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Posted over 16 years ago

Why agents get sued by a real estate expert

In my real estate work in San Jose area,  I continue to get called as an real estate expert witness when agents get sued.  You might wonder what an expert does.  In most cases, the buyer sues the seller and some times the listing agent, accusing them of not disclosing something.  They may or may not sue their agent.  But,  the Seller and listing agent usually cross-file against the Buyer's agent because they had the fiduicary duty to help and warn the buyer about issues.

Frankly, it is sometimes hard to defned the Buyer's agent because too many operate from the custom and practice of thinking that by simply giving the buyer the disclosure documents (without explanation),  they have fullfilled their duty.  Not so,  at least according the the 200 or so cases I have been involved in.  The fiduciary has the primary duty to help buyers understand the issues and when inspection or other disclosures are provided,  that agent has a duty to review those disclosures and point out the potential "tip of the iceberg" to the buyer.  Then,  once they do that,  they have a duty to advise them what the agent would recommend.  Then,  they wait for an answer. 

Agents argue about this all the time e.g.  the buyer saw the pest report which called the bath floor for $400,  so why blame me? Because you failed to tell them that once the floor is open and we find $4000 of additional damage,  the buyer has to eat it.....that's why.

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