Molsby & Bordner LLP issued the following announcement on Aug. 24.
A class action lawsuit has been filed in another state. The central focus of the real estate disputes has to do with dual agents and whether or not a listing company failed to comply with regulations. The lead plaintiff in the case is a woman who recently purchased a home but now claims certain issues were not properly disclosed to her at the time of the transaction. California home buyers may want to follow this case.
The woman had initially contacted the listing agent of a home that was selling for just under $600,000. Soon afterward, a different agent contacted her to make arrangements to show the house. While there, the agent told her that, if she wanted to make an offer, she should come up in price because there was a bidding war ongoing at the time.
The woman took the agent's advice and set a closing date for the house even though inspectors listed repairs that needed done. In the meantime, the woman learned that the agent who showed her the house and convinced her to raise her offer was an employee of the listing agent. When a single brokerage represents both a buyer and a seller, it is known as a dual agency, which is not necessarily illegal as long as agents comply with regulations.
In this particular case, the woman also learned that the agent who showed the house was a relative of the listing agent and was himself a co-lister of the home. The class action claim that has arisen from the real estate disputes states that the listing agency is engaged in predatory practices that are not in keeping with current disclosure laws. Those in California facing similar issues may want to discuss their situations with others who are well-versed in real estate laws in this state.
Original source can be found here.