Real estate agents are given the privilege to negotiate their business deals independently with home buyers. However, some of them fail to perform by the code of ethics as their basis. As a result most real estate agents tend to commit extortion or non-disclosure of certain defects in property leading their customers to sue them.
In the world of real estate, agents are the one who are responsible for providing clients with the best options when trying to look for their dream home. Since these agents are merely contractual, the broker agency they work for provide them with the independence of negotiating with home buyers as they see fit.
However, with this given independence, real estate agents deflect from the code of ethics that they are bound to abide from. This leads them to being sued by their colleagues or clients who seek their help in the industry.
Last August 8, a reputable real estate agent was sued by two of his competitors with the charge of extortion, reported Miami Herald. Allegedly, Kevin Tomlinson, a Miami Beach real estate agent, tried to blackmail other real estate agents in order for him to land a huge client.
In doing so, the competitors sued him that led to his reputation being tainted as a real estate agent. In the real estate business, trust and confidence is a character that agents wish to garner from their clients. However, when their reputation is clouded due to illegal actions, they lose their clients and even their relationship with their broker agency.
In other news, real estate agents are also sued based on what they disclose upon their clients, especially when said clients have chosen a home that appeared to be in perfect shape.
According to Louisiana Record, a real estate agent was sued for breach of contract, failing to properly disclose a particular property's defects, a breach of warranty and fraudulent misrepresentation.
These charges tend to be sued upon a real estate agent who, when engaging the client and convincing them to buy a certain property, fails to be honest with the defects that could garner a buyer extra expenses. In doing so, the agent has not only tainted his reputation as someone who is trustworthy in the industry, he also put himself in a situation wherein he might not be able to practice his profession in the future.
Therefore, if you're a real estate agent who wish to gain more clients and wish to excel in the world of real estate, make sure to abide by the code of ethics and defer from getting sued by your colleagues and clients in the market.
