A real estate agent is given a trusted position by being involved in transactions representing the largest investment that most people will ever make. When an agent fails to uphold that trust, they may be subject to a variety of legal actions through a real estate attorney in Walker, MN. Below is a list of the most common legal claims against real estate agents.
Fraud
A common claim made against agents is fraud. In most instances, proving fraud requires the plaintiff to show that the agent had the intent to misrepresent facts, deceive, or defraud for their own personal gain. Fraud can be an action such as lying or it can be an act of omission.
Contract Breach
Another claim commonly made by clients is for contract breaches. Such legal claims assert that the agent violated the agreement with the plaintiff. Typically, the real estate agent wouldn’t be sued because they aren’t usually party to the agreement, but they can face legal action for violating other contracts such as broker’s agreements.
Duty Breach
A claim for a duty breach can arise along with a contract breach claim. Real estate agents have a fiduciary responsibility to act in the client’s best interest, and that duty requires them to represent the client even in cases where they stand to make less money. Moreover, maintenance of the duty requires agents to act to the best of their abilities when representing a client.
Negligence
Many civil cases involve an element of negligence. Here, the plaintiff and their real estate attorney in Walker, MN assert that the defendant breached a duty and that the breach of duty caused harm. In real estate, the duty of care must be outlined in a contract, but it can be assumed given the nature of the agent-client relationship.
Identifying the Defendant
When a plaintiff suffers damage due to a real estate agent’s omissions or acts, Brainerd Law may identify entities or people who share the blame. The agent is often the first defendant to be named, but other parties may have responsibility depending on the case’s circumstances.
Insurance
Due to a high likelihood of litigation, some insurers offer coverage that works in the same way as malpractice insurance. Usually called E & O, or errors and omissions insurance, it covers instances where a real estate agent makes a mistake related to a contract, escrow, or property values. However, E & O insurance does not cover fraud or other intentional conduct.
