What happens when a real estate agent gets sued?

In the majority of real estate related lawsuits, a court will award monetary damages to a plaintiff who has been wronged by a real estate agent. These awards could include: Compensatory damages associated with a breach of contract or misrepresentation.

How do Realtors get sued?

Real estate agents are frequent targets for lawsuits. The lawsuit alleges not just negligence, but also alleges that the seller and the agent conspired to keep defects hidden to facilitate the sale at a higher price and earn a higher commission. The buyer may also file a disciplinary grievance against the agent.

What are Realtors liable for?

Real estate agents owe contractual and fiduciary duties to their clients. If agents breach their duties, through negligence or other breach, they can be liable for damages. In certain circumstances, real estate agents can also be liable to the opposing party in a real estate transaction.

Are real estate agents at risk of being sued?

There are no guarantees to completely eliminate the risk of being sued – other than not practicing as a real estate agent. To be frank, lawsuits and grievances are a professional hazard. However, employing a few simple precautions can minimize that hazard.

What are the most common lawsuits brought against Real Estate Agents?

One of the most common lawsuits brought against real estate agents is for breach of duty. Real estate agents know they must always act in the best interest of the client, as clients place a special trust in real estate agents for their expertise.

Can a real estate agent be sued for fraud and conspiracy?

Nevertheless, a public lawsuit alleging fraud and conspiracy by the agent is unsettling at best for the accused agent. Reputation is extremely important in a referral business like real estate brokerage. In addition, defending lawsuits is expensive and time consuming for the agent.

Can a real estate agent be held liable for a lawsuit?

Let Us Help You ➤ Real estate agents often face lawsuits when they are negligent in duties or responsible for injury, and this could occur if the agent is the person held accountable for disclosing property defects to the buyer.