Broker who conceals rental ban liable?

Broker who conceals rental ban liable?

Is a broker liable if he conceals that there is a municipal rental ban (buyout protection)? And is that true even if that broker is not acting for the buyer, but for the seller? That question was at issue in a case decided last summer by the Supervisory Board of the NVM was addressed. Attorney Robert van Ewijk discusses the Board of Review's verdict and explains how it reached it.

Can sales broker be liable to buyer

In the case handled by the NVM disciplinary judge, it was the sales broker of an apartment who had to answer. This broker had sold a property in Zeist on behalf of the seller. Since June 1, 2022, the municipality of Zeist applies a rental ban for newly purchased homes. That prohibition means that in the first four years after the sale, the home may not be given in use to anyone other than the buyer. That regulation (called the Buy-Up Protection Regulation) was put in place to prevent investors from withdrawing owner-occupied homes from the owner-occupied housing stock, thereby driving up prices. However, homeowners can apply for a permit to rent out the property. However, it is not certain whether that permit will subsequently be obtained.

Realtor informed via email about rental ban municipality

During a viewing, the buyers' daughter discussed with the sales agent the possibility of her living in the home instead of her parents. In doing so, the sales agent indicated that this would not be a problem because the HOA rental does not prohibit. The buyers then made an offer, which was accepted by the seller. The buyers then asked the sales broker to help them rent out the property. Even then, the broker said this was not a problem. Only after delivery of the home did the broker tell the buyers that there is buyout protection and renting out can only be done with a permit. The buyers blame the broker for not telling them this earlier. All the more so because the municipality of Zeist had informed all real estate agents in the region via email that the buy-back protection scheme would be introduced.

Realtor violates NVM honor code

The real estate agent raises a defense, stating that he knew nothing at all about the intended letting by the buyers. Therefore, according to him, it is also irrelevant whether the Buyback Protection Scheme had already been introduced when the purchase agreement for the property was signed. The Board of Supervisors ignores that question. This is because the real estate agent did not dispute that he told the buyers' daughter that the VvE did not prohibit rentals. That mere fact shows that he knew that the buyers would not occupy the property themselves. For that reason alone, he should have informed the buyers about the Buy-Up Protection scheme that would apply. The real estate agent should have said that, as a result, there would be a municipal rental ban and a permit requirement if the home was to be given to the daughter for use.

Broker liability lawyer

According to the Supervisory Board, the broker had thereby violated the NVM Code of Ethics. Article 1 of this code states that the property agent must prevent an incorrect or incomplete perception of the property. This obligation applies not only to the property agent's client (the seller), but also to third parties, especially the buyer. According to the Supervisory Board, this applies especially if the buyer does not (also) have the assistance of a purchase agent.

NVM Honor Code: “(...)In their communications, they guard against misrepresentation of persons, things and rights(...).”

It is further telling in this case that the Supervisory Board concluded that of the real estate agency in question, almost all employees had no or at least insufficient knowledge of the rental ban in the municipality of Zeist.

Disciplinary law also leads to civil liability?

The Supervisory Board therefore declares the complaint founded. The broker is reprimanded for his actions. However, this disciplinary decision does not immediately lead to civil liability. Therefore, there is no immediate obligation on the part of the property agent to compensate for the damage. damage of buyers to be reimbursed. For this purpose, a proceedings on the merits needed in civil court. However, the disciplinary decision can help in those proceedings. It can prove that there has been a violation of standards, and thus a ground for compensation. liability of the broker. Lexys attorneys have years of experience litigating for or against brokers in liability matters. Take contact at for more information on what we can do for you.