Arizona real estate salespersons and brokers must comply with regulations administered by the Arizona Department of Real Estate (ADRE) when assisting clients with the purchase or sale of real property. If a client is not satisfied with a real estate salesperson or broker’s performance, a dispute may arise that requires the help of a real estate broker defense attorney.
Duties Owed to a Real Estate Broker’s Client
Real estate brokers and salespersons owe a fiduciary duty to their clients. This is a high standard, which requires promoting and protecting the client’s best interests.
The real estate broker also owes a more limited duty to the other party in the transaction. The broker must disclose to the opposing party any information that could materially impact the buyer’s or seller’s ability to perform the transaction. The broker must also disclose any known material defects in the property, or the existence of any liens or encumbrances on the property.
Balancing the duties to the client and the opposing party can be a difficult task. Sometimes, a broker may be charged with disclosing information to the other party that could be detrimental to their client. Doing so will obviously make the client upset, but a failure to disclose the required information is also a violation of duties owed to the other parties in the transaction.
In difficult situations such as this, it’s a good idea to consult with a real estate attorney experienced in defending brokers and salespersons to make sure you are fulfilling your legal duties.
Other Disputes Involving Real Estate Brokers
Real estate brokers can be involved in many other disputes that may require the help of a real estate attorney. For example, there may be commission disputes, where the client claims they do not have to pay the broker’s commission because the broker did not actually cause the sale. In these situations, the broker could have tens of thousands of dollars or more at stake, so consulting with a real estate attorney is wise.
Brokers may face many other issues when representing clients, such as failure to disclose a potential conflict of interest or when the purchaser or seller is a member of the broker’s family. In any situation where your real estate license is at risk, be sure to consult with a real estate broker defense attorney to protect your livelihood.
Chernoff Law handles real estate litigation matters throughout Arizona, including real estate broker defense. Contact us by calling 480-719-7307 to discuss any real estate issues you encounter.