Apply for a permit for real estate agents, loan brokers, property developers, construction supervisors and residential property managers
service description
You need a permit if you want to offer your services commercially:
- Real estate brokerage
- The brokering of loan agreements (excluding real estate loans for consumers),
- The management of residential properties or common property of apartment owners
- The preparation or execution of construction projects in one's own name or on behalf of others.
In this sense, you must apply for a permit if you wish to carry out any of the following activities, for example:
- Brokerage of land and rights equivalent to land ownership, brokerage of the sale, encumbrance, rental or leasing of land, condominium ownership and contracts concerning mortgages and land charges,
- Brokerage of commercial premises as well as residential premises, i.e. all types of room rentals including lease and sublease, also apartment and room brokerage (except accommodation brokerage).
- Loan brokerage (excluding consumer real estate financing).
- Planning or executing construction projects using third-party assets (e.g., assets belonging to tenants, lessees, or other beneficiaries, or applicants for acquisition or usage rights). It makes no difference whether you act in your own name vis-à-vis contractual partners (property developer) or whether you indicate that you are acting on behalf of a third party (construction manager). This includes, for example, submitting a building application, commissioning architects and tradespeople, procuring and drawing down financing, taking out insurance, calculating future rents, etc.
- Management of rented apartments or the common property of apartment owners as defined by the Condominium Act. You are considered a property manager, for example, if you
- Implementing decisions made by the homeowners and ensuring the enforcement of the house rules;
- take the measures necessary for the proper maintenance and repair of the common property;
- initiate and receive all payments and services related to the day-to-day management of the common property;
- manage funds received.
No permission is required for:
- Credit institutions that have been granted a license under the German Banking Act (KWG) and whose branches constitute companies.
- Investment management companies that have been granted a license under the German Investment Code.
- Businesses that merely arrange loans to finance the sale of goods or services they provide, or that provide the opportunity to conclude such contracts,
- Branches of companies based in another Member State of the European Union that are permitted to broker loans between credit institutions under the Banking Act, provided that their activity is limited to brokering loans between credit institutions under the Trade Regulation Act and
- the conclusion of contracts for the timeshare use of residential buildings within the meaning of the German Civil Code or the brokering of such contracts.
To broker real estate consumer loan agreements, you need a separate permit under the Trade Regulation Act. Real estate consumer loan agreements are loan agreements for consideration between a business as the lender and a consumer as the borrower.
procedure
Once you have submitted the application and all documents are complete, the responsible authority will check whether you meet all the requirements.
If you meet all the requirements, you will receive permission.
You may only start working once you have received permission.
Simultaneously with the commencement of business activities, the business must be registered with the authority responsible for business registrations in accordance with Section 14 of the Trade Regulation Act (GewO).
requirements
- You possess the reliability required for operating a business. You generally do not possess this reliability if you have been convicted within the last 5 years of an offense listed in Section 34c Paragraph 2 No. 1 of the Trade Regulation Act (GewO).
- You live in orderly financial circumstances: no insolvency proceedings have been opened against your assets or rejected due to lack of assets.
- If you wish to work as a residential property manager, you need professional liability insurance of at least EUR 500,000 for each claim and EUR 1,000,000 for all claims in a year.
What documents are required?
- Copy of identity card or passport with registration certificate, or presentation on site.
Proof of orderly financial circumstances
- usually if you live in Germany:
- Excerpt from the list of debtors
- Certificate of the bankruptcy court
- Certificate in tax matters (from the tax office)
- If you live abroad: Documents from your home country that prove your orderly financial situation
Proof of corporate legal form:
- for company headquarters in Germany:
- For companies registered in a register: extract from the commercial register, the partnership register, or the cooperative register.
- if the company is based abroad: documents from the country of domicile that prove the legal form
Proof of personal reliability:
- If you live in Germany:
- Application for a certificate of good conduct for submission to an authority
- Application for an extract from the Central Business Register for submission to an authority
- If you reside abroad: Documents from your country of residence that prove your personal reliability
To verify personal reliability, the responsible authority may request further documents.
For legal entities (e.g., limited liability companies, corporations, registered cooperatives), you must submit (e.g., personal documents) or request (e.g., an extract from the central business register for submission to an authority pursuant to Section 150 Paragraph 5 of the Trade Regulation Act) the personal documents for all natural persons authorized to manage the business. You will also need an extract from the central business register for submission to an authority pursuant to Section 150 Paragraph 5 of the Trade Regulation Act for the legal entity itself.
Partnerships (GbR, KG, OHG, PartG, GmbH & Co. KG) are not eligible for a permit as such. Therefore, each managing partner requires a permit. 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 of professional liability insurance coverage of at least EUR 500,000 for each claim and EUR 1,000,000 for all claims in a year.
Permit extension (An existing permit for a person / company is extended in accordance with Section 34c of the Trade Regulations):
If you expand the scope of your license under Section 34c of the Trade Regulation Act (GewO) within 3 months of the license being issued, the simplified procedure will apply and you will no longer need to submit all the required documents.
Required documents for the application for expansion of a residential property manager's license:
- Certificate of professional liability insurance coverage additionally for the requested extended scope of the permit
If the permit was granted more than 3 months ago, the following documents and certificates must be submitted for the extension application:
- Extract from the Federal Central Register for submission to an authority (document type 0)
- Extract from the Central Trade Register for submission to an authority (document type 9)
- Certificate in tax matters
- Extract from the debtors' register of the central enforcement portal (§ 882b ZPO)
- Confirmation by the insolvency court regarding freedom from insolvency
- Current extract from the commercial register, insofar as an entry exists.
What fees apply?
Depends on the respective administration fee schedule of the state or on the fee statutes of the bodies responsible under state law.
legal basis
What else should I know?
Only regarding real estate agents and property managers:
While performing your duties, you are required to complete 20 hours of continuing professional development (CPD) every three calendar years. The same applies to any employees directly involved in the licensed activity. If you have completed vocational training as a real estate agent or advanced training as a certified real estate specialist, the CPD obligation begins three years after obtaining the respective qualification. You must retain documentation of your CPD for five years and present it to the relevant authority upon request.
According to the Broker and Developer Ordinance, construction supervisors and developers are required to conduct an annual audit.
As a real estate agent, property developer and construction supervisor, you have special accounting, recording, information and reporting obligations.
Regarding property managers only:
You must maintain professional liability insurance of at least €500,000 for each claim and €1,000,000 for all claims in a given year.
Applications / Forms