Brokerage activities - licence

Teaser

Would you like to broker property or loan agreements on a commercial basis? You need an official licence for this. This also applies if you want to manage residential property or prepare and carry out construction projects on a commercial basis.

  • Service description

    You require a licence if you wish to offer the following on a commercial basis:

    • Real estate brokerage (estate agents),
    • Mediation of loan agreements (except property loans for consumers),
    • Management of residential property (residential property manager and residential property manager) or
    • Preparation or realisation of construction projects in own or third-party name (property developer, construction supervisor)

    Depending on which licence you apply for, you are authorised to carry out the following activities, for example:

    • Brokerage of real estate and rights equivalent to real estate, as well as brokerage of the sale, encumbrance, letting or leasing of real estate
    • Brokerage of residential property and contracts for mortgages and land charges,
    • Brokerage of commercial and residential premises, i.e. all types of room rentals including leases and subleases, i.e. also the brokerage of flats and rooms.
    • Brokerage of loans (except property financing for consumers)
    • Planning or implementation of construction projects using third-party assets, for example with assets of tenants, leaseholders, other authorised users or persons applying for acquisition or usage rights. It makes no difference here whether you act in your own name (property developer) or whether you act on behalf of third parties (building supervisor). The following activities are possible, for example: Submitting building applications, commissioning architects and tradesmen, procuring and calling up financing, taking out insurance policies, calculating future rents.
    • Management of rented flats or the joint residential property of several people. You are an administrator, for example, if you
      • Implement resolutions of the condominium owners and ensure that the house rules are enforced;
      • take the measures necessary for the proper maintenance and repair of the common property;
      • arrange for and receive all payments and services associated with the ongoing management of the common property;
      • manage the funds collected.

    You require a different, separate licence under commercial law to broker real estate consumer loan agreements.

  • Prerequisites

    • You have the reliability required for commercial operations. As a rule, you do not have this if you have been convicted of a crime or a (legally specified) property offence within the last 5 years.
    • You live in orderly financial circumstances: No insolvency proceedings have been opened against your assets or rejected due to lack of assets.
    • If you want to work as a residential property manager, you need professional liability insurance of at least EUR 500,000 for each insured event and EUR 1,000,000 for all insured events in a year.

  • Which documents are required?

    • Copy of identity card or passport with registration certificate or presentation on site.
    • Proof of orderly financial circumstances
      • usually for residents of Germany:
        • Extract from the debtor register
        • Certificate from the insolvency court
        • Certificate in tax matters (from the tax office)
      • if you live abroad: documents from your home country that prove your orderly financial circumstances
    • Proof of the legal form of the company:
      • for companies domiciled in Germany: for companies entered in a register: Extract from the commercial register or the partnership register or the register of co-operatives
      • if the company is based abroad: documents from the country of domicile that prove the legal form
    • Proof of personal reliability:
      • if you are resident in Germany:
        • Certificate of good conduct for submission to an authority
        • Central trade register extract for submission to an authority
      • if you live abroad: documents from your country of residence that prove your personal reliability

    The competent authority may request further documents to verify personal reliability.
    In the case of legal entities such as a GmbH, you must submit the personal documents for all natural persons authorised to manage the company (e.g. identity papers) or apply for them (e.g. extract from the central trade register for submission to an authority).
    For legal entities, you also need an extract from the central trade register for submission to an authority.
    Partnerships such as a GbR, KG, OHG, PartG or GmbH & Co KG are not eligible for a licence as such.
    Therefore, each managing partner requires a licence. Submit a completed application form and all personal documents for each of these persons.
    If you wish to work as a residential property manager, you must submit proof of the professional liability insurance required by law.

  • What deadlines do I have to observe?

    You must have the licence before the start of operations. You should therefore submit the application in good time, i.e. a few weeks before you intend to start operating.

    For the activity as

    • Real estate agent,
    • Property developer
    • Building supervisor
    • Residential property manager

    applies: The licence is deemed to have been granted if the authority has not made a decision on your application within a period of 3 months after receipt of the complete documents.
    You must notify the authority responsible for business licences of the start of your activity at the same time.

  • Legal basis

  • What else should I know?

    Real estate agents and residential property managers, as well as their staff, are obliged to undergo regular further training in line with their activities.

  • Short text

    • Trade of estate agents, investment advisors, property developers, residential property managers and construction supervisors Licence
    • The following commercial activities are subject to authorisation:
      • Mediation of loan agreements
        • A different, separate commercial licence is required for the brokerage of real estate consumer loan agreements.
      • Activity as a real estate agent
      • Management of residential property (residential property manager)
      • Preparation or realisation of construction projects in own or third-party name (property developer, construction supervisor)
    • Authorisation can be restricted in terms of content or linked to conditions.
    • Responsible: depends on the respective state law

  • Typing

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Who should I contact?

In the independent cities to the magistrates and in the districts to the district committees.

You can also handle the procedure electronically via the Point of Single Contact:

Responsible departments