Common Real Estate Broker Conflicts
Real estate brokers can be sued when they violate their obligations. Conflicts of interest are a breach of fiduciary duty, and they can be grounds for a lawsuit. Here are three examples of common real estate broker conflicts.
Direct Buyer Preference
If you are selling a home, your listing agent could earn double the commission if they represent the buyer too. However, they may recommend their own buyer who has presented an inferior offer. This costs you money while padding their own pockets. You may find yourself accepting less money or stuck with a buyer whose financing falls through.
Recommending a Lower Offer
Your real estate agent is paid on commission. They do not get their check until your deal closes. The faster the transaction closes, the quicker they get paid. The agent could recommend that you accept a lower offer in the name of speed, so they could receive their commission. This allows them to move on to the next client and deal.
Not Fully Shopping Your Home
After you have an offer or two, your real estate agent may think that their work is done. It is more profitable for them to work on new clients or find new deals than to help you maximize your own sales price. One offer should not be the end of your sale. Multiple offers spark a bidding war, and that puts more money into your pocket. However, your agent may not put in the time because they are putting their own interests ahead of yours.
Speak with Encino Real Estate Attorneys
The Urbach Law Offices could help you file a lawsuit if you suffered damages from your real estate broker’s conflict. Call us today at 888.212.9071 or contact us online to schedule a consultation to discuss your case.