Myth or truth - what a broker can and may do (Part 3)

There are many reservations about estate agents and they often persist. They are usually about what an estate agent is (not) allowed to do and what they are capable of. But what is actually true about these myths? We clear them up.

Myth 1: Brokers and the duty to investigate

Estate agents are not obliged to make in-depth inquiries with the owner (information on planning permission etc.). They may rely on the information provided by the seller. Although the seller is obliged to tell the truth, he cannot know everything about a house with a long history and many previous owners. It is therefore often difficult to prove liability in relation to information provided by estate agents.

This myth is partly true.

There is an obligation to make all information known to the estate agent comprehensible to interested parties. Real estate agents are able to do this due to their expertise. The estate agent is also obliged to carry out appropriate investigations, the results of which must also be passed on. Estate agents can only be held liable if something was knowingly concealed. The situation is different if the seller demonstrably withholds information from the estate agent. In this case, the broker is not liable. Overall, however, case law has become stricter towards estate agents in recent years.

Myth 2: Estate agents prefer buyers

Estate agents are under pressure due to the high level of competition. If there are many applicants for a property, the estate agent prefers certain groups of buyers. These include visually attractive people who are eloquent. Whether they can afford the property is determined afterwards.

This myth is not true.

If there are many applicants for a property, it is the task and core competence of the estate agent to check in advance which interested parties can afford the property and will be invited to view it. To this end, a credit check is carried out in advance. After all, the most important thing for the seller in the end is financial security. It should be clear beforehand whether the sale is in danger of failing due to insecure or lacking financing. Estate agents also have more options for checking than private individuals. A property is only reserved if the buyer can provide a financing commitment. This is also checked by the estate agent. The owner ultimately decides to whom the property is sold.

Myth 3: Financing advice from a broker

Not all brokers offer independent financial advice.

This myth is true.

Not all brokers offer advice on real estate financing. Brokers who offer such services either work with their own specialist department, including specially trained staff, or with financial institutions. In these cases, they can assist interested parties with the transaction. Real estate brokerage is separate from the service mentioned above.

Do you have questions about buying or selling a property? Or would you like some advice? Then please contact us. We will be happy to assist you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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