Some examples of lawsuits made against real estate agents are:
- Breach of contract – The real estate agent and the buyer/seller enter a contract that describes the terms of the realtor’s representation. If the real estate agent breaches the contract, then the buyer/seller can sue the real estate agent for breach of contract.
- Breach of fiduciary duty – Real estate agents generally have a fiduciary duty to the buyer or seller, unless they are representing the parties as a transaction broker. If the real estate agent has a fiduciary duty and acts contrary to the best interests of their client, then the real estate agent may be liable for breach of fiduciary duty.
- Unauthorized practice of law – A real estate agent cannot provide legal advice or draft legal documents. Doing so will open the real estate agent up to liability.
- Failure to disclose property defects – If the real estate agent is aware of a material defect in the property that is not readily observable to the buyer, then the real estate agent has a duty to disclose the defect to the buyer.
- Negligence – Real estate agents have a duty of care when interacting with clients. The real estate agent can be liable for negligence if the real estate agent provides false information, leaves out important information or documents, misses deadlines etc.
- Personal injury – Real estate agents could be liable for injuries that occur during an open house or when escorting a client through a property if there are hazardous conditions on the property that the real estate agent should have known about.
- Fraud – Real estate agents that intentionally make a false statement concerning a material fact or omit material facts about a property could be liable for fraud. Material facts are facts that a reasonable person would have found relevant in deciding whether to purchase or sell a property.