Findings for Principal-Agent theory and moral hazard in real estate

The present study confirms that there are information asymmetries between the market actors and tries to develop a set of rules indicating what type of information is not disclosed before a contract between the Principal and Agent is signed. The behavior of the real estate market actors is presented, focusing on the information they disclose before and after signing a contract. This will be presented from the owners’ (as buyers and sellers of commercial property assets), brokers’ (as advisors in real estate transactions), as well as appraisers’ (as service providers of property valuation reports) point of view.