I’m particularly troubled in real estate transactions when I observe real estate agents acting in their best interests and not their clients’. The relationship between agent and client is that of a fiduciary and principal and the agent owes a fiduciary duty to her client.
Fiduciary Duty: A legal requirement of loyalty and care that applies to any person or organization that has a fiduciary relationship with another person or organization. It’s a duty is one of complete trust and good faith. And “breach of fiduciary duty” is a great little negligence action.
Sadly I see this duty ignored if not legally breached WAY too often. Some recent observations from my real estate world…
Dual agency a/k/a loyalty to no one. I’ve been dealing with a sad situation regarding some recent buyers that we represented. Long story short their sellers likely were fraudulent and in violation of various disclosure laws concerning some basement flooding that existed in the property and they surely knew about prior to the sale. They’ll be dealt with accordingly but the “dual” real estate agent who surely wasn’t acting in the buyer’s best interest likely will be receiving a little summons too.
Encouraging LESS/NO Contract negotiation. I get very uncomfortable if a real estate agent remains too involved in contract matters subsequent to a contract’s signing and it’s beyond just “lack of comfort” when my client’s agent overtly works against my client’s interests. For example, the agent recently who specifically discussed backing off of some of our proposed contract/inspection requests that were raised specifically by our client.
Over-Bidding. Any reason to bid above the listing price on a long-listed foreclosure property? Likely not…oh wait the agent’s commission is based on purchase price…sure.
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