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Real Estate Law

Brokerage Clauses in Real Estate Purchase Agreements: Berlin Higher Regional Court Protects Tenants with Statutory Pre-Emption Rights

KG Berlin, Judgment of 5 February 2026 – 10 U 52/24

The Berlin Higher Regional Court (Kammergericht) has invalidated a contractual structure that has long been widely used in notarised real estate transactions. Where a tenant exercises a statutory right of first refusal, a so-called constitutive brokerage clause cannot be used to impose the full brokerage commission on the tenant if the broker has agreed to act without remuneration vis-à-vis the seller.

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Real Estate Law

Developer Agreement: Federal Court of Justice Tightens Requirements for Powers of Attorney to Amend the Declaration of Division

BGH, Urteil vom 23. Januar 2026 – V ZR 91/25

The Federal Court of Justice has tightened its stance: Powers of attorney authorizing amendments to the declaration of division will only be considered valid going forward if specific and compelling reasons are expressly stated. General or blanket clauses are no longer sufficient.

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Corporate Law

Current Decision on the Redundancy of “No-Compensation Insurance” in the Transfer of Limited Partnership Interests

The Munich Higher Regional Court (OLG München), in its decision dated 23 February 2026 (31 Wx 294/24), held that, as a general rule, commercial register courts may no longer require “no-compensation insurance” when a change of a limited partner is filed for registration by way of singular succession. The amendment of Section 711 of the German Civil Code (BGB) under the MoPeG, effective as of 1 January 2024, has rendered the previous practice obsolete.

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General

Notary Costs for Real Estate Purchases

  • Notary fees for purchasing real estate typically range from approximately 0.6% to 1.5% of the purchase price.
  • Notary fees are prescribed by law and are the same for every notary.
  • The exact amount of the fees depends on how the transaction is structured (e.g. whether a land charge is created or the purchase is handled via a notary escrow account, etc.).
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General

The Costs of Establishing a GmbH

  • The costs of establishing a GmbH typically amount to a low four-figure sum.
  • The amount of the costs depends largely on whether support from legal and tax advisors is required.
  • Notary fees for establishing a GmbH, including registration with the commercial register, typically range between EUR 800 and EUR 1,000.
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Real Estate Law

The Federal Court of Justice Clarifies: Technical Rooms Are Eligible for Separate Ownership

The Federal Court of Justice introduces a significant shift in German condominium law: technical rooms such as boiler or metering rooms may now qualify as separate property. Learn what this landmark decision means for property owners and the structuring of condominium declarations.

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