Code of Ethics
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Entrance/licensing requirements
The entrance requirements for a real estate Practitioner are set forth in the German law, § 34c of the German trade regulation act (Gewerbeordnung). No education, courses or certifications are required to obtain a license as a Practitioner. To become a member of IVD, however, one must obtain special education and pursue continuing education on an ongoing basis. A Practitioner can market properties anywhere in the country. There are no regional/local restrictions. A nonresident cannot market properties. Real estate licenses are obtained from the Ministry of Trade and Industry. There are no annual license renewal requirements.
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Foreign ownership
There is no legislation that restricts foreign investment.
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Land Registration System
The land registry system is computerized in Germany and is accessible at the land registry offices.
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Other industry professionals
Other industry Professionals are not really directly involved with or being paid for the sale/rental of properties. Lawyers are not permitted to sell properties as professionals or receive remuneration for that selling by the German Lawyers Chamber, law and jurisdiction. Notaries are required to be involved to complete real estate transactions.
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Practitioner Services
IVD members are active in all aspects of residential and commercial property marketing, sales and leasing as well as in property management, financing and valuation.
For further information on the services provided by real estate Practitioners to sellers and buyers, click here
http://www.ivd.net/html/0/162/rubrik/527.html
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Property Marketing Systems
Practitioners use all facilities possible to bring buyers and sellers together including computerized, web-based systems on the local, national and international level. Practitioners have the access to operate in the free open market.
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Referral System
There is no national referral system and referrals are not common place. Most companies are locally based. These companies are involved in other business activities in addition to real estates. Property managers, real estate brokers and property valuers are not regulated in any manner.
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Relationship of Buyer/Seller to Practitioner
Relationship of Practitioner to Buyers and Sellers is defined legally by the German Civil Code “brokerage contract”.
Practitioners are agents or brokers. There are contracts with both, the buyer and the seller. Contracts are typically written. Contracts are mandatory. Relationships between real estate Practitioners and consumers are normally agency based. Services are primarily to assist in sale and rental.
For further information on the services provided by real estate Practitioners to sellers and buyers, click here:
http://www.ivd.net/html/0/162/rubrik/527.html Back to Top
Remuneration
Remuneration is paid normally either by the buyer or by the seller or half and half. It depends on the normal local fees in Germany. Payment occurs when the contract of house selling or house buying is ratified by a notary public. Funds are controlled normally by a notary public. Remuneration is normally up to 6 percent + VAT, maybe up to seven or eight percent, but any other percentages are restricted by jurisdiction and law. Remuneration for rentals is not allowed to be higher than two month’s rent + VAT.
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