Real estate transactions are usually the biggest financial process and undertaking for anyone involved in the matter. We rely on and depend on expertise that provides guidance from real estate agents. Normally, they should help guide this complex process, which leaves a place of trust in them for their financial well-being and future. Doing this, while most agents operate with professionalism and integrity, we expect nothing less than that. However, not everything foes according to place. Consequentially, situations and problems occur where an agent fails to uphold their contractual obligations. As a result, this leads to financial losses and significant stress for their clients. At KAASS LAW, serving clients throughout California, we understand the intricacies of real estate contracts and are here to shed light on how real estate agents can breach these agreements.
The relationship between a real estate agent and their client is typically governed by a legally binding contract, often a listing agreement (for sellers) or a buyer-broker agreement (for buyers). These contracts outline the duties and responsibilities of the agent, the scope of their services, the duration of the agreement, and the agreed-upon commission structure. When an agent fails to fulfill these contractual obligations, it can constitute a breach of contract.
Loyalty refers to the duty of the real estate agent to act only in the client’s best interests when assisting them in their affairs. This means that doing something during the home buying/selling process that is meant to serve the agent’s or a 3rd party’s interests could constitute malpractice, even if it was not necessarily detrimental to the client.
Real estate agents and brokers are expected to use a certain standard of care when handling their client’s real estate transactions. The standard of care for agents is that of a competent real estate professional, one who has significantly more knowledge of real estate than the average person. Failure to act within the required standard of care would be a breach of contract.
It is required that agents do not disclose information that would hurt their clients’ chances of buying or selling a home for the best possible price. However, they are not required to remain confidential withholding the information would be a contract breach act itself.
While certain information must be confidential by real estate agents, they also have the duty to disclose certain information when they are both buying and selling a property.
A realtor assisting someone with buying a property must disclose information such as:
A realtor assisting someone in selling a property must disclose information such as:
Obedience simply means that the agent must obey the commands of their clients unless those requests are outlawed by either their contract or the law. The client has the ultimate say in whether they should take an offer or wait for a better one, for instance. The client cannot, however, tell them to hide the fact that the air conditioning unit must have a replacement.
Accounting refers to the agent’s duty to safeguard and keep track of all money and documents entrusted to them. This makes it their responsibility to make sure they correctly bill the client and do not release private or sensitive information, especially if it would hurt their bargaining power.
Real estate transactions involve significant investments, and you have the right to expect your agent to uphold their contractual obligations and act in your best interests. If you believe your real estate agent has breached their contract and you have suffered financial harm as a result, it is crucial to seek legal counsel. We can help in the following ways:
Review your contract: Analyze the terms of your listing agreement or buyer-broker agreement to determine the agent’s obligations.
Investigate the circumstances: Gather evidence to determine if a breach of contract has occurred.
Assess your damages: Help you quantify the financial losses you have suffered due to the agent’s actions.
Explore your legal options: Advise you on the best course of action, whether it involves negotiation, mediation, arbitration, or litigation.
Aggressively advocate for your rights: Represent your interests to seek the compensation and justice you deserve.
Entrusting a real estate agent with your property or your search for a home requires a significant degree of faith. When that trust breaks due to a breach of contract, KAASS LAW is here to provide legal support. Additionally, given the circumstances, we can represent that you need to navigate the complexities and pursue a just resolution. If you have concerns about your real estate agent’s conduct, contact us today for a confidential consultation. Our office can also help anyone who is dealing with real estate purchase and sale disputes.
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