The Makler- und Bauträgerverordnung (MaBV – German Property Broker and Developer Ordinance) is an ordinance on the obligations of brokers, loan and investment brokers, developers and construction managers. It sets out the special regulations for exercising these professions.1
The German Property Broker and Developer Ordinance is therefore a consumer protection regulation that governs relations between the clients (consumers) and the above professions as the contractor. A central subject matter of regulation is the client’s assets. The German Property Broker and Developer Ordinance covers the following main content in order to best protect these assets:
Assurance obligations arise when the client has transferred assets to the contractor. The authorisation to dispose of the client’s funds triggers an assurance obligation as well. The contractor must therefore provide evidence of fidelity insurance or the provision of an absolute bank guarantee.2
In accordance with section 6 MaBV, the assets transferred must be kept separately from the contractor’s private assets.
The collection and retention duties require brokers, developers and construction managers to make records as part of their contract and to retain documents clearly so that the award and processing of the contract can be traced.
The legal basis for performing the stated professions is the power to issue statutory instruments in accordance with section 34 c of the Gewerbeordnung (GewO – German Industrial Code). Traders in this sense must have their costs regularly audited in accordance with section 16 MaBV.
Violations of the German Property Broker and Developer Ordinance can, in accordance with section 18 MaBV, constitute an offence and lead to fines accordingly.3