Broker commissions: National Council decides to make things easier for people looking for an apartment

Clarifications in the billing law for heating and cooling costs were also decided

Vienna (PK) – With a large majority, the National Council today gave the go-ahead for the so-called first client principle for brokerage commissions. In the future, the commission from real estate agents when arranging rental apartments must be paid by the client – in most cases this is the landlord. In addition to this simplification for those looking for an apartment, the MPs have decided on clarifications in the Heating and Cooling Costs Billing Act, which particularly affect the information obligations of the seller. Demands made by the SPÖ in the course of the debate remained in the minority.

Brokerage fees newly regulated from July

In the future, apartment seekers will only have to pay for the commission of the real estate agent when arranging rental apartments if they have also given the order to search. From July 1, 2023, the “Principle of the first customer” will apply as a result of the Broker Act Amendment Act, which was passed with a large majority. In most cases, the landlords as clients will have to pay the commission. Circumvention transactions are to be prevented as far as possible and non-compliance is to be subject to sanctions, as the government bill provides.

The responsible Minister of Justice, Alma Zadić, was pleased with the implementation of the ordering principle for brokerage fees. This finally puts an end to an injustice that has been going on for decades. So far, people looking for a flat have often been obliged to pay for a service that they have not used. From their point of view, there is comprehensive protection against circumvention, so that the fees cannot be passed on to the tenants through the back door in the future. According to Zadić, an evaluation that is planned by law in 2027 will show how the regulations work in practice.

Ruth Becher (SPÖ) emphasized that the present amendment does not implement an orderer principle and accused the government of “selling a disgrace”. There is explicit talk of a “principle of first ordering”. According to Becher, circumventions are still possible and the law is “broken”. By means of an amendment, she submitted an alternative proposal for an ordering principle. With the application, she also wanted to establish that agreements by which the commission is passed on from landlords to tenants are invalid. She also proposed fines of up to €25,000 for violations. The amendment did not find a majority.

His parliamentary group sees the good intentions, but also the poor implementation of the law, said Maximilian Lercher (SPÖ), who took the opportunity to appeal to the coalition for a rent brake.

With the change in broker commissions, the Greens had achieved something that federal governments with Red participation had not brought together for many years, said Sigrid Maurer (Greens). Her parliamentary group sees housing as a fundamental right, which is why she is campaigning for relief for those looking for an apartment. The elimination of brokerage fees for tenants would greatly relieve young people and people with low incomes in particular. Overall, according to calculations, a relief of more than €55 million per year is assumed. Nina Tomaselli (Greens) was also pleased with this “housing policy achievement”. She accused the Social Democrats of unacceptably unsettling tenants with untrue allegations.

Johann Singer (ÖVP) described the amendment as a “paradigm shift”. With today’s decision, a project that had been agreed in the government program is being implemented. It was important for his group to create clarity for everyone involved as to what had been achieved with the provisions. Such a paradigm shift nevertheless challenges everyone involved, especially the brokers, according to Singer. But he has confidence in the industry that it will handle the changeover well. His ÖVP colleague Johanna Jachs emphasized the relief, especially for young people such as students and apprentices.

Yannick Shetty (NEOS) expressed approval “without euphoria”. His parliamentary group agrees because the current legal situation is unsatisfactory, especially for young people. However, he fears that this will increase the monthly rent on the free rental market. He is also critical of the evaluation, which is only scheduled for 2027. Philipp Schrangl (FPÖ) also signaled approval, but described the change in brokerage fees as a “drop in the bucket” when it comes to housing costs.

Clarifications in the billing law for heating and cooling costs

An application by the coalition factions, which was also approved by a large majority, brings clarifications to the billing law for heating and cooling costs. This standardizes the obligation to provide information when determining and calculating the proportion of consumption. At the request of the recipient, the seller must in future also transmit the billing information (including consumption or reading values) to third parties.

Nina Tomaselli (Greens) described the law and the now improved transparency in the billing of heating and cooling costs as “immanently important”. Because there are several meter reading companies in Austria that have used their market power in the past and, for example, agreed on prices. On the other hand, only “radical transparency” would help, Tomaselli was convinced. This will be created with the existing adjustments. Michaela Steinacker (ÖVP) also emphasized that it is crucial that customers know what they are paying for and to what extent. The amendment brings a significant increase in transparency and is an important step in terms of consumer protection.

For Johannes Margreiter (NEOS), the amendment serves to protect the climate and at the same time brings advantages for the people concerned. However, he also combined his praise and approval with the urgent demand to make the housing laws climate-friendly in a coordinated package.

Andreas Kollross (SPÖ) spoke of a first step in the right direction. The present amendment to the law is only about small improvements for consumers and not about creating real transparency. He called for further improvements in the heating cost billing law and introduced a motion for a resolution. In addition to measures to improve the traceability of consumption values and costs, the Social Democrats also advocated that apartment users should under no circumstances be charged repair or construction costs for heating systems. The motion remained in the minority.

Christian Lausch from the FPÖ completely rejected the application of the coalition factions. The changes do not go far enough for his group, he said, and called for the abolition of the monopoly of meter reading companies. (Continued National Council) kar

NOTE: Meetings of the National Council and the Federal Council can also be followed via live stream and are available as video-on-demand in Parliament’s media library.