{"id":3632,"date":"2025-01-21T02:00:16","date_gmt":"2025-01-21T10:00:16","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=3632"},"modified":"2025-01-22T00:32:20","modified_gmt":"2025-01-22T08:32:20","slug":"realtor-in-breach-of-contract","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/realtor-in-breach-of-contract\/","title":{"rendered":"Here’s What to Do When a Realtor is in Breach of Contract"},"content":{"rendered":"

88% of recent home buyers said they would use their agent again<\/a> \u2014 that\u2019s the good news. But what about the other 12% of clients who come away unsatisfied or worse? When your real estate agent breaches contract, it\u2019s a nightmare. A real estate agent\u2019s failure to do their job can cost you time, money, and personal damages.<\/p>\n

A breach in contract could be the difference between selling your house in a month and selling it in four. You could lose $40,000 on the sale of your home or pay a 3% sales commission for early termination. Your agent\u2019s \u201coopsy\u201d could even mean the divulgence of your ugly divorce.<\/p>\n

When your real estate agent breaches contract, it causes real problems with serious consequences, but luckily there\u2019s a solution. Open communication and legal preparation are key when dealing with your agent\u2019s breach in contract. We\u2019ll show you why.<\/p>\n

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\n \"homelight\n <\/div>\n \n

Connect with a Top Agent<\/h3>\n

Whether buying or selling a hope, working with a top agent that specializing in your particular type of real estate can be hugely beneficial. <\/p>\n \n

\n Find Agent<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n
<\/div><\/p>\n

What\u2019s in the real estate agent contract, anyway?<\/h2>\n

When you enter into a contract with your listing agent, you are signing (yes, physically or electronically signing) a document that allows your real estate agent of choice to act as your agent in the sale of your property.<\/a><\/p>\n

This contract gives your agent the exclusive right to market and sell your home.<\/p>\n

In addition to the specific duties the real estate agent has agreed to perform (like online marketing<\/a>, showing the house<\/a>, negotiating the best offer<\/a>, etc.), they enter into a set of legal obligations known as \u201cfiduciary duties<\/a>.\u201d<\/p>\n

These fiduciary duties are set in place to ensure that your real estate agent protects your best interest. For example, if you were fortunate enough to have multiple offers well above the marketed price for your home, it is the agent\u2019s responsibility to make sure you get the highest possible offer for your house. Your agent is working for you to make the process of listing, negotiating for, and selling your home go as smoothly as possible.<\/p>\n

The fiduciary duties in a real estate contract agreement include:<\/p>\n

Obedience:<\/strong><\/em>
\nYour agent has entered into a binding contract that requires them to do what you ask of them as long as what you want does not violate any law.<\/p>\n

Loyalty:<\/strong><\/em>
\nThe agent you employ must act solely to further your best interest as the seller. There cannot be any conflict of interest involving family or personal gain when they are selling a house for you.<\/p>\n

Disclosure:<\/strong><\/em>
\nYour real estate agent must be open and honest about all of the information and policies regarding their real estate firm, the offers they receive from potential buyers, and any other pertinent information regarding the sale of your house. For example, an agent must disclose if they have a relationship with or any personal stake in the potential buyer<\/a>.<\/p>\n

Confidentiality:<\/strong><\/em>
\nDuring and after the sale of your home, your agent must not share any of your personal information or knowledge about you.<\/p>\n

Accounting:<\/strong><\/em>
\nWho wants their money? After all of that hard work to make your home sell-worthy, you do. Your real estate agent must account for all of the property and money used in the transaction that belongs to you.<\/p>\n

Reasonable Care and Diligence:<\/em><\/strong>
\nWhen you hire an agent to sell your house, they are obligated to do their job \u2014 and do their job correctly. If your agent is not competent enough to do any part of their job during the transaction, they are required to let you know so that you do not suffer any monetary or legal damages.<\/p>\n

In addition to the fiduciary duties, there are also contractual specifics<\/a> such as listing duties, the duration of your relationship with your real estate agent, and parameters of their commission and administration fees that you both must adhere to.<\/p>\n","protected":false},"excerpt":{"rendered":"

Find out how to handle disputes when a realtor is in breach of contract.<\/p>\n","protected":false},"author":58,"featured_media":52832,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[321,238],"tags":[491,426,425,275],"class_list":["post-3632","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-attract-buyers","category-working-with-agents","tag-basics","tag-breach-of-contract","tag-realtor-contracts","tag-realtor-fees"],"acf":[],"yoast_head":"\nWhat to Do When a Realtor is in Breach of Contract<\/title>\n<meta name=\"description\" content=\"Find out how to handle disputes when a realtor is in breach of contract.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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