Broker Malpractice Attorney – Failure to Represent Both Parties

Buying your dream home or selling a property comes with many ups and downs, and no transaction goes exactly as planned. However, there are cases where things go wrong because of broker malpractice, i.e., negligent or unlawful conduct by a realtor that causes harm to one or both parties in a real estate transaction.

Real estate agents are required by law to make full and accurate disclosures regarding the properties they sell. If they are representing both the buyer and seller, they also have a duty to represent both parties’ interests in a fair and balanced manner. Failure to do so is a common source of lawsuits in California, which we can discuss with you in detail during a free, private consultation.

We understand the anxiety and frustration you are going through as a victim of real estate broker negligence or misconduct. Please contact us today and schedule a time to speak with a California broker malpractice attorney.

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Dual Agency on a Real Estate Transaction

As a general rule, it’s advised that both parties in a legal transaction find their own representative – for example, each party in a lawsuit should hire their own lawyer. With real estate sales and purchases, however, it’s very common for the same agent to represent both parties, meaning that one broker is acting as a dual agent.

While this is a standard practice, there are undoubtedly risks that are associated with dual agency by a real estate agent. Thus, it is required by California law to have the agreement put in writing and signed by all the involved parties. However, a realtor can still be negligent of care to one or both clients, though most of these cases are due to a failure to properly represent one of the parties. In short, the broker is favoring one side over the other or putting one party at a clear disadvantage.

Fraudulence by a real estate agent that results in monetary loss is grounds for a broker malpractice lawsuit. If you would like to learn more about lawsuits for failure to properly represent the parties in a real estate purchase or sale, please contact our office.

Obligations of a Real Estate Agent

In order to prove negligence by a realtor, you must show that there was a violation of one or more duties that was owed to you as a client. The responsibilities of a real estate agent during a transaction include:

• Duty to investigate – a real estate agent must investigate the material facts of the transaction, meaning they must research and verify the information for themselves and not just go by the word of others.
• Being fair and honest – brokers must be honest with each party that is involved in a real estate transaction and ensure that they are not pursuing the interests or one party over the other.
• Duty to disclose – realtors must disclose any material facts that impact the price of the property, meaning they cannot know about a specific problem and fail to disclose it to either the seller or buyer. Doing so constitutes constructive fraud by a real estate broker. They must also disclose any information about profits and commissions from the sale and any offer / counteroffers.
• Duty to disclose conflicts of interest – for example, the realtor may have a close relationship to one of the parties (friend or family member).
• Duty of reasonable care – agents must use the full range of their skills to help a client and only provide representation if they have the necessary experience (for example, not offering to act as a dual agent on a commercial property sale when they have never sold such a property)
• Privacy – relators have a legal obligation to protect sensitive information about their clients that undermines their position in a sale or purchase
• Duty to obey client instructions – it’s fine for a broker to provide their own opinion on insight, but they must ultimately do things by the client’s instructions. Thus, it’s not acceptable for a real estate agent to change any terms that are part of an offer or counteroffer.

Am I Eligible for a Broker Malpractice Lawsuit?

Even if the agent caused problems for you during a property transaction, you still have to prove specific elements regarding their actions and how they affected your life in order to go ahead with a lawsuit. Though a further discussion is needed on this subject, here are the basic elements that establish your right to sue a real estate agent for breach of duty:

• The realtor acted on your behalf for the purpose of buying or selling a property.
• The realtor failed to exercise the level of care that would be expected of a property broker under similar circumstances.
• Due to the agent’s failure to act with due diligence / reasonable care, the plaintiff suffered financial harm.
• The broker’s conduct played a significant role in the harm that was caused to the plaintiff.

The most difficult factor to prove is the last one, as a violation of one’s fiduciary duty to a client may not be significant enough to merit a lawsuit. Basically, the realtor’s negligence must make a material difference to the end result of a real estate transaction. This is why it’s important to discuss the details of your case with a real estate fraud lawsuit attorney as soon as possible.

What Do I Do if a Real Estate Agent Failed to Represent my Interests?

Do you believe that a real estate broker failed to adequately represent you in a dual agency property purchase or sale? If so, here are the steps we recommend:

• Reach out to a Real Estate Attorney Immediately – first and foremost, you’ll need to have an understanding of your rights and legal options. A lawyer with experience in California laws pertaining to real estate agent malpractice is the best source of information.
• Gather evidence – make sure to gather and organize any and all documents related to the transaction. This includes all communications with the real estate broker, signed agreements / contracts, and information about the property in question.
• File a complaint – if it’s necessary, your lawyer can help you file a claim with the relevant licensing board, like the California Department of Real Estate. This is the government agency that licenses real estate agents and investigates complaints of fraud and other unlawful acts by property brokers.

The Real Estate Litigation Lawyers of Normandie

Our attorneys have decades of experience in real estate broker malpractice, and we are more than ready to fight for your rights as someone that was harmed by negligent conduct. These are extremely complex lawsuits, and the road to justice won’t be easy, but we are here to guide you every step of the way.

During this time, you don’t have to worry about legal fees, as we have a contingency fee structure. That means the cost of representing you is collected at the end of your case after you receive payment from the defendant. If we fail to secure your settlement from a successful broker malpractice lawsuit, you owe us $0 according to the Zero Fee Guarantee.

It all starts with a free consultation, so contact our law firm at your earliest opportunity.