A permit shall be granted only if there are no facts justifying the assumption that the applicant or one of the persons entrusted with the management of the business or a branch does not possess the reliability required for the business operation.

As a rule, the applicant does not possess the required reliability

• anyone who has been convicted of a crime or of theft, embezzlement, extortion, fraud, embezzlement, money laundering, forgery of documents, receiving stolen goods, usury or an insolvency offense in the five years preceding the filing of the application,
• the applicant lives in disorderly financial circumstances,
• the applicant who wishes to carry on a business pursuant to paragraph 1 sentence 1 number 4 (residential property management) is unable to provide proof of professional liability insurance.

Tradesmen who wish to carry out property development or construction management activities on a commercial basis are also obliged under Section 16 of the German Real Estate Agents and Property Developers Ordinance (MaBV) to have compliance with the obligations arising from Sections 2-14 of the MaBV audited annually by a suitable auditor at their own expense and to submit the audit report to the competent authority by 31.12. of the following year at the latest. Audit reports must be submitted for the entire period of commercial activity! If no activities subject to inspection in the above sense have been carried out, a so-called ”negative declaration” must be submitted to the competent authority.

Furthermore, according to § 34c para. 2a GewO in conjunction with § 15b MaBV, a further training obligation applies to the activities of real estate brokerage and residential property management.

Tradesmen are obliged to undergo 20 hours of further training within a period of three calendar years; the same applies accordingly to persons employed directly in the activity requiring a license.

Important notice:

In the case of legal entities, the documents listed under Nos. 4 - 7 must be submitted both for the legal entity (e.g. GmbH, AG) and for the persons authorized to represent it by law, the articles of association or the partnership agreement (e.g. managing director, board of directors). In addition, an extract from the Commercial Register must be submitted in the case of legal entities and commercial partnerships. Legal entities must be the policyholder of the professional liability insurance under No. 8. The name of the legal entity in the permit procedure must be the same as the name of the policyholder of the professional liability insurance.