German court upholds damages after discrimination by realtor

The Federal Court of Justice (BGH) on Thursday ruled that a real estate agent must pay damages after discriminating against a prospective tenant because of her ethnic background.

The court, based in Karlsruhe, upheld an earlier ruling that the agent violated the General Equal Treatment Act (AGG).

What do we know about the discrimination case?

In November 2022, Humaira Waseem applied online for a viewing appointment for an apartment in the town of Gross-Gerau, just south of Frankfurt. She used her Pakistani first and last name, but all of her requests were rejected.

Further viewing applications made either by the claimant herself or at her instigation under foreign-sounding names were also unsuccessful.

However, when the 30-year-old tried again using the names “Schneider,” “Schmidt,” and “Spiess” — with otherwise identical information about her income and occupation — she was offered viewing appointments.

Waseem demanded compensation from the real estate agent. Last year, the Darmstadt Regional Court awarded her €3,000 ($3,590) plus reimbursement of her legal fees.

What did the court say?

Because the agent appealed the ruling, the case went to the BGH, which agreed with the regional court.

Presiding Judge Thomas Koch stated that this was a “clear case of discrimination.” He added that real estate agents, too, must adhere to the legal prohibition against discrimination.

The court said it was lawful for the claimant to create comparable test applications, including using other names or third parties, and saw no sign of abusive litigation.

Waseem expressed her relief after the decision and said, “A huge weight has been lifted from my shoulders.”

What was the reaction?

The Federal Government Commissioner for Anti-Discrimination, Ferda Ataman, described the ruling as “an important signal to the country: discrimination in the housing market is prohibited, and people can defend themselves against it.” 

She also called for an amendment to the AGG to ban discriminatory housing advertisements. Such a rule already exists for job advertisements.

The German Property Federation (IVD), which includes real estate agents among its members, called the ruling “consistent.”

“Even if the real estate agent does not conclude the rental contract but merely brokers it, they must comply with the AGG when making selections. That is mandatory,” said IVD Managing Director Christian Osthus. The association also emphasized that agents must not implement discriminatory instructions from their clients.

Edited by: Sean Sinico