I hope the likes of Greg Swann, Kendra Todd, Connie De Groot, and all the other cheerleader realtors who gave terrible advice and screwed homedebtors for a commission are a bit nervous tonight.
Here come the lawyers HP'ers. But what took so long?
The 1.3 million six-percenters had a fiduciary responsibility to their suckers (oops, I mean "clients"). Spouting off the NAR's anti-bubble talking points or giving 21 reasons to buy including "year round golf" was not fulfilling a fiduciary responsibility - it was obscuring and spinning so that the sucker would buy the damn house and they could earn their damn commission.
Unfortunately, you can't sue people for just being stupid, and I think most realtors were just being stupid (since there are no job qualifications after all and any stupid person can be one). But when buyers and lawyers can prove a realtor hid facts (like comps or market conditions) or took under-the-table bribes (like the bonus commissions we all know the builders were offering) or kickbacks (from the corrupt appraisers and mortgage brokers) then hell yes, the lawyers are gonna kill 'em. And rightly so.
Feeling Misled on Home Price, Buyers Are Suing Their Agent
Marty Ummel feels she paid too much for her house. So do millions of other people who bought at the peak of the housing boom. What makes Ms. Ummel different is that she is suing her agent, saying it was all his fault.
Ms. Ummel claims that the agent hid the information that similar homes in the neighborhood were selling for less because he feared she would back out and he would lose his $30,000 commission.
Real estate lawyers and brokers say the case, which goes to trial in North County Superior Court on Monday, is likely to be the first of many in which regretful or resentful buyers seek redress from the agents who found them a home and arranged its purchase.
“Agents have a lot of fiduciary duties, but they don’t make money unless they close the sale,” said Joel Ruben, a real estate lawyer in Manhattan Beach, Calif. “In an inflated market, there are built-in temptations to cut corners.”