A real estate broker (sometimes referred to as a real estate agent) facilitates the sale or rental of a property and typically earns a commission for those real estate transaction duties. Often, such transactions are fairly straightforward.
Sometimes, brokerage disputes arise. Brokerage disputes cover a wide range. Some of the most common ones involve disputes during or after the property transaction process. Any number of real estate disputes may arise, including:
- Breach of broker contract - This type of dispute can occur for many different reasons, including someone (often a real estate broker or agent) failing to honor a real estate contract for the purchase, sale, or rental of a property. Broker commission disputes are also common. In certain situations, the broker may pursue a real estate sale or lease commission even when the transaction doesn't close, believing it has fulfilled its contractual obligations.
- Buyer complaints - Buyers often have serious legal complaints involving the seller, real estate agents, or others who fail to honor legal contracts involving real estate transactions.
- Property defects - Brokers who facilitate the sale or rental of a property built with defective materials or faulty construction methods need to be held accountable for their actions.
- Escrow agent or title agent conflict of interest - Legal disputes involving the escrow agent (person who holds a property in trust for third parties during a real estate transaction) or title agent (person responsible for preparing a legal title of ownership for a property) can be complicated and often require the assistance of an attorney.
- Broker negligence - Real estate brokers have a legal obligation to act in the best interest of the buyer or seller and accurately disclose any important legal information. This includes disputes involving broker commissions. Otherwise, they could be held legally responsible if the buyers or sellers believe the broker was negligent and breached fiduciary duties.