The seller of a home is generally required to provide an accurate Seller’s Disclosure Notice disclosing defects. Likewise, real estate agents and brokers have a duty to disclose property defects. Many agents carry a form of “malpractice” insurance to cover claims against them for negligence. However, as in other situations involving insurance companies, the person wronged often needs an aggressive lawyer to pursue litigation and successfully collect a fair amount of damages.
Even if an agent does not have errors and omissions coverage, we may be able to help you obtain compensation for real estate fraud. The Texas Real Estate Commission maintains a recovery funds for satisfying judgments when consumers are harmed by the negligence of licensed brokers, agents or inspectors.
The duty of licensed agents can be summarized as a requirement to disclose any condition material to the transaction — that is, anything that impacts property value or might influence the purchaser’s decision. However, brokers and agents make their money by selling property. They may “coach” a seller about what to reveal in a disclosure notice or even attempt to assign liability to that seller with specific language in notices given to the buyer. Also, they may close their eyes when they know their client, the seller, improperly discloses defects or fails to disclose defects at all.
In some cases, action for negligence may be appropriate against an inspector who should have either identified a potentially serious condition or recommended that an engineer be hired for further investigation.
If you believe you have been victimized by real estate fraud in North Texas, please contact us for a free initial consultation.