On the occasion of a recent investigation by the Association of Realtors of Athens - Attica published by the president of the association Lefteris Potamianos, illegal brokerage in Greece lives and reigns.
Realtors act by promising to sell at a higher price to "undertake" the sale of the property. They believe that by "inflating" the value of the property, they will entice the owner to entrust their representation to them. It is a common phenomenon that, due to excessive valuation, they follow the course of the property to remain unsold.
This distortion has been present in the market since the period before the financial crisis, and has increased considerably since 2019. People who have no knowledge of the real estate market and lack financial literacy have invaded the real estate market, trying to take advantage of the growth of the space and make a quick and opportunistic profit. The damage they cause is multi-layered as it creates a revulsion in the majority of public opinion for the broker profession while they operate strictly for personal gain and not for the proper representation and excellent service of both the seller and the buyer.
The incomplete legislative framework today determines that the penalties that these people may face, in relation to a professional broker, are negligible. If a legitimate broker is found to be engaging in illegal practices, e.g. to deceive his clients, not to be consistent in his obligations, etc., he faces sanctions, such as license withdrawal and a fine of up to 30,000 euros. All a broker faces is a suspended prison sentence.
Much needs to be done to shield and strengthen the institutional framework for the suppression of illegal brokering. The counterfeiting of the civil contract broker profession creates multiple harms, not only in our industry, but also in the market, due to the lack of training and knowledge.
We urge you to trust the legal professional real estate agents. Ask to see the professional license as well as the personal GEMI number of your broker, from the first moment.
Thanasis Stamou
Director of INVESTA Real Estate
Vice President of the Association of Realtors of Larisa
