Real estate agents must uphold high standards of professionalism and ethics; any failure to do so constitutes a breach of duty.
Before filing a formal complaint, gather all available information and documentation – such as emails, home inspection reports and contracts.
Lack of Communication
Real estate agents frequently receive complaints that they fail to communicate effectively, which can be an enormous frustration for buyers and sellers alike. Clients want to know exactly what is happening during a transaction and should never feel like they are left in the dark when there is an escrow issue or other pressing matter that needs addressing quickly.
Real estate transactions are complex affairs involving many parties. Clients may feel as if they’re working with professionals speaking a foreign language due to all of the industry jargon and terms being used; this can cause miscommunications and lead to misunderstandings between agents and buyers or sellers. Furthermore, some agents may employ high-pressure sales tactics which may make dealing with them unpleasant for either side.
No professional can guarantee that any real estate transaction will go smoothly, but all ethical Realtors should strive to reduce the likelihood of disagreement and ensure smooth transactions for clients by staying in contact, clearly explaining processes, and responding promptly to client concerns. This work falls squarely within their remit as agents.
Instance: If you are buying a home and your Realtor fails to disclose a termite infestation, this could constitute an ethical breach. If this issue remains unresolved, filing an ethics complaint with your local association of Realtors might be an option; before doing so however, make reasonable attempts at resolution with them first and be sure that all details surrounding your experience have been written down so as to provide a clear account of what occurred.
Real estate agents should make it a point to keep in touch with their clients and be available when needed. No matter whether the real estate professional is new to the field or experienced, taking steps to ensure effective communication can help prevent conflicts from escalating or even prevent malpractice claims altogether.
Misrepresentation
Misrepresentation is one of the more frequently heard complaints against real estate agents, including failing to disclose property issues such as its true value, presence of pests or environmental hazards, size or repairs in previous listings and more. Real estate agents who misrepresent properties may face fines or license revocation.
Real estate agent complaints should always be brought directly to the managing broker, who is ultimately accountable for all their transactions and actions. When meeting with this individual, be prepared with a detailed account of your grievance. It helps if you can be calm yet sincere as you present all facts without becoming emotional; additionally be ready with supporting documents such as contracts, inspection reports, correspondence between yourself and broker as well as any relevant information that may help back up your claim.
Filing a complaint against a real estate agent is an aggressive move that may jeopardize their livelihood, so it’s essential to do it only if absolutely necessary. Sometimes victims don’t recognize they were affected until much later when their license has been suspended by an administrative body.
Consideration should also be given when filing a complaint against a real estate professional that the statute of limitations will differ depending on which state it occurs in. Some have statutes of five years or longer while other may allow much shorter deadlines.
Once you have collected all the relevant information and documentation about your real estate agent complaint, it’s time to file it. While filing procedures vary by state, many real estate commission websites feature forms you can fill out and submit directly. An Internet search using keywords such as “real estate commission (state name)” should provide results; fill out and carefully submit the form.
Unfair Dealing
As a real estate agent, you must adhere to the ethical standards set forth by your state licensing authority. If you suspect your Realtor of breaching their fiduciary duty or acting unethically, filing an official complaint may be the appropriate response. Before starting this process however, first attempt to address your concerns directly with them. Sometimes this can be accomplished simply by conveying them clearly and calmly in person or via telephone conversations – to increase chances of resolution it would be advisable to compile documents that support these claims such as contracts, emails, texts or phone calls in preparation for this meeting or phone call so as not to get lost during discussions.
Review any paperwork or business cards your agent might possess in order to identify national or state real estate associations they belong to, such as home inspectors, lenders and appraisal firms who belong to the National Association of Realtors (NAR), an organization which requires members abide by an ethical code of conduct. Look out for their seal or logo to see if an agent belongs.
If your grievance cannot be addressed directly with an agent, it may be worthwhile reaching out higher in the company. An official complaint against them can often be lodged with their broker, manager or owner; as these individuals oversee agent conduct it’s likely they’ll be more amenable to hearing out your issues than individual agents would.
Once a complaint is filed, the state will conduct an investigation of your claim, possibly covertly in cases where contact with the agent could compromise its outcome. Once this process is finished, a hearing will take place to ascertain if any ethical violations have occurred and, depending on their findings, may impose sanctions such as reprimanding, required education courses, suspension of membership/licensing privileges or even permanent revocation in extreme cases.
Fraud
Real estate agents who are accused of fraud often face severe repercussions, including suspension of their license and other penalties. Such allegations may also damage a Realtor’s reputation and hinder their ability to acquire future clients. If you suspect your agent of engaging in any form of misconduct, it is crucial that a complaint be filed immediately.
Real estate agent complaints should be submitted in writing to your state’s governing body or local real estate association, such as Greater Rochester Association of Realtors (GRAR). Once received, this investigation may involve interviewing witnesses and reviewing documentation – the GRAR will notify your Realtor of this complaint and give them time to respond.
Many real estate agent complaints can be addressed informally; for instance, disagreements over commission could be resolved through renegotiating your contract or using an alternate fee structure. However, if there is evidence that an agent acted unethically and caused financial loss for you personally, it’s essential that they come before the appropriate authorities immediately.
Filing a complaint before closing and any commission payment can protect against agents misusing any money they earned unnecessarily, increasing your chance of recovery and receiving restitution.
Once your complaint has been lodged, your state governing body will investigate and assess if there was an ethical violation. If so, hearings will be scheduled so both agent and complainant have an opportunity to present their cases before an impartial panel before sanctions are implemented; such sanctions could include reprimands, mandatory education courses, suspension or even permanent revocation of license in extreme cases.
Be mindful that only members of the National Association of Realtors are licensed real estate brokers and agents, with those not in membership not adhering to its Code of Ethics nor using the term “Realtor” in their business practices. Although GRAR can impose sanctions against agents who aren’t members, these are less severe than what might be imposed by states.