Real estate agents; application for a license by EU citizens

If you want to broker the conclusion of contracts for land, land rights, commercial premises, residential premises (real estate agents) or prove the opportunity to conclude such contracts, you need a license.

Description

According to § 34c Para. 1 Sentence 1 No. 1 of the Trade, Commerce and Industry Regulation Act (GewO), a license is required to broker the conclusion and provide evidence of the opportunity to conclude contracts for land, land rights, commercial premises or residential premises.

In the case of partnerships, every managing partner is a trader; in the case of legal entities, the license is granted to the legal entity (e.g. GmbH or AG).

Traders are subject to special obligations in accordance with the Real Estate Agent and Property Developer Ordinance. The obligations to be observed under the Real Estate Agent and Property Developer Ordinance (MaBV) include in particular

  • to provide sufficient collateral or to take out suitable insurance for this purpose if the trader receives or uses the client's assets (Section 2 MaBV),
  • to manage the client's assets received separately (§ 6 MaBV),
  • to submit an invoice to the client after completion of the contract (§ 8 MaBV),
  • to notify the competent authority of any change in the persons entrusted with the management of the business or a branch office (Section 9 MaBV),
  • to provide the client with the information in text form necessary for the assessment of the order and the contract to be brokered or verified (§ 11 MaBV),
  • to keep books including the recording of data on individual business transactions and on the clients (§ 10 MaBV),
  • Obligation to provide further training (§ 15b MaBV).

To protect the client, the trader's authority to use the client's assets has also been restricted (Section 4 MaBV). In addition, the trader may be obliged to have compliance with the provisions of the Real Estate Agent and Property Developer Ordinance audited at his own expense on special occasions and to submit the audit report to the competent authority if this is necessary for effective monitoring (Section 16 (2) MaBV).

The authorities have rights of information and inspection vis-à-vis traders pursuant to Section 34c GewO in accordance with Section 29 GewO. At the request of the authorities, the parties concerned must provide the information required to monitor business operations. Furthermore, the authorities are authorized to enter the business premises in order to carry out inspections and visits.

In addition to obtaining a permit in accordance with § 34c GewO, you must notify the responsible municipality of the business in accordance with § 14 GewO when you commence your activities.

Prerequisites

The requirements for a license are the trader's reliability and orderly financial circumstances.

The reliability and financial circumstances of the trader are verified on the basis of documents issued in the country of origin which prove that the requirements for reliability and orderly financial circumstances are met. It may be required that a certified copy of the documents and a certified German translation be submitted. If such documents are not issued in the country of origin, they may be replaced by an affidavit in lieu of an oath by the trader or comparable acts under the law of the country of origin.

Processing time

Processing takes a few weeks once all the documents have been submitted.

Required documents

  • valid identity card or passport

  • Proof of good repute from the country of origin

    In the case of applications for a proxy permit, a certified copy and a certified German translation; if necessary, substitution by an affirmation in lieu of an oath or similar act.

  • Evidence of a well-ordered financial situation from the country of origin

    in certified copy and certified German translation; if necessary, replacement by affirmation in lieu of an oath or similar acts

  • for registered companies, civil law companies and limited liability companies:

    • for registered companies: Commercial register excerpt or comparable registration documents from abroad (with German translation),
    • in the case of companies under civil law: articles of association,
    • in the case of a GmbH in the process of formation: a copy of the notarial formation agreement and a power of attorney from the founders, according to which the commencement of the trade is to be commenced prior to the entry in the commercial register.

  • in the case of a power of attorney: a written power of attorney and identification of the grantor of the power of attorney and the authorized representative

Fees

  • Fees will be charged. These are set out in the fee schedule of the locally responsible office.

Remedy

Administrative court proceedings; information

Administrative court action

Status:07.11.2023

Responsible for editing:Bayerisches Staatsministerium für Wirtschaft, Landesentwicklung und Energie

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  • Online transactions, Bavaria-wide
  • Online transactions, locally limited
  • Form, Bavaria-wide
  • Form, locally limited
  • Prefillable Form, Bavaria-wide
  • Legal bases, Bavaria-wide
  • Legal bases, locally limited
  • Fees, Bavaria-wide
  • Fees, locally limited
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