Judgment of the Court (Fifth Chamber) of 21 July 2011.#European Commission v Portuguese Republic.#Failure of a Member State to fulfil obligations - Freedom of establishment and freedom to provide services - Carrying out real estate activities.#Case C-518/09.

Subject of the case

Re:

Failure of a Member State to fulfil obligations – Infringement of Articles 49 TFEU and 56 TFEU – Carrying on business in property transactions.

Operative part

Operative part

The Court:

1. Declares that,

– by permitting the business of real property brokerage to be carried out only within estate agencies;

– by requiring real property brokerages and estate agents established in other Member States to cover their professional liability by taking out insurance compatible with Portuguese legislation;

– by requiring real property brokerages established in other Member States to hold positive equity in accordance with that legislation, and

– by making real property brokerages and estate agents established in other Member States subject to the full disciplinary control of the Instituto de Construção e do Imobiliário IP,

the Portuguese Republic has failed to fulfil its obligations under Article 56 TFEU, and

– by requiring real property brokerages to carry out exclusively the business of real property brokerage, with the exception of the management of real property on behalf of third parties, and

– by requiring estate agents to carry out exclusively the business of estate agency,

the Portuguese Republic has failed to fulfil its obligations under Articles 49 TFEU and 56 TFEU;

2. Orders the Portuguese Republic to pay the costs.