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Liability of the real estate agency

Real estate brokerage is a strictly regulated business in Finland, which is supervised by our regional government and consumer authorities. All Sp-Koti estate agents comply with the Good brokerage practice guidelines of the Federation of Real Estate Agency(Opens in a new window, You will switch to another service)(KVKL). 

The real estate agency’s key statutory obligations include the obligation to provide and request information. All matters related to the sale of a property must be agreed with the client, i.e. the seller of the property or real estate, in a written contract of assignment, which shall include all information concerning the object of the sale known to the client. According to the law, a real estate agency is obliged to provide information to the client on matters that could affect the contract even before it is made, such as tax issues. The obligation to provide information continues throughout the contractual relationship. 

The real estate agency also has an obligation to provide information to the client’s counterparty, i.e. the buyer of the property, to whom all matters concerning the object of the transaction that affect or could affect the purchase decision must be reported. The real estate agency may also become subject to an obligation to request information in the middle of the sales process, especially if some unclear issues concerning the target require further clarification or verification. 

If the real estate agency does not fulfil its obligations carefully and this results in damage to the parties involved in the transaction, the real estate agency is liable for damages. In the event of damage, the real estate agency must have a valid liability insurance.  

The real estate agency’s liability for the object of the transaction is not the same as that of the seller, whose liability is typically the price reduction liability. 

Problems should always be resolved amicably. Unfortunately, it is not always possible to find a unanimous view on the matter of dispute or on the amount of damage, and therefore it may be necessary to resort to an outside view to resolve the situation. 

If the dispute between the real estate agency and the consumer cannot be resolved by negotiations between the parties, the consumer may refer the matter to the Consumer Disputes Board for resolution. Before taking the matter to the Consumer Disputes Board, the consumer must contact the Digital and Population Data Services Agency.  

A dispute can always be resolved in court as well.