Property loan broker

Property loan broker according to § 34i GewO

Due to European legal requirements, the sub-sector of property loan brokers was transferred from Section 34c GewO to the new provision Section 34i GewO. Since 21 March 2016, anyone wishing to broker a real estate consumer loan or corresponding financing assistance (mainly so-called finance lease agreements) or advise third parties on such agreements requires a licence as a real estate loan broker in accordance with Section 34i GewO .

The term real estate consumer loan agreement covers loan agreements for consideration between an entrepreneur as lender and a consumer as borrower, which are either secured by a mortgage or a charge on real property or which are intended for the acquisition or maintenance of ownership of real property. This also includes credit agreements taken out for the acquisition or maintenance of ownership rights to existing buildings or buildings to be constructed. Loans that are intended for the acquisition or maintenance of rights equivalent to real property are also included.

This does not include loans that merely serve to maintain the condition of buildings . The brokerage of home loan and savings contracts is also not covered because home loan and savings contracts as such are not real estate consumer loan contracts.

All brokering of other loans that are not real estate consumer loans and therefore do not fall within the scope of § 34i GewO are still subject to authorisation in accordance with § 34c GewO.

Since July 2015, brokering and advising on profit-participating loans and subordinated loans as investments (see the German Small Investor Protection Act) has been subject to a licence requirement in accordance with Section 34f of the German Trade Regulation Act (GewO)

Licence and registration according to § 34i GewO

Real estate loan brokers and fee-based real estate loan advisors require a licence under trade law and registration in the register of intermediaries.

1. Licence requirements for real estate loan brokers in accordance with Section 34i GewO

Personal reliability

This is proven by the presentation of a police clearance certificate for submission to an authority and an extract from the central trade register. As a rule, a person who has been convicted of a crime or theft, embezzlement, extortion, fraud, breach of trust, money laundering, forgery of documents, receiving stolen goods, usury or an insolvency offence in the five years prior to submitting the application does not have personal reliability.

Orderly financial circumstances

In order to prove orderly financial circumstances, proof must be provided that no current or completed insolvency proceedings are pending against the applicant and that there is no entry in the debtor register / enforcement portal.

Professional liability insurance

The existence of current pecuniary loss liability insurance with a minimum sum insured of € 460,000 for each individual insured event and € 750,000 for all insured events (minimum cover) in one year must be proven. This insurance must be in place both when the licence is granted and for the entire duration of the licence.

Knowledge and skills (expertise)

Expertise is demonstrated either by providing proof of certain training courses and practical experience or by passing an examination of expertise at a chamber of industry and commerce.

Registered office of the main branch and exercise of the activity as a property loan broker in Germany

The applicant must have its principal place of business or head office in Germany and also carry out its activities as a property loan broker there.

Proof of expertise

Proof of expertise must be provided by the licence holder . He may only employ persons who are involved in brokering or counselling (not necessarily directly!) or who are responsible in a managerial position if they have proven their expertise and reliability.

a) Examination of expertise

The examination of expertise is organised by the chambers of industry and commerce. The candidate can take the examination at any Chamber of Industry and Commerce, provided that it is offered. We, the Saarland Chamber of Industry and Commerce, offer the examination. The examination consists of a written and a practical part. In the written part, the examinee must demonstrate by means of practical tasks that he or she has acquired the basic technical and legal knowledge in the field of property loan brokerage and can apply this knowledge in practice. In the practical part of the examination, which is carried out as a simulation of a customer counselling interview, one candidate is tested at a time. Here, the candidate should demonstrate that they have the skills to develop and offer customer-orientated solutions.

b) Training qualifications equivalent to an examination of expertise

Proof of expertise can also be obtained through certain training qualifications.

Degree certificate (without further practical work experience)

1. a) as a property agent,
2. b) as a bank clerk,
3. c) Savings bank clerk
4. d) as an insurance and finance clerk specialising in financial advice if
5. aa) the final examination was taken on the basis of the version of the Ordinance on Vocational Training for Insurance and Finance Clerks valid until 31 July 2014 or
6. bb) the final examination was taken on the basis of the version of the Ordinance on Vocational Training for Insurance and Finance Clerks valid from 1 August 2014 and the applicant has chosen the elective qualification unit "Private Real Estate Financing and Insurance",
7. e) as a certified property specialist,
8. f) as a certified banking specialist,
9. g) as a certified financial counselling specialist or
10. h) as a certified insurance and finance specialist;

Degree certificate (with at least one year of additional professional experience)

Degree certificate as a financial specialist (FH) with a completed further education certificate course at a university, if you also have at least one year's professional experience in the field of property loan brokerage.

Degree certificate (with at least two additional years of professional experience)

Certificate as a certified financial services advisor (IHK), if you also have at least a

Completion of a degree in mathematics, economics or law at a university or university of cooperative education

An examination that successfully completes a degree in mathematics, economics or law at a university or university of cooperative education is recognised as proof if the applicant has the required expertise. As a rule, this requires additional proof of at least three years of professional experience in the field of property loan brokerage.

c) Transitional regulation

A qualification completed before 21.03.2016 in accordance with the standard of the joint catalogue of learning objectives of the German building societies of the Berufsbildungswerk der Bausparkassen e.V. [qualification: Bauspar- und Finanzfachmann/-fachfrau (BWB)], the Potsdam Chamber of Industry and Commerce, the North Westphalia Chamber of Industry and Commerce, the Sparkassenakademie Niedersachsen, the Sparkassenakademie Schloss Waldthausen, the Sparkassenakademie Baden-Württemberg, the Wirtschaftsakademie Schleswig Holstein/Niederlassung Lübeck or the Berufliche Fortbildungszentren der Bayerischen Wirtschaft (BFZ) gemeinnützige GmbH is equivalent to successfully completing the certificate of competence examination.