Real estate agents are professionals who are responsible for many different issues related to the purchase and sale of real estate. These individuals are licensed to perform real estate transactions in their state.
Real estate agents represent sellers and buyers or real estate, or property that may include land or buildings. These professionals have training and education in all issues related to real estate transactions, including the regulations that govern property sales. They are also required to pass a state board exam to obtain their license.
Real estate agents are responsible for many different tasks, which can vary depending on their credentials, licensing, and education. Specific examples of things that real estate agents are responsible for include, but are not limited to:
- Handling standard client forms
- Showing properties to potential buyers
- Guiding clients through tours of the property
- Drafting and preparing offers and other related paperwork
- Negotiating sale prices between sellers and clients
- Closing a deal
- Providing adequate customer service if a client has an issue
- Answering essential questions that clients may have, such as describing the home purchasing or selling process
- Reviewing real estate contracts, such as lease agreements, purchase agreements, and rental contracts
This is not an exhaustive list of what real estate agents are responsible for. The term real estate agent may be used interchangeably with brokers or salespeople.
Brokers, however, might work alone due to the more rigorous state board licensing required. In general, a real estate agent is required to work with a broker.
What Are Real Estate Agents Not Authorized To Do in New York?
Even though real estate agents do have numerous responsibilities, there are certain things that they are not permitted to do, such as:
- Providing legal advice
- Giving tax advice
- Violating the Fair Housing Act by doing things such as disclosing certain details about a community that the Act protects
For more information on whether or not a real estate agent is engaging in unauthorized conduct, it is important to have a legal consultation with a New York lawyer.
What Are Misrepresentations and Failures To Disclose?
A misrepresentation occurs when a real estate professional misstates a material feature of a property. These often occur along with failures to disclose. Failures to disclose arise when a real estate professional fails to disclose or address a material feature of the property completely.
A misrepresentation will often involve the foundation or other crucial structural features of the property, termite or pest issues, and property boundaries. Common examples of undisclosed issues include title issues, property easements, and environmental concerns.
What Are Specific Examples of Real Estate Agent Misrepresentation in New York?
Specific examples of real estate agent misrepresentations in New York can include, but are not limited to:
- Inflating the property value
- Making false statements about the features of the property
- Concealing defects in the property
- Failing to disclose if there is relevant information, such as a pending zoning change
What Are the Most Common Lawsuits Against Real Estate Agents?
A real estate agent may be sued for many different issues because of the nature of their work. One common lawsuit is breach of fiduciary duty.
A fiduciary is someone who is trusted with acting on behalf of another individual and to make decisions that are in their best interests. Real estate agents typically work independently of their clients by negotiating with other parties, reviewing contracts, and other duties.
Common examples of breaches of fiduciary duty by real estate agents include:
- Earning secret profits or fees that are not shared with the client
- Not notifying a seller of other offers on the table after one offer has been accepted
- Declining or accepting an offer without consent from the client
Standard types of claims against real estate agents include failure to disclose a property defect, negligence, or failing to keep an individual’s personal data safe. In addition to these, a real estate agent can be sued for lying.
It is important to be aware that suing for a misrepresentation or lie will not be as easy as it may sound. The type and nature of the misrepresentation or lie will have a significant impact on the lawsuit.
If the real estate agent’s lie was overt, a lawsuit may be successful. If, however, the lie was about something the purchaser should have been aware of, they may not have a successful case.
Find My Lawyer Now!
How To Sue a Real Estate Agent for Misrepresentation in New York
There are certain steps that an individual should take if they are suing a realtor for misrepresentation in New York. An individual can also take some steps before they file a lawsuit to attempt to resolve their issue, such as sending a demand letter or filing a complaint against the agent with the appropriate state agency or National Association of Realtors.
Sending a demand letter
A demand letter can explain the issue, how the individual would like to resolve it, and the deadline for the resolution. These letters can be effective because they will notify the agent that the individual is willing to escalate the issue if it is not resolved.
Filing a complaint against the real estate agent
The majority of states have real estate commissions or licensing agencies where individuals can file complaints against real estate agents. If a professional is a Realtor, they are registered with the National Association of Realtors, and an individual can file a complaint with that association.
Suing the real estate agent in small claims court
All states have different requirements for small claims court amounts. If an individual’s damages amount falls at or below the state requirements, they might be able to resolve their issue in this court.
Important evidence a plaintiff may need in small claims courts can include:
- The sale contract
- Photographs of property issues or defects
- Pictures of the property itself
- Information from witnesses
- Any other signed agreements
- Communication with the real estate agent or office
Filing a lawsuit in civil court
An individual can file a lawsuit in civil court if they cannot resolve their issue using one of the options discussed above. It is important to consult with a lawyer who can provide advice about this type of claim and the possible outcomes.
At any time during the process, the parties can settle their issue outside of the courtroom. An individual should have their lawyer present at any settlement negotiations to make sure that they are offered a fair settlement amount.
If their case is not settled, it will go to trial where the judge or jury will make a determination based on the evidence that is presented in court.
What Remedies Are Available if You Sue a Real Estate Agent?
Typically, when a real estate agent is sued, the court may award monetary damages to the plaintiff, which may include:
- Compensatory damages
- These are associated with a breach of contract or misrepresentation. Additionally,
- Punitive damages
- Remedies in equity
- This is a non-monetary type of remedy
- It may require the agent to cancel a contract they breached
- Other types of damages
- This may include emotional distress or other types of damages
It is important to note that an individual is required to mitigate their damages. This means that they must not cause themselves additional harm and then attempt to recover that from the lawsuit.
Do I Need an Attorney To Sue a Real Estate Agent in New York?
If you think that your New York real estate agent has wronged you in some way, it is important to consult with a New York real estate lawyer. Your real estate lawyer can help you understand the specific issues in your case, determine whether you have a legal claim, and give you advice on how to proceed.
You can use LegalMatch’s free and confidential attorney matching services to find a New York real estate attorney who can help you determine whether you need to file a lawsuit against a real estate agent and represent you in court if you do. It only takes about 15 minutes for you to submit your real estate issue or concern on the LegalMatch website and be connected to lawyers in your area who can help.
