Real estate agents play a crucial role in property transactions, connecting buyers and sellers while providing essential guidance. They are required by law to maintain transparency, disclose key information about properties, and clarify their commission structure. Agents must inform buyers of significant property issues and seek expert advice when necessary. However, they are not liable for every detail and cannot be held responsible for information obtained through other sources.
Understanding the Role of Real Estate Agents in Property Transactions
When purchasing an apartment, house, or any property, engaging with a real estate agency is a common practice. These agencies play a pivotal role in connecting sellers with buyers, as well as providing essential advice throughout the entire transaction process. Real estate agents may also take on the responsibility of drafting the sales agreement. They typically earn a commission based on a percentage of the property’s sale price or may charge a fixed fee. Given their financial incentives, buyers may sometimes question the impartiality and integrity of the agent. Nevertheless, real estate professionals are legally bound by a duty of information and advice, although there are limits to this obligation.
Transparency and Information Duties of Real Estate Agents
A real estate agent’s duty of information is primarily rooted in strict transparency requirements. Agents must operate openly, clearly displaying their name, agency address, and any relevant rates in their office. These rates must remain consistent throughout the sales process and not change unexpectedly. Agents are tasked with crafting property advertisements that must include key details such as the Energy Performance Diagnosis (DPE), references to the official ‘Géorisques’ site for natural and technological risks, and a transparent disclosure of their commission, specifying which party will be responsible for the payment.
Buyers often have concerns regarding the property’s condition, leading them to seek information from the agent. In such scenarios, agents are obliged to provide truthful and comprehensive information that could impact the buyer’s decision-making process. While they cannot conceal critical facts, they may theoretically choose not to disclose minor details.
Agent Liability for Property Defects
The delineation of an agent’s responsibilities can be nuanced, but legal precedents offer some guidance. Agents must inform buyers of any significant issues they are aware of that could affect the sale. For instance, a 2016 ruling from the Court of Cassation held an agent accountable for failing to mention impending costly co-ownership work, even if it had not yet been formally approved.
While agents are not construction specialists, their profession requires them to investigate any uncertainties. For example, if they observe signs of a potential major defect, they are expected to consult a qualified expert. However, if no red flags are present or if an expert makes an error, the agent is not held liable. The obligation to inform extends to fine details; for instance, an agent claiming a roof is ‘new’ must clarify whether it was installed by a professional or the homeowner. Additionally, agents must verify the accuracy of the seller’s statements, such as the Carrez law surface area and ownership rights. Lastly, buyers cannot hold agents accountable for missing information if they have received that information through other channels.