Listing broker has obligation not only to sellers

“honestly, fairly and in good faith”

It is pretty obvious that real estate agents and brokers who list properties for sale assume significant fiduciary duties to the owners under state law.

Those duties encompass obedience, loyalty, disclosure of information, confidentiality, accountability, and reasonable care, skill and diligence.

What may be less apparent to consumers is the obligation to treat everyone else acceptably under the law.  We real estate professionals must “deal honestly, fairly and in good faith with the buyer.”

Within that phrase lie a number of duties — for example, the following:

  • No misrepresentation of fact such as by concealing defects;
  • Refusal to show the property to prospective buyers.

It doesn’t take a lot of imaginination to think how the precepts of honesty, fairness and good faith can fall by the wayside.

A broker may misstate the existence, number or quality of any purchase offers.  She may delay responding or fail to return telephone calls seeking a showing appointment.  He may play off one unacceptable offer against another in what, at bottom, is a false competition.

Nor is it unheard of for a broker hoping to collect entire commission owed to both the seller’s and buyer’s representatives by finding ways to discourage other buyers than the one whom the broker is helping to make an offer.

Acting within moral and ethical guidelines can be a challenge to many of us engaged in the sale and purchase of real estate.

But acting legally is not so hard: The law is clear.

Tomorrow: Disclosure detailed

To take your own bite out of the Big Apple, you have the option here to search all available properties privately.

Subscribe by Email

Facebook
Twitter
More...

Malcolm Carter
Licensed Associate Real Estate Broker
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022

M: 347-886-0248
F: 347-438-3201

Malcolm@ServiceYouCanTrust.com
Web site

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s