Real Estate Agent Misrepresentation Attorneys in Los Angeles
Protecting You Against Real Estate Agents Not Acting in Your Interest
Unfortunately, a growing problem in real estate transactions involves disputes with real estate agents. Agents are licensed and have significant responsibilities to their principals, buyers, or sellers. For example, before executing a residential sales contract, the seller and the seller’s broker must deliver the statutory real estate transfer disclosure statement to the buyer, which contains a checklist to provide notice of any problems or potential problems with the property. Civil Code § § 1102.3 1102.6. Similarly, a Buyer’s broker could be liable for failing to investigate and understand the implications of a report related to the property. In other words, a Buyer’s agent has a duty of more than simply acting as a conduit of information.
Real estate agents are paid a commission based on the sale, and their primary goal is to facilitate a sale. However, an agent may omit to act in the buyer’s or seller’s best interest while trying to close the transaction.
Over the years, Gomez Law, APC’s real estate attorneys have helped their clients protect their rights against real estate agents’ conduct that falls below the standard or intentional wrongs that may maximize their benefit. Hire us to protect your rights against real estate brokers who harmed you.
What Constitutes Real Estate Agent Misrepresentation in California?
Under California law, real estate agents have numerous ethical and legal obligations when representing clients. One of their obligations involves fulfilling their fiduciary duty to handle each transaction with honesty, loyalty, and integrity, and in the best interest of their clients.
Fraudulent Misrepresentation
When a real estate agent makes a false statement to try to entice a potential buyer, their actions can be considered fraudulent misrepresentation, which is prohibited by law.
Negligent Misrepresentation
Another form of real estate fraud is negligent misrepresentation, where the agent provides a misleading statement knowing it is false, but was reasonably expected to know it was false.
Innocent Misrepresentation
Sometimes, a real estate agent may inadvertently make a false statement without the intention to deceive clients. However, even though there was no intent to deceive, their acts or omissions could still lead the client to take legal action.
Failure to Disclose
Failure to disclose occurs if a real estate agent intentionally conceals material facts or construction defects to deceive the buyer. This form of real estate fraud can be detrimental to buyers, as they often are forced to deal with unforeseen and costly repairs.
Failure to Disclose Conflicts of Interest
Real estate agents have a legal obligation to disclose if they have a personal relationship with the seller or a financial interest in the outcome of the transaction.
What are Some Examples of Real Estate Agent Misrepresentation?
Sadly, there are many forms of real estate fraud perpetrated by agents. Real estate professionals are required to comply with the legal requirements established by California law. However, many agents purposely fail to disclose information or make misleading statements.
Common examples of real estate misrepresentation include:
- Failure to disclose material facts, including property defects such as water damage, mold, or foundation issues
- Zoning or land use restrictions, including making false or misleading statements about how the property can be used for residential or commercial purposes
- Liens, easements, or encumbrances, such as not making buyers aware of restrictions or legal claims that have been made on properties that could affect their desirability with buyers
- Making false or misleading statements regarding the property’s market value or condition, and whether it is ready to move in or needs repairs
- False statements regarding the size of the home, number of bedrooms, or other characteristics of the property
- Providing false information to prospective buyers regarding the size of the property or its boundaries
Other forms of real estate fraud include agents falsifying or forging documents, making misleading statements regarding their credentials, or altering photos and videos to make a property more desirable.
What are the Legal Consequences of Misrepresentation?
If evidence is produced that proves a real estate agent misrepresented information to clients, they can face severe consequences. If the case proceeds to court, the judge will make a decision based on the evidence presented and determine the appropriate punishment.
For example, an agent may be court-ordered to pay damages to compensate the victim for financial losses incurred as a result of the misrepresentation.
Depending on the circumstances involved, the court may void the contract, and the agreement will be effectively canceled. If the court voids a contract, all parties would revert to their pre-agreement status.
If it is determined that a real estate agent intentionally defrauds a client or engages in egregious misconduct, the court may order that they pay punitive damages. Although it is not common for real estate agents to be ordered to pay punitive damages, the court may decide that they are necessary to punish the wrongdoer and warn other parties not to repeat similar behavior.
Another scenario includes the agent losing their real estate license or facing disciplinary actions. In other cases involving real estate fraud, agents may face criminal charges. If convicted of a criminal offense, an agent may be sentenced to serve jail or prison time and be required to pay fines and restitution to their victims.
If you suspect that your agent has not lived up to their legal duty to be honest in the transactions they conduct, it is best to hire an attorney immediately. At Gomez Law, APC, our real estate fraud attorneys will investigate your case and determine what legal options suit your needs.
What Legal Elements Must Be Proven in a Misrepresentation Claim?
If you believe that your agent has engaged in a fraudulent transaction, you can pursue litigation against them. However, several legal elements must be proven to win a misrepresentation claim. Due to the legal complexity involved with proving real estate fraud, the most effective way to seek justice is to hire an experienced attorney to assist you.
The legal elements that must be demonstrated in a misrepresentation claim include:
False Representation
The defendant, the agent, must have made a false or misleading statement or failed in their disclosure obligations.
Knowledge of Falsity
The defendant must have been aware that the representation was untrue or made it without regard for the truth.
Intent to Induce Reliance
The defendant provided the plaintiff with false information, intending for them to rely on it in making a real estate decision.
Justifiable Reliance
The plaintiff acted in good faith upon the false representation.
Resulting Damages
The plaintiff suffered actual damages that resulted from the false representation.
Although proving misrepresentation may seem pretty straightforward, California law has complex real estate regulations that require legal assistance. Our real estate fraud attorneys have extensive experience handling legal disputes and would be honored to assist you.
What Should I Do if I Suspect Real Estate Fraud?
If you have reason to believe that your agent has perpetrated real estate fraud, there are several appropriate steps you must take to collect evidence and build a case. These steps include:
Thorough Documentation
Gather and document critical information, including all texts, emails, and any other communication between you and the agent. Also, be sure to keep thorough records of all financial transactions between the two of you. It is also vital that you maintain an accurate log that provides details of the suspected fraud, including names, dates, and times.
Report the Fraud to Law Enforcement and Other State Agencies
After gathering solid evidence that supports your claim, you should report the suspected fraud to your local law enforcement agency. You also have the option of filing an online complaint with the California Attorney General’s Office. You can also report your case to the California Department of Real Estate (DRE), which can launch an investigation and take possible disciplinary action against the agent. Reporting your suspicions to the police and relevant state agencies will provide essential legal documentation should you decide to pursue legal action.
Hire a Real Estate Misrepresentation Lawyer
Due to the legal intricacies involved with real estate disputes, it is highly recommended that you hire a lawyer to assist you. A knowledgeable lawyer is familiar with the legal nuances involved in determining real estate fraud and what it takes to protect your rights.
Our Los Angeles County law firm has extensive experience handling cases involving real estate fraud and will vigorously advocate for your rights to ensure your voice is heard.
Why Should I Hire an Attorney to Help Me With a Real Estate Fraud Claim?
Whether your case involves commercial properties or residential real estate, fraud cases can be complicated to unravel without legal assistance. Any cases involving real estate fraud require strong supporting evidence before any other action can be taken.
When you hire a qualified attorney, they can work to gather critical evidence that substantiates your claims. After gathering evidence, your attorney will build a solid case against those who have not conducted themselves according to all applicable laws.
In addition to building a strong case, your attorney will help you understand your legal options. Although Alternative Dispute Resolution (ADR) methods such as negotiations or mediation may be an option, the guilty party must be willing to admit to the fraudulent behavior. As a result, it may be necessary to file a lawsuit to try to recover compensation for damages.
If your attorney determines a lawsuit is appropriate, they will act as your legal advocate and present compelling evidence in court. Finally, having an attorney represent you is the most effective solution to increase your chances of recovering compensation and holding the responsible parties accountable for their actions.
Contact Gomez Law, APC, Today to Schedule a Free Consultation So We Can Get Started on Your Case
Gomez Law, APC, is a law firm passionately committed to helping clients who have been victims of fraudulent transactions. Our law office has a proven reputation for helping clients win cases, allowing them to focus on what matters most in their lives. If you suspect your real estate agent has engaged in fraud, you need a lawyer who will stand up for your rights and ensure that it does not happen to others.
Contact our law firm today at 213-772-6404 to schedule a free consultation, so we can assess your legal options.