The new regulations on the right of withdrawal and real estate credit

Again and again, there are certain EU directives that have to be gradually implemented in Germany into national law. One such financial sector directive entered into force on 21 March 2016. Contents are some changes, which concerns the advice with real estate credits, the revocation of wrong revocation instructions and the proof of competence of credit intermediaries.

Changes in the area of ​​the right of withdrawal


Maybe you’ve heard of the so-called cancellation joker in the past? Thus, the until then indefinite right of revocation was designated, which existed above all for real estate loan agreements, which were closed between 2002 and 2010, since these often contained a faulty cancellation policy. Until now, there was no time limit until when consumers had to revoke these credit agreements.

However, the EU Directive now implies that the revocation must be made by 21 June of this year at the latest, as the revocation right expires on that date. Also new is that all real estate loans that will be completed in the future, are also only provided with a right of withdrawal of a maximum of one year and 14 days. If the newly concluded contracts again contain a faulty or incorrect cancellation policy, there will be no time-unlimited right of revocation.

Advice on real estate loans must be more intensive


While removing the Revocation Broker is rather a negative change from a consumer perspective, the EU Directive also includes positive changes. For example, there is a change in the requirement that advising on real estate loan deals should be more informed, more detailed and more individual than hitherto. In addition, the EU Directive stipulates that in future it will not be possible to provide remote advice, for example by telephone or e-mail.

Instead, real estate credit counseling must always be held in person in a local conversation.

The consultants should take more time for the customer


And above all better than before on his individual questions and needs, which are related to the upcoming real estate financing. This also includes that credit intermediaries working in the market must prove their professional qualifications in the future.

This should be done in the form of a certificate of competence, which must be filed before the IHK. Although there is a certain protection for such persons who have been working for some time as a credit intermediary, but in principle applies to newcomers that the required proof of expertise must be definitely provided.

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