Estate agent
An estate agent, in everyday speech often just called a broker, is a licensed intermediary who assists with the purchase and sale of real property. The agent acts between seller and buyer, handles the practical and legal side of the transaction, and has a duty to look after the interests of both parties. In Norway, estate agency is a regulated activity, and only firms with a licence from Finanstilsynet (the Norwegian financial supervisory authority) may carry it out.
The profession is regulated by eiendomsmeglingsloven (the Norwegian Estate Agency Act), which sets requirements for education, authorisation and proper conduct. The responsible agent must be an authorised estate agent or a lawyer with a licence. Central to this is the requirement of good brokerage practice (god meglerskikk) and the duty to give the buyer a correct and complete picture of the property. The agent prepares the sales prospectus (the prospectus), obtains information from the matrikkel, Grunnboken and the municipality, and attaches a valuation or condition report. Errors or omissions in this information can trigger the agent's liability for damages, alongside the seller's liability under avhendingslova (the Norwegian Sale of Property Act).
The agent's work follows a set sequence: valuation and pricing, marketing, viewing, the bidding round, and finally settlement. During the bidding round, the agent has a duty to treat all bidders equally and to keep an auditable bid log. At settlement, the agent handles the purchase price through a client account, ensures that legal title is transferred to the buyer through registration, and that the seller's mortgage is deleted before the seller is paid. This intermediary role is the reason settlement is considered safe even when the parties do not know each other.
The agent is normally paid a commission, an agreed percentage of the sale price, or possibly a fixed fee, in addition to reimbursement of costs for marketing, obtaining information and document duty. The fee is freely negotiable, and it pays to compare offers. The agent should not be confused with a surveyor: the surveyor assesses the technical condition and value of the property in a valuation, while the agent runs the sales process itself. An agent's asking price is also not the same as an independent valuation, even though the two are often close.
Using an agent is not required by law. The seller can choose a private sale, but then gives up the agent's liability insurance, settlement handling and marketing apparatus. A middle option is for a settlement agent or property lawyer to handle only the contract and settlement, while the seller markets the home. In the purchase and sale of commercial property, a commercial property broker often handles the transaction, and the roles are usually split between a transaction adviser who finds and negotiates the deal, and a lawyer who handles due diligence and the contract. Whatever the form, it is the agent's independence and duty of disclosure that separate a professional transaction from a purely private sale.
In Placepoint you will find much of the same basis an agent builds on: property data from the matrikkel, ownership history and encumbrances from Grunnboken, and transaction figures for the area. That makes it easier to prepare a sale, assess an asking price or understand a property before the bidding round.
From Placepoint's dictionary: Estate agent
More information: Eiendomsmeglingsloven, Finanstilsynet: eiendomsmegling, Norges Eiendomsmeglerforbund, Store norske leksikon: eiendomsmegler
English: Real estate agent (eiendomsmegler; a licensed intermediary in property sales, a regulated profession in Norway).
Frequently asked questions
What does an estate agent do?
An estate agent assists with the purchase and sale of real property: valuation, marketing, viewing, the bidding round and settlement. The agent must look after the interests of both seller and buyer under eiendomsmeglingsloven.
Does an estate agent need authorisation?
Yes. Estate agency is regulated by law, and only firms with a licence from Finanstilsynet may carry out the activity. The responsible agent must be an authorised estate agent or a lawyer with a licence.
What is the difference between an estate agent and a surveyor?
The agent runs the sales process itself. A surveyor assesses the technical condition and value of the property in a valuation or condition report, which the agent attaches to the sales prospectus.
What does an estate agent cost?
The agent usually charges a commission (a percentage of the sale price) or a fixed fee, plus costs for marketing, information and document duty. The fee is freely negotiable, so it pays to compare offers.
Who is responsible if there are errors in the sales prospectus?
Both the seller and the agent can be held responsible. The seller is liable for defects under avhendingslova, while the agent can be liable for damages for incorrect or missing information the agent should have obtained or passed on.