Glossary · Real estate finance
MaBV: Germany's Estate Agent and Property Developer Regulation
MaBV protects buyers when buying from property developers – and at the same time sets the pace in which sales proceeds flow back into project financing.
Last updated: 18 July 2026 · Reviewed by Jürgen Kronawitter
What does the MaBV regulate at its core?
property developers sell properties that are not yet finished – MaBV (issued on the basis of § 34c GewO) protects the intermediate services of the purchasers. Purchase price installments may only flow if the purchase contract is effective, the insolvency reserve is registered, the load exemption is secured and the building permit is available (§ 3 Abs. 1). Only then does the installment plan take effect according to construction progress (§ 3 Abs. 2) – from 30 % after the start of the earthworks (25 % without land part) to shell construction, Germany, Austria and Switzerland, rough installation until completion; a total of seven installments from thirteen defined stages.
§ 7 MaBV: the guarantee solution
Alternatively, property developers can accept payments before the security requirements are met if it provides a guarantee from a credit institution (§ 7 MaBV). This accelerates the inflow of funds, but costs aval commission and credit line. Whether installment plan or guarantee solution is more economical depends on sales speed, interest rate level and project phase.
MaBV and property development finance: the interplay
The financing bank and the MaBV installments interlock: Acquisition rates reduce the use of the Property development financeThe bank’s release undertaking makes the flow of installments possible in the first place. A reliable project calculation therefore models construction costs, sales quota and MaBV inflow over time – including the Liquidity peaks, which typically have Mezzanine capital or Interim finance be covered. It is precisely this structure that we are preparing for property developers to be able to provide capital.
Frequently asked questions
MaBV – briefly answered
What rates does § 3 MaBV allow?
A maximum of seven rates from thirteen defined construction progress levels – e.g. B. 30 % after the start of earthworks (including land), 28 % after shell construction completion, further stages until complete completion. The prerequisites are, inter alia, an effective contract, pre-allocation and secured burden release.
What does the guarantee according to § 7 MaBV bring?
It allows the property developers to receive purchaser funds regardless of the construction progress, because a bank guarantee secures the repayment claims. Advantage: former liquidity; disadvantage: cash costs and debited credit lines.
Why is MaBV so important for financing?
Because it determines when sales proceeds actually flow. The property development finance is structured exactly around these MaBV inflows – incorrectly modeled, expensive liquidity gaps arise in the middle of the construction phase.
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About the author
Jürgen Kronawitter
Jürgen Kronawitter specialises in structured real estate finance. He helps property investors, developers and portfolio owners implement complex financing solutions. His work focuses on structuring and arranging senior loans, whole loans, mezzanine capital and bridge loans, as well as tailored financing for acquisitions, investment properties, developments and refinancing.