Real Estate Agent Didn’t Breach Fiduciary Duty, Court Rules

When someone goes wrong with the purchase or sale of a home, many people are quick to blame the real estate agent involved. However, the agent is not always at fault, especially when the client has an obligation to fully read and understand the terms of a contract they are signing.

A woman hired a real estate agency to sell her townhome and buy a new home. She signed an exclusive buyer agency agreement and visited a development with the agent to look at a home. She asked her agent to negotiate changes to the sales contract related to the interior design.

The sales contract that disclaimed warranties of merchantability, fitness and habitability and limited damages. However, the woman did not read the full contract because she was told by her agent that it was a “standard contract.”

After the woman moved in, she discovered various defects, including electrical issues, water problems, and cracks in the foundation. The repairs were estimated at up to $91,000. The woman sued the real estate agent for breach of fiduciary duty and negligence. The agent moved to dismiss the suit under summary judgment. The trial court granted this, but the woman appealed.

The woman argued that the real estate agent breached his duty by calling the developer’s contract “standard” and not explicitly advising her to seek legal advice. She considered that to be an unfair and deceptive practice. However, the court did not agree, claiming there was no specific evidence that the agent’s remark could be construed to mean that an attorney review was not necessary. In fact, the exclusive buyer agency contract explicitly included statements such as  “Buyer is advised to seek other professional advice in matters of law, taxation, financing, insurance, surveying . . .” and the “buyer also agrees to indemnify and hold firm harmless . . . as a result of . . . buyer’s election not to have one or more of such services performed.”

Under the law, a person who signs a contract has a duty to understand its contents. By signing the contract, you’re held to what is contained in the contract, so it’s important to have full knowledge and understanding of what it entails. Because the woman did not ask her agent about the legal terms of the contract, the agent’s duty was satisfied through the buyer agency agreement.

Keep Your License With Help From a Tampa Real Estate Sales Associate Licensing Lawyer

When it comes to contracts, clients need to read them thoroughly. They have an obligation to ensure they fully understand them. They cannot blame their real estate agent later when something happens.

Dealing with an issue from a disgruntled client? Your license could be at risk. Seek legal help from a Tampa real estate sales associate licensing lawyer from The Law Offices of David P. Rankin, P.A. I have been involved in several hundred license discipline proceedings before the Florida Real Estate Commission and was the attorney for the Greater Tampa Realtors for 18 years. To schedule a consultation, fill out the online form or call (813) 968-6633.

Source:

nar.realtor/magazine/real-estate-news/law-and-ethics/it-was-all-in-writing