Articles on “Disclosure”

CALIFORNIA SUPREME COURT RULES THAT DUAL AGENCY CREATES DOUBLE FIDUCIARY DUTY FOR AGENTS

Monday, November 28th, 2016

The California Supreme Court ruled that both sales agents working for the same broker in a dual agency transaction owe fiduciary duties to both the buyer and seller. This means the listing agent in a dual agency transaction has a fiduciary responsibility to inform and advise the buyer, someone whom the listing agent has probably never met and with whom he/she traditionally does not communicate directly. Conversely, the buyer’s agent has the same fiduciary responsibility to inform and advise the seller.

Read the full article »

A LISTING AGENT IS NOT LIABLE TO THE BUYER FOR MAKING A STATEMENT OF FACT REGARDING THE PROPERTY THAT IS ACCURATE BUT OUTDATED. THE SELLING AGENT IS LIABLE FOR FAILING TO EXPLAIN IT.

Monday, April 21st, 2014

The buyer of an undeveloped parcel of real estate sued the seller, listing agent and listing broker when he discovered that the property he purchased was unbuildable even though the MLS description written by the listing agent stated a geologist report concluded it was buildable.  The listing agent failed to disclose in the MLS that the geologist report was 25 years old and outdated.  The court ruled that the seller and listing agent were not liable because the MLS statement was factually accurate.  However the selling agent was found liable because he failed to review the report and failed to inform his buyer the report was unreliable.Saffie v. Schmeling (2014) 224 Cal.App.4th 563

Read the full article »

NEW LAWS AFFECTING REAL ESTATE IN 2012

Thursday, January 12th, 2012

The California legislature enacted the following new laws for 2012 that are relevant to real estate.

Read the full article »

DRE TAKES ACTION AGAINST BROKER FOUND LIABLE FOR FRAUD IN MISREPRESENTING THE SQUARE FOOTAGE OF A RESIDENCE

Tuesday, July 12th, 2011

Where a civil judgment for fraud based on misrepresentation of the square footage of a residence was entered in favor of a buyer against his real estate broker the broker’s real estate license may not be suspended by the Department of Real Estate unless the judgment is based on “clear and convincing” proof of fraud. Grubb Company Inc. v. Department of Real Estate 194 CA 4th 1494 (2011).

Read the full article »

MARS COMPLIANCE FOR REAL ESTATE AGENTS

Tuesday, March 29th, 2011

Any real estate agent who negotiates short sales with lenders or promotes their services as a way to help consumers avoid foreclosure is covered by the new Federal Mortgage Assistance Relief Services (“MARS”) rules, and must comply with all requirements regarding mandatory disclosures, misrepresentations and the prohibition against collection of advance fees.  [16 CFR 322 et. seq.]

Read the full article »

BROKER HAS FIDUCIARY DUTY TO DISCLOSE TO THEIR CLIENT, MATERIAL INFORMATION KNOWN TO ANY OF THE BROKER’S AGENTS

Sunday, July 18th, 2010

The California Court of Appeal for the Second District on November 1, 2007 ruled that a real estate broker has a fiduciary duty to disclose material information to its client, regardless of which salesperson in the broker’s office has the information.  Michel v. Palo Verdes Network Group 67 Cal.Rptr. 3d 797 (2007).

Read the full article »

SELLER’S FAILURE TO DELIVER TRANSFER DISCLOSURE STATEMENT TO BUYER GIVES BUYER THE RIGHT TO CANCEL THE PURCHASE EVEN THOUGH BUYER INTENDS TO DEMOLISH THE BUILDING

Monday, July 14th, 2003

The California Court of Appeal in the 4th District ruled on July 7, 2003 that a seller’s failure to deliver a TDS disclosure statement gave the buyer the legal right to cancel the purchase even though buyer was unconcerned with the condition of the residence because buyer was purchasing the property as-is, and intended to demolish the residence and replace it with a commercial building. Realmuto v. Gagnard 110 CA4th 193 (2003).

Read the full article »