Everyone is regulated – except influencers like Immo Tommy

On Instagram and TikTok, influencer Immo Tommy gives tips on how to build wealth with real estate. He promises beginners the perfect investment with his help. Tomislav Primorac calls himself “Europe’s biggest real estate influencer”. Not a broker, not an agent, not an advisor, but an influencer. No protected term and no license as is otherwise usual for financial advisors or real estate loan brokers under Section 34i of the German Trade Regulation Act. No necessary proof of expertise. No professional liability insurance (real estate loan broker liability) and no registration in the broker register.

“We cannot evaluate the business practices of the influencer Immo Tommy in detail,” says procontra the IVD Federal Managing Director Carolin Hegenbarth. Ultimately, this case serves as further proof that when buying property, one should only consult professionals whose qualifications are transparent and comprehensible. “We do not believe that banning influencers is the right or viable way,” says Hegenbarth. “They are certainly justified in making property purchases an option for inexperienced investors. However, the next steps should then be taken with real estate professionals.”

No watchdog for influencers

There is a big difference between an influencer like Immo Tommy and the members of the German Real Estate Association IVD, i.e. real estate consultants and brokers: IVD members must prove their qualifications and commit to lifelong training. They also recognize the IVD professional code of conduct. Dissatisfied customers of IVD members can also turn to the Real Estate Ombudsman as a confidant and mediator in disputes.

Immo Tommy has probably been supervised primarily by his followers so far. It is very likely that the courts will have to decide how Immo Tommy’s business should be assessed. But based on what we know about the situation so far, it is likely that the influencer did refer customers but handed them over to business partners at the crucial moment.

The financial supervisory authority BaFin is not responsible for cases like that of Immo Tommy. BaFin supervises banks and financial service providers, private insurance companies and securities trading. BaFin only comes into play if someone provides services in this area that require a license – in the case of suspected fraud, the public prosecutor’s office takes over.

Focus on the banks

BaFin is only likely to become suspicious if there is strong suspicion that banks have granted loans that exceed the actual value of the property and, above all, if this has happened on a larger scale.

According to the report by NDR and Spiegel, loan agreements document dubious financing structures between the largest German building society Schwäbisch Hall and various banks. When asked about the cooperation with Immo Tommy, however, the building society Schwäbisch Hall told procontrathat it has not and has never had a cooperation with Immo Tommy. In assessing the financing model described in the press, Schwäbisch Hall continued: This type of financing, which consists of a combination of a real estate loan and a building society contract with a building society loan – also known as a combination loan – is quite common and has clear advantages depending on the customer. It protects the customer against interest rate fluctuations throughout the entire term.

The lawyer for some of those affected, Georgios Aslanidis, assumes that the affected buyers can assert claims for damages. These could be based, for example, on fraudulent deception about the value of the property or defects in the property. In addition, there could also be claims based on concealed and/or excessive commissions.