Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
What are the obligations of the selling agent in terms of their clients (people selling their homes) doing what is required by real estate law? If the agent knows their client has violated a signed contract (with a financial impact against the buyer), or has done anything that violates real estate law or general real estate ethics (if that's a specific thing, I don't know), is the agent obligated to 1) Inform the client that what they are doing is wrong/illegal, 2) Encourage the client to act in accordance with RE law, 3) Require the client to act in accordance with RE law, 4) Merely put the client's financial interests ahead of all else, 5) Report the client's violation, or ???? Does the selling agent have ANY obligation to see that the buyer is not "swindled" by unethical/illegal actions of the seller?
Scenarios could include failure to disclose a known problem, lies in the description of the house (like saying the roof was 2 years old when it was actually 8), damage caused to the house after an offer was accepted, taking appliances that were written in the contract as to convey, etc.
All agents are expected to be "fair and honest" with all parties.
#3 is problematical. The agent cannot require "require" much of anything. About all the agent can do is disclose to the other parties, after telling the client they won't play along with the scheme.
#4. No. We cannot swindle people and hide behind "fiduciary duty" to our clients. Nope.
Otherwise, it seems to me you have described expectations fairly well.
Most of your examples are things the selling agent wouldn't likely know. Requirements also vary by state and especially depending on specifics.
Damage after the offer? You have an inspection clause. Did you mean to write after inspection? Do you have a walkthrough clause? What kind of damage and how would the selling agent know? Specifics are important. Scuff from moving furniture vs a roof collapse are going to net very different situations.
Anything listed as age, size etc is subject to verification by you and your inspector during the due diligence period. Caveat Emptor. Buyer has immense power once the contract is signed and within their due diligence period. As such you have immense responsibility to verify and ensure your purchase meets your requirements.
Failure to disclose a major, hidden item can cause recourse but you must prove the seller knew about it and the extent. That can be difficult in reality.
How can a selling agent know the seller took appliances?
What are the obligations of the selling agent in terms of their clients (people selling their homes) doing what is required by real estate law? If the agent knows their client has violated a signed contract (with a financial impact against the buyer), or has done anything that violates real estate law or general real estate ethics (if that's a specific thing, I don't know), is the agent obligated to 1) Inform the client that what they are doing is wrong/illegal, 2) Encourage the client to act in accordance with RE law, 3) Require the client to act in accordance with RE law, 4) Merely put the client's financial interests ahead of all else, 5) Report the client's violation, or ???? Does the selling agent have ANY obligation to see that the buyer is not "swindled" by unethical/illegal actions of the seller?
Scenarios could include failure to disclose a known problem, lies in the description of the house (like saying the roof was 2 years old when it was actually 8), damage caused to the house after an offer was accepted, taking appliances that were written in the contract as to convey, etc.
Each state will have different agency requirements.
In Oregon, a listing agent (who is NOT the selling agent, by the way), needs to deal honestly and act in good faith towards their own clients as well as the clients of the buyer agent, to provide timely communication of documents and such, and to disclose any known material facts. So...
Depending upon what the financial impact situation is, the listing agent would be required to pass along any communications from the buyer agent regarding that situation to the sellers.
1) Yes, if there is a situation where a seller intends to do something that is fraudulent, it would be expected in Oregon that the seller be advised of that.
2) Encourage them to comply with laws? Yes, agents should do that.
3) Require them to act in accordance with laws? No. Agents can't do that. People who buy and sell homes are adults and are responsible for their own decisions.
4) Agents have a fiduciary duty to be loyal to their clients and not take any actions that would be detrimental to them, per Oregon agency laws. That doesn't mean committing fraud for them though. So this is a fine line that depends on a situation.
5) Report the seller's violation? Report a crime? Report to the buyer? Not sure what you mean here. If it is a material fact, then the agent would be required to disclose it to a buyer or their representation.
Lies in the description of the house? That's an agent issue.
Damage to the house after an offer was accepted? We have a clause that addresses that in our contracts. You don't?
Taking appliances that are supposed to convey? I don't generally walk into houses while my clients are moving so I wouldn't know an appliance was taken until the buyer agent told me. Sometimes I do a dual walk through with the buyer agent, but not very often.
Most of your examples are things the selling agent wouldn't likely know. Requirements also vary by state and especially depending on specifics.
Damage after the offer? You have an inspection clause. Did you mean to write after inspection? Do you have a walkthrough clause? What kind of damage and how would the selling agent know? Specifics are important. Scuff from moving furniture vs a roof collapse are going to net very different situations.
Anything listed as age, size etc is subject to verification by you and your inspector during the due diligence period. Caveat Emptor. Buyer has immense power once the contract is signed and within their due diligence period. As such you have immense responsibility to verify and ensure your purchase meets your requirements.
Failure to disclose a major, hidden item can cause recourse but you must prove the seller knew about it and the extent. That can be difficult in reality.
How can a selling agent know the seller took appliances?
Let's say the buyer told his own agent that the seller had taken the stove. (In this fictitious example, this is a state where buyer does not take possession immediately after closing. Stove was there the morning of closing, but it is gone the next day when keys are given to new buyer). Buyer's agent tells seller's agent about the missing stove. Seller's agent knows the stove was written in the contract as to stay. Does seller's agent have any obligation to inform the seller of the breach of contract? Any further obligation? Any "real estate dispute" agency the buyer can turn to? If not, is there any recourse for the buyer, other than obtaining an attorney?
Let's say the buyer told his own agent that the seller had taken the stove. (In this fictitious example, this is a state where buyer does not take possession immediately after closing. Stove was there the morning of closing, but it is gone the next day when keys are given to new buyer). Buyer's agent tells seller's agent about the missing stove. Seller's agent knows the stove was written in the contract as to stay. Does seller's agent have any obligation to inform the seller of the breach of contract? Any further obligation? Any "real estate dispute" agency the buyer can turn to? If not, is there any recourse for the buyer, other than obtaining an attorney?
It is a contract dispute issue. Attorney. Court.
I guess you could try small claims court and perhaps avoid an attorney, but the agents can only push and grunt about so much, and it becomes a legal issue.
Let's say the buyer told his own agent that the seller had taken the stove. (In this fictitious example, this is a state where buyer does not take possession immediately after closing. Stove was there the morning of closing, but it is gone the next day when keys are given to new buyer). Buyer's agent tells seller's agent about the missing stove. Seller's agent knows the stove was written in the contract as to stay. Does seller's agent have any obligation to inform the seller of the breach of contract? Any further obligation? Any "real estate dispute" agency the buyer can turn to? If not, is there any recourse for the buyer, other than obtaining an attorney?
I just read your hole in the wall thread.
You need to read your contract. Find the section that outlines dispute resolution and READ what you agreed to. In Oregon, buyers and sellers agree to go to small claims court, if the damages qualify, which goes to $10,000 here which is most real estate disputes. So your $1300 hole damage thing would be handled in small claims court here. Out here, I'd be stunned if you lost in small claims based on what you wrote in the other thread. I can't speak for your state though because you need to see what kind of protections your contract gives you, as the buyer.
You need to read your contract. Find the section that outlines dispute resolution and READ what you agreed to. In Oregon, buyers and sellers agree to go to small claims court, if the damages qualify, which goes to $10,000 here which is most real estate disputes. So your $1300 hole damage thing would be handled in small claims court here. Out here, I'd be stunned if you lost in small claims based on what you wrote in the other thread. I can't speak for your state though because you need to see what kind of protections your contract gives you, as the buyer.
Yes, I started this thread somewhat because of our "holes in the wall" issue. But it goes beyond that. We've had issues before (some major, som minor), and it just got me curious as to what the selling agent's legal or ethical obligations are. I started a new thread because I didn't want to just discuss the nitty gritty details of our current situation, but more general terms.
Most issues can be fixed with a good inspection and walkthrough immediately before closing.
If you're having lots of issues all the time I'd argue either your expectations are to high or you need better contracts at the time of offer.
Nice that you are blaming me when sellers don't honor the contract we signed. Thanks.
My expectations are not too high.
I wouldn't know how to get "a better contract."
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Thanks.
