McMakler Under Investigation: Berliner Real Estate Company Faces Legal Scrutiny

The Berlin-based real estate agency McMakler is currently under investigation by the public prosecutor's office. This inquiry comes amid allegations that the company may have failed to fulfill its obligations regarding social insurance contributions over several years.

A spokesperson for the prosecutor's office confirmed the ongoing investigation but refrained from providing specific details, citing the need to protect the integrity of the inquiry.

Insider information from former employees suggests that McMakler has been reported for potential social insurance fraud. One former employee mentioned having been questioned by police and is expected to testify in court in January 2026. Despite inquiries, McMakler has not responded to requests for comment.

McMakler has faced increasing scrutiny due to issues related to social insurance contributions. Reports indicate that while the company pays its agents a fixed salary, a significant portion of their income depends on commission from property sales. However, during vacation periods, agents are not engaged in selling properties. To address the commission loss during such times, employers are required by federal law to provide proportional commission payments. It appears that McMakler may have only started complying with this requirement in November 2023.

The potential failure to pay these proportional commissions during vacation could imply that McMakler also neglected to remit the necessary social insurance contributions, which are mandated for both salaries and commissions.

McMakler's troubles are not limited to legal investigations; the company has been embroiled in disputes with former employees over unpaid commission claims. Several of these former employees have successfully pursued back payments in recent months.

These investigations come at a challenging time for McMakler, which has been grappling with a severe downturn in its business operations. Since the rise in construction interest rates in 2022, many individuals have been unable to afford real estate, leading to a steep decline in demand for real estate agents.

The impact of these circumstances has been dire for McMakler, resulting in layoffs of approximately half of its workforce and a dramatic reduction in the company's valuation from around EUR800 million to significantly lower levels. Recent reports indicate that the company has gone through multiple rounds of layoffs, further complicating its recovery efforts.

As the investigation unfolds, the future of McMakler hangs in the balance, with the real estate firm facing significant challenges both legally and in the marketplace.