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Real Estate Broker Malpractice Lawyer


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Buying or selling a property is not a short and easy process for most people, and there are plenty of ups and downs that can happen along the way. But once you have secured the property in question, you expect your struggles to be over. Unfortunately, that may not be true if the broker that handled the transaction engaged in unlawful or negligent conduct. This is known as broker malpractice, and if you are a victim, you have the right to sue the real estate agent for monetary compensation.

Realtors in California have many duties and responsibilities to the clients they serve. This includes fairly and accurately representing both parties in a sale or purchase if the realtor is acting as a dual agent. When a realtor breaches their duty of care, the client may be left to deal with significant financial and legal issues.

We know that this is a stressful time in your life, filled with worry and anxiety for what is to come. The broker malpractice attorneys of DTLA Law Group are with you every step of the way. Please contact our office at your earliest convenience and schedule a free case review.

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Acting as a Dual Agent

When it comes to a business deal, each side typically consults their own experts, such as lawyers and accountants. That happens with real estate transactions as well, but in California, it’s common practice for one realtor to represent both the seller and buyer.

This is known as dual agency, and there are pros and cons to this arrangement that you should be aware of before you agree to have one broker act for all the involved parties. For one thing, dual agent agreements must be in writing and signed by the seller and buyer under California law. But even with a written agreement, there is always the potential for the realtor to act unlawfully or let things slip through the cracks. The vast majority of cases we handle are due to a failure to properly represent the parties, whether it’s due to a conflict of interest or not disclosing all the relevant facts about a property.

Negligence or outright fraud by a realtor that causes financial harm should not go unpunished. With help from our legal team, you can pursue a lawsuit for real estate malpractice, which you can learn about by contacting our law firm.

Responsibilities of a Real Estate Broker

Every case for broker malpractice needs to meet legal standards that are established by the state of California. The first step to understanding your rights begins with an overview of the duties that a real estate agent has to you as one of the parties in a property sale or purchase. A realtor’s professional responsibilities include:

  • Investigation – a property broker has a duty to research and verify all the material facts of a transaction, and not just rely on what they are being told by someone else.
  • Being honesty – realtors have a legal duty to be accurate and honest with each of the parties they are representing, and ensure that they are both receiving the same information.
  • Disclosure – brokers must offer full disclosure of all material facts about a property. If a broker deliberately withholds information that causes financial harm to one of both parties, they may be sued for constructive fraud.
  • Conflict of interest – any conflict of interest, such as a brokers’ personal relationship to the seller, must be disclosed to the buyer. Realtors must also disclose information about commissions and profits they are to receive from the sale.
  • Standard of reasonable care – all the actions taken by a real estate agent on behalf of a client must meet the standard of due diligence and professional conduct that is expected of a realtor in a similar situation.
  • Privacy – real estate brokers are legally obligated to protect private and sensitive information about a client if it undermines their position in a property transaction.
  • Following the client’s instructions – ultimately, you are in control when it comes to selling or buying a property, so a real estate agent cannot override your request when it comes to an offer / counteroffer or specific terms that are in violation of the law. If they make any changes or take certain actions that affect the sale without your consent, you may have a case for broker malpractice.
Your Right to Sue for Malpractice by a Broker

Even if a real estate agent didn’t do everything as they should during the sale or purchase of a property, that doesn’t automatically give you the right to sue them for monetary damages. There are clear and specific elements that have to be established in order for the courts to allow a real estate negligence lawsuit. These include:

  • The broker owed you a duty of care as one of the parties in a transaction for a residential or commercial property.
  • The realtor breached that duty of care by failing to act in a manner that would be expected of any realtor under similar circumstances.  
  • Because of the agent’s negligence, you suffered monetary losses from the purchase or sale of a property.
  • The harm you suffered was caused primarily by the realtor’s conduct.

This last element is difficult to prove, since there are many things that go wrong during and after a real estate transaction. And it’s possible that your realtor did everything by the book, yet you still ended up with significant legal and financial problems that are associated with a piece of real estate. This is why assistance from a California broker malpractice lawyer is essential if you believe that you are a victim of negligent or fraudulent conduct by a real estate agent.

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Steps to Take if You were Harmed by Broker Misrepresentation

As a general rule, people are unaware of the actions they can take if they were failed in a real estate transaction by their broker. If have reason to believe that your realtor failed to represent your interests while acting as a dual agent, you can:

  • Talk to a real estate lawsuit attorney – you should do this right away from the moment that you suspect your realtor is to blame for issues with a property you purchased or sold. That way, you have an understanding of your rights and whether you have a good chance of succeeding in a lawsuit.
  • Compile evidence – collect and organize all evidence related to the transaction, like information about the property, written contracts between you and the involved parties, and all communications to and from the real estate agent.
  • File a formal complaint – depending on the circumstances, you may want to file a complaint with the California Department of Real Estate, which is the licensing board for all real estate agents in the state of California.
Contact DTLA Law Group

Our team or real estate litigation lawyers are here for you 24 hours a day, 7 days a week if you are a victim of failure to provide proper representation by a realtor. The legal experts at our office have decades of experience with broker malpractice lawsuits, and we are more than ready to fight for you and the justice you deserve.

We accept all cases on contingency, so there is nothing for you to pay out of pocket. Our expenses are recovered once we obtain your settlement, so in other words, we have to win your case in order to get paid. To provide you with additional assurance, you will be protected by the Zero Fee Guarantee to ensure that you won’t be responsible for legal fees if you don’t receive payment from the party at fault.

If you are ready to discuss your rights and legal options with one of our legal experts, please reach out to us for a free consultation.


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