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Part Two

risk. When a client suffers a loss as a result of the agent’s actions, that client will usually feel a need to be compensated for that loss. However, lawsuits are expensive, and many who have suffered losses do not file complaints. Historically, the vast majority of lawsuits filed have involved seller’s brokers. There are so many ways they can misrepresent a property and obligate a seller for the broker’s misrepresentations. However, there are very few instances when a buyer’s broker can misrepresent a buyer such that the buyer is put at risk. Nevertheless, even when retaining a Realtor ® to represent you as your buyer’s broker, you need to be aware there may be some vicarious liability. It will behoove you to ensure your broker is experienced, knowledgeable, professional, and willing and able to work for you.

What the Heck Is a Fiduciary? Fiduciary is defined by the Random House Dictionary as “a person to whom property is entrusted for the benefit of another.” So how does this fit into a book on real estate? In the past, Realtors® were brokers who provided “fiduciary duties” to clients. They were entrusted with handling a real estate transaction with a level of care as though the property were their own. However, it seemed most real estate brokers never really understood what the word meant in terms of daily professional conduct. The industry position was that a broker represented the seller unless there was a written contract to the contrary. The buyers believed they were working with a broker who was “their broker” and owed them all the normal duties of loyalty and confidentiality. As an industry perception, brokers felt that when buyers said they were betrayed it was because the buyers were complainers. The fact was that real estate brokers represented the seller at all times and generally treated the situation with this thought in mind: “Let’s quit 42

Profile for Linda DeVlieg Real Estate

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

Profile for lindadev