New obligation to verify identity: This is how the real estate market is changing!

New obligation to verify identity: This is how the real estate market is changing!

Anyone who wants to enter the real estate market in Hesse should currently deal with a brand new set of rules that significantly changes the practices in real estate transactions. Especially that one Money Laundering Act Reporting Obligation Ordinance Real Estate (GwGMeldV-Immobilien), which came into force on February 17, 2025, has introduced new obligations for real estate agents and other professional groups involved.

With the aim of combating money laundering in the real estate sector, lawyers, notaries and other professionals must adhere to more stringent reporting requirements. These changes result from such a high risk of money laundering that incriminated funds are often circulated through real estate. Particular attention is paid to sales where the consideration deviates significantly from the recognized market value or where payments are made in cash and cryptocurrencies.

Significant innovations and their effects

The newly introduced ban on using cash, cryptocurrencies or even precious metals when buying real estate is particularly striking. If the due date of the purchase price deviates by more than a year from the registration of the purchase contract without understandable reasons, notaries must notify this. This serves to prevent attempts to circumvent the ban on cash payments. In certain circumstances, buyers and sellers must now expect to be under “general suspicion”, which could have a massive impact on real estate transactions.

Like those too Information from Wohnglück confirm, real estate agents are required to check the identity of all contracting parties. Necessary documents include an identity card for natural persons or an extract from the commercial register for legal entities. These documents must be kept for at least five years. Misconduct can result in fines of up to 150,000 euros being imposed, while serious violations can cost up to a million euros.

Another point that should not be ignored is liability for the accuracy of the information provided. Customers have a responsibility to verify property information, which is why it is essential to rely on the expertise of real estate specialists who also offer free valuations.

Energy consumption in focus

Energy consumption remains a decisive criterion when evaluating real estate. The energy consumption certificate for a specific object shows a final energy consumption of 163.00 kWh/(m²*a) and is valid until August 27, 2025. The property in question is a property from 1980. The energy efficiency class F makes it clear that there is a need for action to keep energy costs under control and to act in a more environmentally friendly manner.

In summary, the new regulations in the real estate sector significantly increase responsibilities and aim to ensure the integrity of the market. Buyers and sellers are well advised to find out about the current regulations and take the necessary steps in good time.