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Attyadvisor
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 3713
Experience:  25 years of experience in general practice, real estate law and estate law.
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There was a conflict of interest on my property, the tenant

Resolved Question:

There was a conflict of interest on my property, the tenant knew the short sale representative and their sister was a realtor and worked in the same office as the short seller.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Attyadvisor replied 1 year ago.
Hello and thank you for your question.


You were trying to sell the property at a short sale? Have you filed for an investigation of the short sale agent. What is the status of the property today?
Customer: replied 1 year ago.

The property became a short sale due to the tenants did not allow anyone to see the property to allow for the property have potential buyers demand to drive the price upward. I chose to evict them after a month of them not letting the property be shown. I was not aware that
the tenant's sister lived next door, she was a realtor in the office of the realtor I hired to sell my property. Once the property became a short sale, I completed a short sale application and after that I received a call from the short sale negotiator that he spoke to the tenants directly because of his relationship to the realtor next door to my tenants. I spoke with my realtor again and advised him that we need another short sale negotiator to complete the short sale due to the conflict of interest, he said no problem and that he had several other short sale


negotiators to work with. The notice to vacate was January 2013. February went by, March went buy, the tenants did not pay any money to me after January. When I inquired on the progress of the getting the tenants out the realtor was getting his information from the short sale neg. I said why is he still involved on my property. I said who is the short sale neg. he said himself and he stated he did not have short sale experience and was getting advice from the conflict of interest short seller and I was continuing to pay the mortgage payments for 3 months until I could not and stopped pay in May. At that point I fired them and hired another realtor and he help me get them out but this just happened. I did not know that the realtor and the tenants were neighbors and were always one step ahead of me due to my realtor did not work in my best interest but the best interest of the tenants.


 

Expert:  Attyadvisor replied 1 year ago.

You have a cause of action to file suit against the short sale agent as well as file an ethical complaint.

The Realtor had a fiduciary and ethical duty to you to sell the property using their best efforts do act in your best interests. You have a cause of action against the Broker of the company. This situation may also include fraud.

 

“A broker has a fiduciary duty to its client. (Civ. Code, § 2079.24; Field, supra, 63 Cal.App.4th at p. 25 [“a broker's fiduciary duty to his client requires the highest good faith and undivided service and loyalty”].

 

The duties include but are not limited to the following:

 

Confidentiality

Loyalty

Disclosure

Accounting

Obedience

 

This link sets out the definitions of the above duties http://realestate.about.com/od/realestatebasics/p/fiduciary_duty.htm

 

The elements required for a cause of action for breach of fiduciary duty in California are

 

1.A Fiduciary duty existed,

2.Breach of the fiduciary duty occurred,

3.The breach was the proximate cause of harm or damages.

Mosier v. Southern California Physicians Insurance Exchange (1998) 63 Cal.App.4th 1022, 1044.


This is a link to the California Bureau of Real Estate complaint process

http://www.bre.ca.gov/Consumers/FileComplaint.html



It would be my pleasure to provide you with information to assist you in moving forward in this matter.

Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 3713
Experience: 25 years of experience in general practice, real estate law and estate law.
Attyadvisor and 5 other Real Estate Law Specialists are ready to help you
Expert:  Attyadvisor replied 1 year ago.
Thank you.

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