Real Estate Agents: Don’t Be Sued for Misrepresentation

Buying a home—and especially if it is their first—can be one of the most exciting purchases available to consumers in the US today. Not only that, it may be the biggest investments they ever make. From seeking out the best neighborhoods to floorplans that will work for them and driving past their dream homes for months or maybe even years, potential homeowners usually take the business of looking for (and eventually buying) a new home very seriously.

And while they may even be friends with their real estate agent and enjoy a sense of camaraderie, most customers are seeking one main feature from such professionals: trust. This is critical on every level from information regarding neighborhoods, schools, and zoning to understanding all the ins and outs of homes being looked at, offers being made, contract details, and more. If you are a real estate agent, then you understand all that a home represents to your clients: financial investment, comfort, security, and a safe place to both raise a family and enjoy time with them. If you’ve sold a home without disclosing a key element, such an issue could come back to haunt you later in the form of a misrepresentation lawsuit.

For the real estate agent in a misrepresentation case, blame is usually doled out in several different ways, depending on involvement. If you are being sued, it may be that you were completely innocent regarding the issue or dispute at hand—or, the plaintiff may assert that you were careless and negligent in not disclosing something about the real estate. Last, it could be that they are accusing you of fraud overall, as the clients or other parties felt they were deliberately led astray.

Sellers are required to offer full disclosure on nearly everything about a property—but when they knowingly do not, you may find yourself pulled into a major legal battle. Construction defects and structural problems in a home are often at the root of such lawsuits, especially when they crop up months later when a roof springs a leak, defective plumbing pipes break, electrical systems go bad all around, or HVAC mechanics shut down and cause discomfort to everyone in the household. A misrepresentation lawsuit could also result over boundary or zoning problems, disputes over easements, environmental issues, titles, and more.

If you have a question about a current real estate project or real estate litigation, please call Shane Coons now at 949-333-0900 or feel free to email us at Shane.Coons@seclawoffices.com.

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Real Estate Agents: Don’t Be Sued for Misrepresentation

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