Misrepresentation by Real Estate Agent Seeking Advice
I purchased a home from a for sale by owner, with myself as the homebuyer and the seller navigating the process without a real estate agent. However, I had a real estate agent representing me throughout the transaction. Unfortunately, I’ve encountered several issues with the agent’s conduct that have left me feeling misled and frustrated. Firstly, the agent failed to review the inspection report or the appraisal with me, and was absent during all inspections. Additionally, I was never informed of my right to conduct a final walk-through before closing. Despite repeated requests, the agent has not provided certain essential documents or receipts, such as proof that the home was exterminated by the seller. Furthermore, the agent neglected to inform me that I could have negotiated for the seller to cover part of their commission. It’s been over two years, and I’m still awaiting these documents. Had the agent fulfilled their duties properly, I may not have proceeded with the purchase. Moreover, I’ve noticed a concerning pattern where the agent consistently failed to secure homes we bid on previously, despite my trust in her expertise. I also provided several cashiers checks totaling $4000, which the agent claimed were for good faith but have not been returned. I’m seeking advice on whether this constitutes misrepresentation by the real estate agent and what steps I can take to address these issues. Any insights or recommendations would be greatly appreciated. Thank you.”
@Kimberly Paul
A lot to unravel here. What did your agreeement with the agent say?
Typically an agent is not required to go over the appraisal, view the inspection report or even attend your inspection. They are there to facilitate the purchase - now some are better than others and will spot certain things for you to review further
But two years after the fact not sure what recourse you have
Regarding giving them money, not sure what that is about so tough to respond to that except again what was in the agreement you signed
Long story short, move on.
- Chris Seveney
If you have your buyer-broker agreement and it was a full-service agreement, read through it and if they didn't perform, then contact your state's real estate board to see if you can still file a complaint, as there may be a time limit. The buyer-broker contract should specify the agent's duties of representing you, especially how they handle your funds, which seems the most serious thing you mentioned. If you did not win a bid, they should have simply returned the cashier's check you provided them or given you a refund if it had already been deposited in their escrow account, unless there was an agreement between you for them to hold it for the next offer. If you did win the bid and then defaulted, then your agent should have provided you with documentation where it specifies who received your earnest money deposit and why you were not entitled to it back, usually with all parties' signatures required. While each state has different rules for earnest money deposits, they are all very strict about them. There are huge repercussions for real estate agents/brokers who mishandle client funds. If that happened to you, the real estate board should be made aware of it asap. For inspections, walk-through etc., as a listing agent, I've seen several buyers' agents in the last few years not show up for their client's inspection or Walk Through -- very annoying, sometimes giving me short or no notice, very problematic if there's no other arrangement for entry. Some lenders won't share appraisals with anyone but their client -- just had this happen to me, so my buyer can ask me questions, but if the lender won't discuss it with me, then I am very limited in ability to assist.
