchase contract promise a commission, this is only valid in an equal amount. If the broker waives the fee towards one party (acting free of charge), the broker cannot demand a commission from the other party either. Contracts that breach this are void
- Acting for one party (§ 656d BGB): if only one party engaged the broker, an agreement obliging the other party to pay is valid only if the engaging party remains obliged to pay at least an equal amount. The buyer, as a consumer, therefore bears at most half of the commission
This half-split applies only where the buyer is a consumer and the object is a flat or single-family house. In these cases broker contracts require text form (§ 656b BGB).
Example: A seller agrees a commission of 3.57 percent (including VAT) with the broker. If the seller wants to pass it on to the buyer, the seller can pass on at most half (1.785 percent) and must bear at least the same amount. A clause imposing the full commission on a consumer buyer is void.
Tax on a sale: the speculation period
Selling a private property may trigger income tax on the gain, the so-called speculation tax. Under § 23 EStG a taxable private disposal arises where no more than ten years lie between acquisition and disposal. If the property is sold after the ten-year period has expired, the gain is tax-free.
An important exception applies to owner-occupation. The sale is also tax-free within the ten years if the property was
- used exclusively for the owner’s own residential purposes between acquisition (or completion) and disposal, or
- used for the owner’s own residential purposes in the year of disposal and the two preceding years
The precise calculation of the gain and whether the owner-occupation exception applies belong in the hands of a tax adviser. This guidance does not replace tax advice.
Letting: orderer principle, creditworthiness, contract, handover
If you let rather than sell, a separate set of duties applies.
Orderer principle (§ 2 WoVermittG): when brokering rental flats, the party that engaged the broker owes the commission. The broker may charge the prospective tenant only where the broker acts exclusively on the prospective tenant’s instruction; passing on broker costs caused by the landlord to the tenant is void. In practice the landlord therefore almost always bears the commission.
Creditworthiness check: before concluding the contract it is customary to obtain a self-disclosure form, proof of income and, where appropriate, a credit report. Observe data protection and ask only permissible questions.
Tenancy agreement: a written, legally sound tenancy agreement with clear terms on rent, advance service charges, deposit and decorative repairs protects both sides. To understand how the later service charge statement works, see our property letting section.
Handover protocol: a detailed protocol with meter readings, key count and the documented condition of the flat at move-in and move-out prevents later disputes over damage and the deposit.
After move-in: with the letting, the ongoing work begins - rent collection, service charge statements, maintenance. If you prefer not to handle it yourself, you can hand it to a rental management service in Frankfurt and Rhine-Main.
How property management with brokerage support helps
Selling and letting interlock closely with day-to-day management. A provider that combines property management and brokerage can deliver the whole process from a single source: it obtains the WEG documents without friction, knows the condition and history of the property, ensures legally compliant advertisements with correct energy certificate figures, screens interested parties and accompanies you up to the notary appointment or key handover. For let condominiums in particular this saves time and avoids errors at the interface between condominium law and sales or tenancy law.
Frankfurt and the Rhine-Main region
Frankfurt am Main is one of Germany’s most sought-after property markets, shaped by the financial sector, its international character and continued inflow of residents. The surrounding region - Offenbach, Bad Homburg, Eschborn or the Hochtaunuskreis - also benefits from this momentum. For owners this usually means good marketability, but at the same time a high price level and close scrutiny by buyers and tenants. A robust local valuation and complete documents are especially valuable here. Specific market figures change constantly and should be obtained up to date before any decision.
Whether selling or letting, orderly preparation with complete documents, a valid energy certificate, a legally sound commission agreement and a sober tax assessment protects you from costly mistakes - and that is exactly where professional support comes in.
Commission, energy certificate, land charge deletion and capital gains tax: work out what actually remains.
Sources
- § 656c BGB - broker commission when acting for both parties (gesetze-im-internet.de)
- § 656d BGB - agreements on broker costs
- § 23 EStG - private disposal transactions
- § 2 WoVermittG - housing brokerage (orderer principle)
- § 80 GEG - issuing and use of energy certificates
- § 87 GEG - mandatory disclosures in property advertisements
Editorial responsibility: digo.immo Verwaltung & Invest - certified residential property manager under § 26a WEG (IHK Frankfurt), licence under § 34c GewO. About the certification
This article provides general information only and does not replace individual legal advice. Legal status: 13/07/2026; laws and case law may change. No warranty is given as to completeness, accuracy or timeliness. When in doubt, please seek qualified advice.