Application for a licence for real estate agents, loan brokers, property developers, building supervisors and residential property managers

You will need a licence if you wish to offer the following services on a commercial basis:

• Property agency services
• The brokering of loan agreements (excluding consumer mortgages),
• The management of residential property or the common property of flat owners
• The preparation or execution of construction projects, whether on one’s own behalf or on behalf of others.

With this in mind, you must apply for a licence if, for example, you wish to carry out any of the following activities:

• Brokerage of land and rights equivalent to land; brokerage of the sale, encumbrance, letting or leasing of land and flat ownership, as well as contracts relating to mortgages and land charges,
• The letting of commercial premises and residential accommodation, i.e. all types of tenancies, including leases and subletting, and therefore also the letting of flats and rooms (excluding accommodation placement services).
• Loan brokerage (excluding consumer property finance).
• The planning or execution of construction projects using third-party assets (e.g. assets belonging to tenants, leaseholders or other authorised users, or to applicants for rights of purchase or use). In this context, it makes no difference whether you act in your own name vis-à-vis contractual partners (as a property developer) or whether you make it clear that you are acting on behalf of a third party (as a construction manager). This includes, for example, submitting a planning application, commissioning architects and tradespeople, as well as securing and drawing down funding, taking out insurance policies, calculating future rents, etc.
• Management of let flats or the common property of flat owners within the meaning of the Flats Ownership Act. You are considered a property manager, for example, if you

• Implement decisions made by the flat owners and ensure that the house rules are observed;
• take the necessary measures to ensure the proper maintenance and repair of the common property;
• to arrange and receive all payments and services relating to the day-to-day management of the common property;
• manage the funds received.

No authorisation is required in the following cases:

• Credit institutions which have been granted authorisation under the German Banking Act (KWG) and their branches are regarded as undertakings.
• Capital management companies which have been granted authorisation under the German Capital Investment Code.
• Traders who merely arrange loans to finance the sale of goods or the provision of services by them, or who can demonstrate that they provide the opportunity to conclude such contracts,
• Branches of companies with their registered office in another Member State of the European Union which, under the German Banking Act, are authorised to act as intermediaries in loans between credit institutions, provided that their activities under the German Trade Regulation Act are limited to the intermediation of loans between credit institutions and
• the conclusion of contracts relating to the part-time use of residential buildings within the meaning of the Civil Code, or the brokering of such contracts.

To act as an intermediary in relation to consumer property loan agreements, you require a different, separate licence under the Trade Regulation Act. Consumer property loan agreements are loan agreements for consideration between a trader, as the lender, and a consumer, as the borrower.

• § 34c Absatz 2 Nummer 2 Gewerbeordnung (GewO)
• Regulation on Estate Agents and Property Developers (MaBV)
• Housing Allocation Act (WoVermRG)

• A copy of your identity card or passport, together with a certificate of residence, or presentation of these documents in person.

Proof of sound financial circumstances

• If you are resident in Germany, this is usually:
  • Extract from the register of debtors
  • Certificate from the insolvency court
  • Certificate relating to tax matters (issued by the tax office)
• if you are resident abroad: documents from your home country proving that your financial affairs are in order

Proof of the company’s legal form:

• if the company is based in Germany:
  • for companies registered in a register: an extract from the Commercial Register, the Partnership Register or the Co-operative Register
• if the company is based abroad: documents from the country of incorporation proving its legal form

Proof of personal integrity:

• If you are resident in Germany:

• Applying for a certificate of good conduct for submission to a public authority
• Applying for an extract from the Central Trade Register for submission to a public authority

• If you are resident abroad: documents from your country of residence proving your personal integrity

The relevant authority may request further documents in order to verify a person’s reliability.

In the case of legal entities (e.g. GmbHs, corporate entities, AGs, registered co-operatives), you must submit the personal documents for all natural persons authorised to manage the business (e.g. identity documents) or apply for them (e.g. an extract from the Central Trade Register for submission to a public authority in accordance with Section 150(5) of the Trade Regulation Act). For the legal entity, you will also need an extract from the Central Trade Register for submission to a public authority in accordance with Section 150(5) of the Trade Regulation Act.

Partnerships (GbR, KG, OHG, PartG, GmbH & Co. KG) are not, as such, eligible for authorisation. Therefore, each managing partner must obtain authorisation. Please submit a completed application form and all relevant personal documents for each of these individuals.

If you wish to work as a residential property manager, you must also provide proof that you have taken out professional indemnity insurance covering at least EUR 500,000 per claim and EUR 1,000,000 in aggregate for all claims in a year.

Extension of a licence (An existing licence for an individual or business is extended in accordance with Section 34c of the Trade Regulation Act):

If you extend the scope of activities covered by your licence under Section 34c of the Trade Regulation Act (GewO) within three months of the licence being issued, the simplified procedure applies and you are no longer required to submit all the necessary documents.

Documents required for the application to extend the licence for residential property managers:

• Certificate confirming that professional indemnity insurance is in place, in addition to the extended scope of authorisation applied for

If more than 3 months have elapsed since the licence was granted, the following supporting documents and certificates must be submitted with the application for an extension:

• Extract from the Federal Central Register for submission to a public authority (document type 0)
• Extract from the Central Trade Register for submission to a public authority (document type 9)
• Certificate relating to tax matters
• Extract from the register of debtors on the Central Enforcement Portal (Section 882b of the Code of Civil Procedure)
• Confirmation from the insolvency court that the company is not in insolvency
• A current extract from the Commercial Register, where an entry exists

• You possess the integrity required to run a business. As a rule, you do not possess this if you have been convicted within the last 5 years of an offence listed in Section 34c(2)(1) of the Trade Regulation Act (GewO).
• Your financial affairs are in order: no insolvency proceedings have been opened in respect of your assets, nor have any such proceedings been dismissed on the grounds of insufficient assets.
• If you wish to work as a residential property manager, you will need professional indemnity insurance covering at least EUR 500,000 per claim and EUR 1,000,000 for all claims in a year.

• https://bravors.brandenburg.de/verordnungen/mwegebo

Once you have submitted your application and all the necessary documents have been provided in full, the relevant authority will check whether you meet all the requirements.

If you meet all the requirements, you will be granted permission.

You may not start the work until you have received authorisation.

At the same time as the business commences trading, it must be registered with the authority responsible for business registrations in accordance with Section 14 of the Trade Regulation Act (GewO).

Appeal. An appeal may be lodged against a decision rejecting an application or otherwise adversely affecting the applicant. If the appeal is unsuccessful, legal action may be brought before the competent administrative court. The time limit, form and competent authority are set out in the information on legal remedies contained in the decision.

This applies only to estate agents and property managers:

Whilst carrying out your work, you are required to undertake 20 hours of further training within any three-calendar-year period. The same applies, mutatis mutandis, to employees who are directly involved in the activity subject to authorisation. If you have obtained a vocational qualification as a real estate agent or a further training qualification as a certified real estate specialist, the continuing professional development requirement does not commence until three years after obtaining the relevant qualification. You must retain evidence of your continuing professional development for five years and present it to the competent authority upon request.

Under the Estate Agents and Property Developers Regulation, property managers and property developers are required to carry out an annual audit.

As a estate agent, property developer and construction supervisor, you have specific obligations regarding bookkeeping, record-keeping, providing information and reporting.

Just regarding property managers:

You must maintain professional indemnity insurance covering at least €500,000 per claim and €1,000,000 for all claims in a year.

Local regulatory authorities (serial no. 1.17 of Annex 1 to Section 1(1) of the Ordinance on Competences in Trade Law [Trade Law Competences Ordinance – GewRZV]).

The duties of the local public order authorities are carried out by the district offices, the municipalities not belonging to a district, the associations of municipalities, the co-administering municipalities and the cities independent of a district (§ 3 of the Public Order Authorities Act – OBG).

• Estate agents, property developers, construction managers, financial investment brokers