As a real estate professional, your agent owes it to you as their client to place your interests ahead of their own. If they violate this duty in any way, report them immediately to your state licensing board.
Begin by gathering documentation – emails, contracts and any other pieces that support your claim will make filing a complaint simpler.
1. Misrepresentation
As purchasing and selling property involves both large amounts of money and personal information, it is imperative that real estate professionals are trustworthy. Unfortunately, some real estate agents engage in unethical behavior that could cause financial loss and legal proceedings against you. If you suspect that any real estate agent misrepresented property details, pricing, or facts related to it, it is imperative to report them immediately to an organization responsible for real estate licensing and regulation.
When reporting real estate agents for misconduct, be sure to compile written evidence of it – such as emails or text messages which provide evidence. In addition, provide a written account of what transpired as well as your explanation why it occurred and why you believe it to be inappropriate – this will aid both investigations as well as deter future agents who might consider engaging in similar behaviors.
Misrepresentation is a form of fraud in many jurisdictions that occurs when an individual makes false statements to induce another party into entering into a contract with them. Misrepresentation can be an extremely serious crime that could lead to contract rescission and damages depending on its circumstances, while real estate agents found guilty of misrepresentation could even lose their license to practice within their industry.
An effective way to identify any potential problems with real estate agents is by seeking testimonials or references from previous clients. This will give an idea of the quality of service that they can expect; any agent refusing to provide these could be an indicator that they have something they wish to hide.
If you believe your real estate agent has misrepresented property or information, take the following steps. Reach out to the agency with which the agent is associated and voice your concerns; the agency may be able to resolve the matter or at least take internal disciplinary measures against them.
2. Unethical Conduct
Real estate agents abide by a set of regulations and standards that govern their professional conduct. Some states mandate licensing requirements, while organizations provide specific guidelines covering niche issues. If an agent violates these guidelines, legal or ethical ramifications could occur.
Unethical real estate agents may put their own financial interests ahead of those of their clients, for instance by suggesting a lender for mortgage loans they receive kickback from. Such conduct is illegal and can severely damage long-term client relationships.
Failure to disclose material information about a home can also constitute unethical behavior on behalf of real estate agents, and buyers. It’s essential that buyers receive all the facts before making a decision based on sound information – and to prevent unexpected surprises down the road. Some agents advise their sellers against disclosing a property’s past history with mold, asbestos or radon which puts both seller and buyer at significant legal risk even when no issue surfaces during home inspection.
Real estate agents who engage in unethical conduct include using deceptive marketing practices to win more business. This may involve editing listing photos or rounding off square footage to increase interest in a property. While both sellers and agents want their listings to present as favorably as possible, any falsification that hinders a potential sale cannot be tolerated.
Real estate agents must disclose any issues discovered during home inspection, such as health concerns or structural defects, to their client. Although some agents may try to cut corners by bypassing this step in order to close deals faster, this behavior would be both unethical and illegal.
Before filing a formal complaint against an unethical real estate agent, try directly approaching them about it. Present the situation calmly and clearly while explaining why they acted unethically. Sometimes just reestablishing communication may resolve the matter without incurring further costs or hassles.
3. Fraud
Fraud can occur at various points during the real estate process, making it essential to be on guard in order to protect both yourself and your clients from fraudster tactics like impersonating real estate professionals, falsifying credit reports or employment records in order to obtain financing, or using false names in order to conceal their identities.
Fraudsters often use pressure tactics such as inciting buyers and sellers to make quick decisions quickly by promising that prices will increase or there is only limited availability, persuading victims into disregarding warning signs and failing to conduct adequate due diligence, leading them down a path toward financial or property loss.
Real estate agents should remain wary of seller impersonation fraud, which involves someone impersonating an actual property owner to sell one they don’t actually own. This form of deceit usually takes place through email or text and often involves fake titles and deeds as well as falsified notarizations and other forms of forgery – according to research from CertifID title agencies are losing significant sums through such schemes.
Wire transfer fraud is another significant problem within the real estate industry, often occurring when fraudsters pose as real estate agents and induce clients into wiring funds to an illicit account – often after signing documents electronically. It is especially prevalent with luxury properties and international buyers; thus it is vital for real estate professionals to verify whether any wire instructions provided by their clients are authentic before following through with them.
Real estate agents should keep abreast of industry trends and be on the lookout for any new forms of fraud. Seller impersonation fraud has become more prevalent, so agents should validate their own license using New York State’s public license search website and calling the number associated with their real estate professional’s license address to confirm identity. They should always use a reliable escrow service and never transfer sensitive data through unsecure means.
4. Breach of Fiduciary Duty
Homebuyers or sellers who entrust a real estate agent as their fiduciary agree to uphold certain responsibilities and duties; failing to do so could incur legal liability for breach of fiduciary duty.
Fiduciary duties differ by state; however, many have laws in place that outline real estate professionals’ responsibilities toward their clients – these duties generally include loyalty, disclosure and care. Real estate professionals owe it to their client to act in their best interests without seeking any conflicting personal gains; that means not buying listed properties solely to flip for profit, for instance. Real estate agents have an obligation to disclose all pertinent transactional information to their clients, including real estate trends and market data, as well as any potential conflicts of interests which might compromise their bargaining position.
If a real estate agent breaches their fiduciary duty, they could be held accountable. Damages often cover financial losses sustained as a result. For instance, if they conspired to sell your home at less than it should have sold for, they may need to compensate you the difference through a lawsuit filed for breach of fiduciary duty.
There are various ways a real estate agent may breach their fiduciary duty, but one of the more frequent violations involves failing to act in your best interest when selling your home. This can range from showing offers lower than what could have been accepted; failing to keep confidential any information that might compromise your bargaining power; and accepting kickbacks from contractors helping sell homes.
If you suspect your real estate agent has breached their fiduciary duties, it is crucial that you act quickly. Consulting a lawyer is the best way to understand your options for recourse; their help filing a formal complaint against the agent could result in sanctions such as forfeiture of their commissions, restitution payments, rescission proceedings and legal fees being assessed against them.