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This industry and market is constantly changing and we as Realtors need to be aware of what is working and what is simply not.

When are your duties actually over as the listing agent?

By: Sheryl Lynn Webster
Monday, February 26, 2007 6:07 PM

When are your duties actually over as the listing agent?... at the closing table…  once the buyer moves in… when your seller is satisfied… how about when the buyer has no further complaints about the property?

 

Is it the listing brokerage's responsibility to make sure the property is free and clear of all defects?  An agent with our office has a “sue happy” Buyer that wants $15,000 to repair items after closing because he says he was not told about problems that the Seller claims they had no idea about.

 

Now, I’m not talking about a Buyer we represented, I am talking about a Buyer that purchased a property from our Seller and worked with another broker.  The Seller completed every possible disclosure and the Buyer signed off on them, the Buyer had all the inspections and re-inspections completed and still feels the listing Broker and the Seller are at fault for problems found after closing.

 

This has happened to me in the past and I’ve seen it happen to many others over the years.  How far is one to go?

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Comments

Les Smith
Member Since '06

Les Smith said:

Well in the situation you point out the buyer and his agent have the responsibility of having the property inspected, if they signed off on it then they have no grounds to sue provided they also signed the property condition disclosure statement and cannot not prove the seller knowingly mislead them on it. As for when do your duties as listing agent finish...........never, you always want to keep in touch with the client and retain them and hopefully get referrals from them. After the home is sold and new buyers have moved in is usually when your official duties are done, but , as in your example, if there are problems after that point you should be there for them, if you did your job ethically and covered all your bases you have nothing to worry about, it is just a bit of a pain in the a## but your clients will love you for sticking with them. Thats my opinion.

February 26, 2007 6:25 PM
Norm Fisher
Member Since '06

Norm Fisher said:

As for when your duty ends, the promise of confidentiality which comes with agency lasts forever.

Tell the buyer to take it up with your lawyer. If you've done your proper disclosures you have nothing to worry about.  Let him sue, but promise him a good counter suit in return.

February 26, 2007 7:34 PM
Howard Arnoff
Member Since '03

Howard Arnoff said:

When I started in the business, my broker joked, "when you get your license, they stamp 'sue me' on your forehead". My takeaway was to keep good notes and maintain accurate records during the transaction.

That's the world we live in today, too many don't take responsibility and sue as recourse. Without the details of your transaction, it sounds like you provided the necessary disclosures, the buyer has conveniently forgotten what they signed off on.

February 27, 2007 5:57 AM
Buzz Lucas
Member Since '03

Buzz Lucas said:

I agree with Norm. Just because the Buyer is waving a lawsuit threat around doesn't mean that the listing agent has to "make it all right."

Our office has the benefit of having access to legal advice and have weekly discussions about these kind of matters. The usual response is; "have good documentation, disclose, sign off, disclose, disclose and keep up your E & O because you will get sued sometime."

As long as someone thinks they can get something for nothing, there will be "squeezes" put on us. If you're doing what you should be, stand your ground........and have a good lawyer available. ;-)

February 27, 2007 4:04 PM

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Sheryl Lynn Webster
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