If a broker has doubts about the prospective buyer's ability to afford a property, he must advise the owner against selling. The broker is not liable for financial damages incurred by the prospective buyer. This is the result of a decision of the Regional Court of Frankenthal (Palatinate), which is not yet final (judgment of 07.05.2021, Az. 1 0 40 / 20).
In the present case, a real estate agent is to sell a property for an owner. A prospective buyer contacted the agent, came to a property inspection and held sales talks with the owner. However, a sales contract was not concluded. The broker advised the owner not to sell due to a lack of financing confirmation, among other reasons. Ultimately, the property was sold to another prospective buyer.
The prospective buyer then filed a lawsuit against the broker because she assumed that she would be awarded the property after shaking hands with the owner and that the broker had also told her that she could start preparing to move. She did. She had incurred costs of almost 30,000 euros for this. The court pointed out that the prospective buyer had started moving too early and sales can fail for many reasons. Therefore, the broker is not liable. The decision can still be appealed.
Source: LG Frankenthal
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