Legal Affairs

ACM imposes heavy fines for prohibited rental agency fees

A rental agent already acting on behalf of the landlord may not charge brokerage fees to the consumer-tenant — regardless of whether they are called “administrative” or “contract fees”. The ACM fined three rental agents who did so anyway. Additional services...

Published on May 27, 2021 by MKBjuristen.nl
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A rental agent already acting on behalf of the landlord may not charge brokerage fees to the consumer-tenant — regardless of whether they are called “administrative” or “contract fees”. The ACM fined three rental agents who did so anyway. Additional services may only be charged if they are genuinely optional and the tenant expressly agrees to them.

The Authority for Consumers and Markets (ACM) fined three rental intermediaries who wrongly charged brokerage fees to consumers. The ACM monitors unfair trade practices and enforces rules that protect consumers.

Bilateral mediation: the landlord pays

A rental agent mediates between tenant and landlord. If the agent is already acting on behalf of the landlord (and is therefore not engaged by the consumer tenant), the Civil Code stipulates that the costs for his services are for the account of the landlord. In that case, the agent may only charge brokerage fees to the landlord. This “prohibition on double brokerage fees” applies only to a consumer tenant, not to a business tenant.

What did the three mediators do?

Despite this ban, three intermediaries charged consumers fees between 150 and 400 euros, sometimes under the guise of “administrative costs” or “contract costs”. According to them, these concerned additional services (assistance with contracts, parking permits) and therefore not prohibited mediation fees.

The ACM ruled otherwise: the name of the costs does not matter. They were indeed brokerage fees, because the additional services were not optional but were presented as a condition for the rental contract. The ACM had already published guidance on this in August 2020: additional services must be optional, separate from the brokerage agreement, and the consumer must be clearly informed about them and expressly consent to them.

The fines

The ACM can normally impose fines of 150,000 to 600,000 euros, or, if necessary, up to 7.5% of annual turnover. In this case, the ACM deemed those amounts disproportionate and set lower, but deterrent, fines: an intermediary from Deventer who had earned virtually nothing received 5,000 euros, while the other two received 80,000 and 100,000 euros. The ACM monitors the real estate industry and announced that, starting in June 2021, it will also take action against greenwashing — falsely presenting oneself as more sustainable.

Frequently Asked Questions

Is a rental agent allowed to charge fees to the tenant?

Not if he is already acting on behalf of the landlord and the tenant is a consumer. In that case, the brokerage fees are for the landlord; a different name does not change that.

Is an intermediary allowed to charge for additional services?

Only if those services are truly optional, separate from the mediation, and the consumer has been clearly informed about them and has expressly agreed to them.

Does the ban also apply to commercial tenants?

No. The ban on double brokerage fees protects consumer tenants. These rules do not apply to business tenants.

Does your mediation practice comply with the rules?

The ACM can impose substantial fines. The legal experts at MKB Juristen review your working methods and terms and conditions. View our expertise in real estate law or contact us.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

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SME Lawyers at the Chamber of Commerce Source: Chamber of Commerce 2019
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