DE | EN | RU (0)69 76 75 77 80Mon. - Fri. from 8am to 8pm, Sat. from 8am to 5pm

New rules for real estate credit intermediaries in Germany

While to date, real estate lending intermediaries only have to overcome a few regulatory hurdles in Germany, this is going to change soon based on the European Residential Immovable Property Credit Directive, which is now being transposed into German law. The Directive requires that intermediaries have to provide a certificate of competence, in order to obtain an administrative license for their services in association with real estate loans.

Disclosure requirements for credit intermediaries

In addition, extensive disclosure requirements for credit intermediaries are being introduced, under which they will have to provide information on their identity and explain the characteristics of the products proposed to consumers prior to giving advice on real estate loans. Consumers will also have to be informed of any fees they should pay to credit intermediaries in relation to their services. The compensation structure of credit intermediaries will also become more complicated. Under the new rules, they will not be allowed to give advice according to compensation models that conflict with consumers’ best interests. Many bonus systems will therefore have to be reviewed.

Violations punishable in 2016

Companies intending to act as credit intermediaries for residential immovable property in Germany or in any of the EU Member States should seek early regulatory advice. Planned transitional periods are short and violations of the new rules will be punishable by fines already in 2016.

Continue reading:
Banking in Germany with European Passport
Banks cannot charge fee for every transaction on business accounts

Dr. Annette Wagemann

Dr. Annette Wagemann comprehensively advises companies and their managers on questions regarding business law and banking regulations. She is specialized in the legal structuring of business models, corporate governance and compliance, and especially in business models that require a BaFin license.

>> show profile

Leave a Comment

Your email address will not be published. Required fields are marked with *

WINHELLER Blog via Newsletter

Subscribe to our free newsletter and receive regular updates on German business law by e-mail. (Mandatory fields are marked with *)

German Business Law News (4 times a year)
I would like to subscribe to the selected newsletter and for that purpose give my consent to WINHELLER to process my above mentioned data. I have read the "Information for Data Processing in the Newsletter Subscription". I understand that I can revoke my consent at any time with effect for the future by clicking the unsubscribe button within the newsletter. *