According to the article Beware Legal Danger Zones published in the September 2009 edition of REALTOR® magazine, real estate agency issues continue to lead in the biggest source of lawsuits. These include breach of fiduciary duty, dual agency, agency disclosure, and buyer representation. The article goes on to state that they expect these issue to be more prevalent in the courts in the next two years.
On agency matters, breach of fiduciary duty is one of the biggest sources of disputes. The main problem, according to the Legal Scan, is that many practitioners are unclear about the breadth of responsibility owed to clients. “It is easy to underestimate or fail to appreciate the level of duty that is required,” one survey respondent wrote.
The report also cited problems with disclosure of agency relationship. Practitioners are supposed to disclose agency relationships at their first substantive contact with customers, but the disclosure is “often overlooked and not sufficiently explained to prospects,” one respondent said.
If you want to learn more regarding this important topic please visit our Agency category.
Image source: REALTOR® magazine.
