Expert: liznarr - 9/19/2009

Question
We had recently listed our home with a local agent that tautes himself as the subdivision realtor.  Our home has been on the market for approx. 2 months and we have had many showings, the majority of which have come back for second showings.  My husband and I started to think it was strange that we had not gotten any offers.  Ironically, this past weekend during a yard sale we held we met a woman who commented on how beautiful she thought our home was stating she had come thru it with her sister about a month prior and that her sister had wanted to buy the home, but did not because her agent who coincidentally is also our listing agent informed her there was a contract pending on the home.  You can imagine my emotions hearing this.  We have never had a contract presented to us ever since listing the home.  This woman was also stunned to hear this news and actually phoned her sister, who later came by our home with her husband and retold us the entire story.  They came thru twice in two days and told the agent they would like to make an offer, it was then he stated the pending contracted.  She mentioned their irritation at why had he then showed them the home.  He then showed them another house down the street and sold it to them.  They have just closed on this property two weeks prior.  In your opinion, do I have a suit againts the agent since he misrepresented our property, blantantly lied and got in the way of a potential sale.  I cant imagine this is legal, forget being completely immoral and unethical.

Sincerely,
Sick to my stomach!

Answer
Hi Mary,

Wow, what a story!  I have never heard of such, never!  No wonder you are sick to your stomach.  This agent does not deserve to have a license to practice real estate.  He has breached just about every one of his fiduciary duties to you as your listing agent.

While this woman and her sister are in a talkative mood, get them to give you a written statement of all they have told you – and have the statements notarized.  Do this ASAP before they have second thoughts.

I would go straight to a reputable trial attorney, tell him/her your story, and go for the jugular vein of this agent.  His actions are reprehensible and irresponsible.  In my opinion (which carries no weight), I think you have a good case of not only misrepresentation, but FRAUD – which, by definition, is INTENTIONAL misrepresentation.  You will need to prove YOUR case, however; and that’s why I’m suggesting you get written, notarized statements from these people very quickly.

I would also create a log of events that happened:  When these people came through your house; when they were told your house was UC; when the agent showed them the other house; when the offer was written on the other house; and so on and on.  Your attorney will appreciate your detail.

In addition to legal action, I would file a formal complaint with your State Real Estate Commission and any Realtor Board this agent is a member of.  Don’t do anything, however, until you speak with an attorney, because he/she may have a preference for a certain order that these actions be done.

Good luck to you, and feel free to write again if you have additional questions.

Regards,
Elizabeth