Who is liable when a real estate agent provides incorrect information to a buyer in connection with a property purchase? In a recent ruling, the Supreme Court (SC) has clarified the distinction between the seller's and the agent's liability in real estate sales.
Background: Incorrect information about electricity connection
The case concerned the purchase of an undeveloped property where the contact between the parties took place exclusively through the estate agent. The estate agent incorrectly told the buyer that the property was connected to the electricity grid. After the purchase, it turned out that there was no electricity, so the buyer claimed compensation for the connection costs from the seller.
The buyer claimed that the property deviated from what was promised (Chapter 4, Section 19 of the Land Code), while the seller claimed that he had neither provided the information nor was aware that the estate agent had done so.
