The Real Estate Agent Myth: What Can They Do, What Are They Allowed To Do? Part 1

There are several prejudices against real estate agents. But are they actually true? Generally, it's about what an agent is allowed to do and what they can do. Read on to find out what's really behind these real estate myths.

Myth 1: Purchase agreements often contain unauthorized claims by real estate agents for the enforcement of commissions, which then have to be removed at considerable expense.

That is not right.

A clause confirming the agreed commission will only be included in the contract if both buyer and seller unanimously agree to this. Otherwise, only the standard contractual provisions will be included. The real estate agent's independent claim arising from the purchase agreement is only considered if a right of first refusal is imminent.

Myth 2: Real estate agents cannot and are not allowed to provide legal advice regarding sales and purchase contracts. Only lawyers are permitted to do so.

That is partly true.

Only individuals authorized to provide out-of-court legal services are permitted to examine simple legal matters. Real estate agents typically do not possess such authorization, unless they are qualified lawyers. This is the ruling of the Federal Court of Justice (BGH) of July 12, 2018 ( BGH I ZR 152/17 ). However, "certain advisory obligations regarding standard legal and tax issues in a specific area may arise for the agent in individual cases if they boast – for example, in their advertising – of many years of activity and experience in that field. Furthermore, if the client is clearly in need of legal guidance regarding contractually relevant circumstances, the agent must advise them to seek expert advice."

Myth 3: Real estate agents cannot provide a technical assessment of the property because they are not experts in pollutants in the building or in damage to the property.

That's correct.

Property owners who wish to have their property inspected for damage and pollutants must commission a certified expert for this purpose. If the property is also to be sold, it is advisable to involve a real estate agent. This is because certified experts are generally unable to assess how damage and pollutants will affect a property's value. Reputable local real estate agents typically have an excellent network and can recommend an experienced expert.

Do you have questions about buying or selling a property? Or would you like some advice? Contact us. We'd be happy to help.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

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

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