# Lawsuit Concerning Buyer's Broker



## Ken Scharabok (May 11, 2002)

http://realestate.aol.com/article/_a/feeling-misled-on-home-price-buyers-sue/20080122111209990001


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## Jim S. (Apr 22, 2004)

I cover real estate stories for a living. The ethical representational duties of buyer's and seller's agents are codified in each state. Unfortunately, in my view, both buyer's agents and seller's agents are compensated from the proceeds of a successful sale, and so I can see just this type of situation actually happening. The rub is PROVING that it happened in a court of law. That can be very difficult. In some states, an agent can serve as both buyer's and seller's agent, though not in the same deal, and that muddies things up even further.

I also have concerns about kickback arrangements with seller's agents, where the agent or agency recommends an appraiser, a landscaper, a contractor, etc., to home sellers in return for compensation. The same goes with home inspectors and appraisers recommended by buyer's agents. There is quite a bit of that type of activity going on nationally. It can be difficult to prove fraud or deception in such arrangements, though, since the buyer or seller is normally not privy to the agreement between service supplier and agent. In the case of an appraiser, such arrangements can be viewed as having an effect on the appraisal, though again it is difficult or impossible to prove.


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## Siryet (Jun 29, 2002)

many people will never take responsibility for their actions and decisions.

These people clearly are intelligent and if they purchased a house without seeing the appraised value then ,*they*, not the agent, are responsible.

Now, having said that, what did the mortgage company say it was worth?

On a smaller scale, if I looked at a truck and bought it then saw the same truck cheaper would I be allowed to sue the salesman? I think not.

This should be tossed a frivolous and any attorney fees incurred by the agent should be reimbursed by the buyer.


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## Pony (Jan 6, 2003)

I agree that they should have demanded to see the appraisal. Two obviously intelligent people should have smelt a rat if they could not get the information they requested AND paid for.

All arguments about the responsibilities and ethics of sellers' agents aside, the buyers in this case have only themselves to blame.

IMO, of course.

Pony!


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