If a property is foreclosed and the bank commissions a real estate agent to do so, it may not pay the brokerage fee from the proceeds of the foreclosure sale, but must pay for it itself. This is the result of a ruling by the Frankfurt Higher Regional Court (Case No.: 13 U 226/20).
In the present case, the bank had hoped to achieve higher sales proceeds by commissioning a real estate agent. This was because the market value of the property had been estimated by a court-appointed expert at 660,000 euros, but the bank's claim on the debtor amounted to around 885,000 euros.
In the end, the estimated market value was far exceeded with a bid of over one million euros. The bank paid out the excess proceeds to the property owner, but deducted the brokerage fee from this. According to the court, however, this is not permissible because the property owner did not commission the real estate agent himself.
Source: anwalt.de/Az.: 13 U 226/20
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