Breach of Contract in the Real Estate Industry
Real estate agents are hired by homeowners to sell their homes. Selling a home is not an easy task. There are inspections involved, as well as mountains of paperwork. Each step of the process requires the real estate broker to act in an ethical manner. If they are dishonest to the home seller or the buyer, they could lose their license.
Many incidents of breach of contract come about in the purchase agreement. This agreement includes many elements, such as the purchase price, the loan amount, the down payment, the address, the closing date, what is included in or excluded from the sale, and responsibility for certain expenses.
A real estate agent could potentially lie about any of these aspects or fail to do their job in some way. A breach of contract is a serious issue that jeopardize the sale of a home, costing a seller time, money and other damages. Here are some common situations in which a real estate agent can breach a contract.
Failure to Properly Market Home
A real estate agent’s ability to market a home is a powerful tool. Without this, potential buyers will have no idea that their home is available and they could lose out on a sale. If an agent fails to show a home to a potential buyer or is lazy about spreading the word about a home for sale, they could be sued for breach of contract. Don’t let that happen to you. Be aggressive and do what you can to sell the home. That sale is money in your pocket.
Disclosure of Personal Information
The potential buyer should not know anything about the homeowner’s personal situation. Their only concern should be the characteristics of the home. Therefore, as an agent, you should not disclose anything about the sellers, such as their personal information and why they are selling the house. People sell for many reasons, such as job offers, downsizing, divorces and deaths. This is a breach of trust that can lead to damages.
Not Getting the Highest Offer Possible
Real estate agents need to be aggressive in negotiating the highest price possible for the property. If you can get more than the asking price, then you should certainly do so, as long as the transaction is ethical. You need to maximize the profit through negotiation and clear communication with the homeowners. You should let them know of any and all offers on the home. Failure to do so is a breach of contract. Agents should retain all offers and counter offers so that in the event there is any issue in the future the agent will be able to document the negotiations.
Keep Your License With Help From a Tampa Real Estate Broker License Lawyer
A lot goes in a real estate transaction and it is easy to engage in unethical acts or breach a contract. Make sure your license and livelihood are protected.
Contact Tampa real estate broker license lawyer David P. Rankin to protect your career. He has been involved in several hundred license discipline proceedings before the Florida Real Estate Commission and was the attorney for the Greater Tampa Realtors for 18 years. Schedule a consultation by calling (813) 968-6633 or filling out the online form.