
Your real estate agent must be familiar with these laws
To ensure that everything runs smoothly from a legal perspective when selling or purchasing a property, real estate agents keep up to date with the latest legislation. After all, their job is to provide comprehensive advice to owners and prospective buyers and to support them competently throughout the purchase process.
What laws relating to the real estate industry are part of a real estate agent's knowledge base?
There are a whole host of regulations and laws that your real estate agent needs to be familiar with: the Building Energy Act (GEG), the Money Laundering Act (GWG), the Residential Property Brokerage Act (WoVermittG), the Brokerage and Construction Contract Ordinance (MaBV), tenancy law, the Operating Costs Ordinance (BetrKV), the EU General Data Protection Regulation (GDPR), the German Civil Code (BGB) including brokerage law, and the Real Estate Valuation Ordinance (ImmoWErtV). We will take a closer look at two of this long list.
Building Energy Act (GEG)
The Building Energy Act came into force on November 1 to help implement the government's climate targets for 2030. Previous laws such as the Renewable Energy Heat Act (EEWärmeG), the Energy Saving Act (EnEG) and the Energy Saving Ordinance (EnEV) were thus rendered invalid.
The energy standards of the GEG must be implemented when a property changes hands through purchase or inheritance. This does not apply if the previous owner has already taken care of this. After purchasing an old building, there is a two-year period in which the energy requirements must be implemented. This includes, for example, converting the heating system to renewable energies or renovating the facade.
Housing Agency Act (WoVermittG)
This law has been in existence for over 50 years: introduced in 1971 and amended in 2015, it regulates when and how a real estate agent receives a commission. For example, if someone brokers price-controlled housing and publicly subsidized apartments, they do not receive a brokerage fee. Economic ties must also be ruled out; a real estate agent must always act independently when brokering housing.
In order to avoid mistakes and penalties—which can arise with the GEG, for example—it is always advisable to seek the assistance of an expert. Consult a real estate agent who, as you now know, has extensive knowledge and can provide competent advice in all sales situations.
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Notes
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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