The real estate agent’s liability
The real estate agent must provide the service with care, complying with good brokerage practices and taking into account the interests of both the seller and the buyer. The real estate agent’s performance must conform to information that have been given in marketing. Defect in the performance of the real estate agent may incur indemnity.
The real estate agent must provide the service with professional skill and care
The real estate agent must provide the service with professional skill and care and complying with good brokerage practices, with consideration of both parties’ interest. The real estate agent has an obligation to obtain information for the property or apartment to be sold, and supply the seller and the buyer with all information that could influence the purchase decision.
The real estate agent’s indemnity is typically based on neglect of the obligation to obtain information and the disclosure obligation.
Read more about the real estate agent’s assignments in the section of the real estate agent’s services and in instructions of good brokerage practices
The real estate agent’s liability for the seller
The Brokerage contract is usually made between the seller of the apartment or property and the real estate agent. The estate agent must give the seller all the information that he neither knew nor should have known may affect for concluding the assignment or the actual sale. For example, this information may concern the price estimate of the apartment or property to be sold, the schedule of the sale, or consequences of the capital gains tax.
The real estate agent’s performance is defective if it doesn’t conform to the requirements set by law or the assignment you’ve made.
The defect entitles you as a seller to demand:
- that the contract is cancelled, except the defect is of minor significance or you have already accepted an offer for the apartment or property
- that the commission is decreased if the defect has caused you inconvenience. In case of essential inconvenience, you can demand the compensation of the commission in its entirety.
- compensation for any damages you’ve suffered as a result of the defect
File a complaint with the real estate agent within a reasonable period from the time you noticed the defects in the performance of the assignment. Complaint should be filed in writing.
The Complaint Assistent helps
The application helps you draw up a written complaint that you can send to the trader.
The real estate agent’s liability for the buyer
The client’s contracting party is usually the buyer. The real estate agent must supply the buyer with all information that could influence the purchase decision.
You, as the buyer, are entitled to compensation for any loss suffered for a defect in a real estate agent’s service.
You should notice that the real estate agent doesn’t have a general responsibility for defects in the apartment or property, such as water damages detected after the sale has been concluded or other concealed defects.
The agent is not liable for e.g. incorrect information on the house manager’s certificate, unless the agent had reason to believe that the information in question was incorrect.
The real estate agent has a far-reaching liability for the legality and quality of his brokerage work. Claim for cancellation of contract or price reduction based on the defect in the apartment or property should be filed, instead of the real estate agent, against the seller.
The seller is liable to you for incorrect information supplied with regards to the apartment given by the real estate agent. Thereby, the real estate agent and the seller may have joint and several responsibility for a neglect in performance in selling the apartment or property. In this case the complaint should be filed against both the real estate agent and the seller.