Newsletter
BROKERS' FAILURE TO INFORM CONSUMERS OF THE RIGHT TO CHOOSE WRITTEN OFFERS VIOLATES THE FTL
The Fair Trade Commission recently resolved that a broker that uses its advantageous situation to collect brokerage fees without fully informing consumers of their right to opt for another kind of transaction (written offers) is in violation of the Fair Trade Law which prohibits deceptive acts adversely affecting the order of trade. Consequently, real estate brokers requesting brokerage fees should simultaneously inform consumers of their option to instead use standardized "written offers" as promulgated by the Ministry of the Interior. If consumers opt for an agreement involving payment of a brokerage fee, the broker should provide a written statement specifying the purpose of the fee and explicitly informing the consumers of their rights and obligations.