Property developers and construction supervisors; application for a permit by EU citizens

If you want to work commercially as a property developer or construction supervisor, you need a permit.

Description

According to § 34c Para. 1 No. 3 of the Trade, Commerce and Industry Regulation Act, a license is required for anyone who

  • prepares or carries out construction projects as a building owner in their own name for their own account or for the account of third parties and intends to use assets of purchasers, tenants, leaseholders or other beneficiaries or of applicants for acquisition or usage rights for this purpose, or
  • intends to economically prepare or carry out construction projects as a construction supervisor in the name of a third party for the account of a third party.

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

Traders are generally subject to special obligations in accordance with the Broker and Property Developer Ordinance (MaBV). These include in particular the obligations

  • to provide sufficient collateral or to take out suitable insurance for this purpose if the trader receives or uses assets belonging to the client (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 receive and use the client's assets has also been restricted (Sections 3, 4 MaBV). In addition, the trader is obliged to have compliance with the provisions of the Real Estate Agent and Property Developer Ordinance audited annually at his own expense and to submit the audit report to the competent authority (Section 16 MaBV).

The authorities have rights of information and inspection vis-à-vis traders pursuant to Section 34c of the Trade, Commerce and Industry Regulation Act (Gewerbeordnung) in accordance with Section 29 of the Trade, Commerce and Industry Regulation Act. 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 Section 34c of the Trade, Commerce and Industry Regulation Act, you must also notify the responsible municipality of your business in accordance with Section 14 of the Trade, Commerce and Industry Regulation Act.

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.

Deadlines

Duration of the procedure about 3 - 5 weeks

Processing time

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

Required documents

  • valid identity card or passport

  • Proof of good character from the country of origin in the form of a certified copy and a certified German translation;

    where appropriate, replacement by affirmation in lieu of oath or similar act

  • Proof of orderly financial circumstances from the country of origin in the form of a certified copy and a certified German translation;

    where appropriate, replacement by affirmation in lieu of oath or similar act

  • Documents for property developers and construction supervisors in the case of registered companies, civil law companies and limited liability companies

    in the case of registered companies, an excerpt from the commercial register or comparable registration documents from abroad (with German translation) in the case of civil law companies, articles of association in the case of a limited liability company being formed, a copy of the notarial deed of formation and a power of attorney from the founders, according to which the commencement of business is to be commenced before 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 authorities.

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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