Buyer agent made an error in judgment

[James McGovern]

A buyer agent made an error in judgment and caused the buyer to lose their deposit. Should the buyer sue the agent?

[Jeff Copeland]

Impossible to answer without knowing more details. 

But first you need to review (or better yet, have an attorney review) the written representation agreement between the agent and buyer (often referred to as a Buyer Broker Agreement or BBA). It will dictate what type of legal action the buyer can and can't take (for realtors, it's often limited to mediation and/or arbitration), what the buyer agreed to waive or hold harmless, and who pays the legal fees in a dispute. 

For example, the Florida BBA states:

DISPUTE RESOLUTION: This Agreement will be construed under Florida law. All controversies, claims, and other matters in question between the parties arising out of or relating to this Agreement or the breach thereof will be settled by first attempting mediation under the rules of the American Arbitration Association or other mediator agreed upon by the
parties. If litigation arises out of this Agreement, the prevailing party will be entitled to recover reasonable attorney's fees and costs, unless the parties agree that disputes will be settled by arbitration as follows: 

Arbitration: By initialing in the space provided, Consumer () (), and Broker or Authorized Associate (_) agree that disputes not resolved by mediation will be settled by neutral binding arbitration in the county in which the Property is located in accordance with the rules of the American Arbitration Association or other arbitrator agreed upon by the parties. Each party to any arbitration (or litigation to enforce the arbitration provision of this Agreement or an arbitration award) will pay its own fees, costs, and expenses, including attorney's fees, and will equally split the arbitrator's fees and administrative fees of arbitration.