The Financial Supervisory Authority of Norway has imposed a NOK 200,000 administrative fine on an estate agent for altering a power of attorney for a property sale without the principals’ involvement. The authority found that the deliberate changes constituted a serious breach of good estate agency practice and central professional duties, capable of undermining trust in estate agents. It opted for a fine rather than the previously contemplated revocation of the agent’s license. The case concerned a sale handled by In-Vest Eiendomsmegling AS on behalf of two heirs. The agent added permission to transfer the power of attorney and separately deleted wording that prohibited the heirs’ representative from receiving the settlement funds. These changes were made weeks apart while the agent was attempting to resolve problems with the transaction. The authority concluded that the agent had time to consider alternatives and should have involved the principals rather than unilaterally changing the document. Although no third party suffered a financial loss and the agent had no motive of personal financial gain, the authority found that changing who could receive the settlement funds created a risk of loss. The penalty reflected the seriousness of the conduct, the agent’s intent and deterrence considerations. Cooperation with the investigation, acknowledgment of the facts and remedial measures counted in mitigation.
Financial Supervisory Authority of Norway fines estate agent NOK 200,000 for unauthorized changes to a power of attorney
The Financial Supervisory Authority of Norway has fined an estate agent NOK 200,000 for deliberately altering a power of attorney without the principals’ involvement, including changing who could receive settlement funds. The authority treated the conduct as a serious breach of professional duties but imposed a fine rather than revoking the agent’s license. No financial loss occurred, while cooperation, acknowledgment of the facts and remedial measures mitigated the penalty.