Real estate financing: losses in the millions after financing and insurance advice

A previously unpublished judgement of the OLG Munich (file no. 20 U 4956/06), – because of decision on the non-acceptance appeal at the BGH (file no. 1/1 ZR 288/07 of 18.12.2008) legally binding -, proves the misadvice by insurance brokers in the financing even of million-dollar projects.   DM 110 million construction financing with life […]

Scrap real estate: Banks liable for structural sales victims

BGH ruling confirms liability of banks and building societies A new ruling of the Federal Court of Justice (BGH ruling of 29.06.2010, Ref. XI ZR 104/08) obliges banks and building societies to provide unsolicited information to the borrower if a fraudulent deception of the buyer about the amount of the brokerage commission is apparent. If […]

Junk real estate: BGH facilitates the reversal of overpriced investments

Banks liable for structural sales victims of the building society trap   BGH ruling confirms liability of banks and building societies A new decision of the Federal Court of Justice (BGH ruling of 29.06.2010, Ref. XI ZR 104/08) obliges banks and building societies to provide unsolicited information to the borrower if a fraudulent deception of […]

Important points when taking out loans – beware of pitfalls

From an economic point of view, financing only makes sense if the money is invested profitably, i.e. the borrowing costs are lower than the return on the investment. But even if this is the plan, credit customers are repeatedly lured into financing traps. Dr. Johannes Fiala, lawyer, and expert Peter A. Schramm, Munich, have compiled […]

Administrative Court of Baden-Württemberg: Permission to broker real estate

*by Dr. Johannes Fiala, Attorney at Law (Munich), MBA Financial Services (Univ.), MM (Univ.), Certified Financial and Investment Advisor (A.F.A..), Lecturer for Civil and Insurance Law (BA Heidenheim, Univ. of Cooperative Education), (www.fiala.de) Gewerbeerlaubnis zur Bausparkredit- und Darlehensvermittlung The Verwaltungsgerichtshof (VGH) Baden-Württemberg has already decided by its judgement of 29.04.1997 that the ?concept of real […]

From prospectus liability to distribution liability – aspects of economic risks in distribution, in particular for closed-end investments, leveraged annuities, life insurances in connection with loans, off-market shares, pp. Loans, off-market and pre-market shares, pp.

A. Intermediary liability goes further than prospectus liability: Indispensable for a financial advisor is the certainty that – a complete initiator performance record is available, and – a complete prospectus audited without objections. Already here the financial advisor is often dependent on experts, because numerous auditor prospectus audit reports are for their part incomplete or […]

Insolvency administrator may collect and realise reinsurance of a U-fund of the GGF !

by Johannes Fiala, Lawyer (Munich), M.B.A. (Univ.Wales), M.M. (Univ.), Certified Financial and Investment Advisor (A.F.A.), EC Expert (C.I.F.E.), Banker (www.fiala.de ) The U-cash in the insolvency of the company: For decades, the entrepreneur was told what some insurers still say today in their sales documents: “Your company pension scheme is protected against insolvency by a […]

Federal Ministry of Finance: Insurance intermediaries secure zero return on life insurance policies

– Why the days of effortless money-making via life insurance are long gone –   Agents’ commissions fall The Life Insurance Reform Act (LVRG) not only lowers the guaranteed interest rate for life insurance policies from 1.75% to only 1.25% from 2015, but also the permitted inclusion of acquisition costs through zillmerisation from 4% to […]