Duty of Disclosure
Real estate agents are obligated to disclose all relevant and material information to their principals. They must disclose facts affecting the value or desirability of a subject property as well as transactional details such as the other party’s known bargaining position or intent for use of the property. While brokers are only required to disclose material defects in the property to non-principals, they must tell their principals all facts that might influence the bargaining process. For instance, if a real estate broker representing a buyer fails to inform the buyer that a house was the subject of a stigmatizing event, such as a murder, then the buyer may have a claim of broker malpractice.
Breach of Confidentiality
Real estate brokers are required to keep confidential information that may weaken their principal’s bargaining position. For instance, if a real estate agent representing a buyer discloses to the seller that the buyer is secretly willing to pay more for the seller’s property, and the purchase price becomes inflated as a result, the buyer may maintain an action for real estate broker malpractice.
The Messina Law Firm, Pc: Proven Results in Real Estate Broker Malpractice Cases
Our real estate law firm and attorneys have successfully represented clients in real estate broker malpractice cases. Most recently, the firm represented buyers of property who were unaware of the effective demolition of the subject property. The listing broker was aware that the seller, his client, had torn out almost everything of value in the house. The listing agent was also aware that the firm’s clients, the buyers, were out of town and funding the property with the assumption that the fixtures and improvements would be left. The listing agent chose to not tell anyone about what he knew, presumably because he did not want to jeopardize his fee. This sort of behavior is not acceptable in Texas, and The Messina Law Firm, PC will seek justice and compensation for not only our clients in this case but in any other instance in which a real estate agent takes advantage of a situation.