In 2017, a brokerage law is set to come into force that will establish professional licensing regulations for real estate brokers and commercial property managers. The aim is to protect consumers and enhance the reputation and trustworthiness of the profession through improved quality and professionalism. We have compiled the most important facts...
What is it about?
A professional licensing regulation for real estate agents and commercial property managers. The law is intended to ensure the necessary reliability and regulated and orderly financial conditions. In addition, it includes a mandatory proficiency test and the obligation for managers to provide proof of professional liability insurance.
And where should this be stated in the law?
In the Trade Regulation Act under Section 34c: "Licensing requirement."
What is the point of all this?
The professional licensing regulations are a win for consumer protection. The law is also expected to enhance the reputation and increase the quality and professionalism of the profession. Consumer confidence will also increase.
Is everyone affected?
Real estate agents are no longer covered by professional liability insurance. The reason for this is the lack of increased liability risk. It is not yet clear whether rental managers will have to take out insurance. In addition, brokers and commercial property owners who have been in the profession for six years are exempt from the proficiency test. The same applies to self-managed owners' associations or non-commercial managers employed by a tenant-owner.
When will the law come into force?
The German Real Estate Agents Association (DDI) expects the new Real Estate Agent Act to be announced in the first quarter of this year. The professional licensing regulations could then come into force at the end of 2017.
Anything else?
Yes! Future employees must be checked by the business operator to ensure they have the specified qualifications. Diplomas, certificates, or training courses from private educational institutions and academies are sufficient for this purpose.
