The Real Estate Agent Myth: What Can They Do, What Are They Allowed To Do? Part 3

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 7: Real estate agents favor certain buyer groups. Whether they can actually afford the property is determined later.

This myth does not correspond to reality.

One of the real estate agent's tasks is to check whether a prospective buyer can afford the property in question. To this end, they conduct a credit check beforehand. After all, no seller wants to experience a property sale being reversed because the financing falls through.

Real estate agents have more options than private individuals to check a prospective buyer's creditworthiness. Only if the prospective buyer can present a financing commitment from their bank will the property be reserved for them. Ultimately, the seller alone decides who the property goes to.

Myth 8: Real estate agents are not obligated to conduct in-depth investigations with property owners (for example, to verify whether a building permit exists). They are permitted to rely on information provided by the seller. While the seller is obligated to tell the truth, they cannot possibly know everything, especially if the property has a long history with many previous owners. Therefore, proving liability against real estate agents is often difficult.

This myth is only partially true.

Real estate agents are obligated to verify the plausibility of all information they receive. Due to their expertise, they are capable of doing so. If an agent knowingly withholds relevant information, they are liable; if the seller withholds information from the agent, the agent cannot be held liable.

However, real estate agents are obligated to conduct proper due diligence and may not withhold the results from prospective buyers. Case law on this matter has become significantly stricter in recent years. This strengthens the competence and professionalism of real estate consultants.

Myth 9: Real estate agents do not offer independent financial advice.

This myth is only partially true.

Some real estate agencies offer financing advice through a dedicated department with specialists specifically trained in this area. Others collaborate with reliable partners. Real estate brokerage should always be considered separate from financing advice and brokerage. However, prospective buyers can rely on the real estate agent to assist them with financing.

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.

Photo: © rudall30/Depositphotos.com