Insurance & employment litigation · California & Nevada

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Real estate · Agents and brokers

Disputes involving real estate agents and brokers

Real estate agents and brokers owe duties to their clients, and in California a seller’s agent must also inspect and disclose to buyers. Fernald & Zaffos brings claims against agents and brokers for breach of fiduciary duty and negligent representation, and defends agents and brokers against those claims.

Leads this practice

Brandon C. Fernald · Founding Partner

Founded the firm in 2009 after seven years at Norton Rose Fulbright.

Representing both sides

We represent both sides

We understand the duties owed by agents, brokers, sellers and buyers, and we enforce or defend against them depending on who we represent.

For buyers and sellers

Claims against agents and brokers

An agent who fails to disclose what they knew, gives bad advice or puts their own interest first can be liable to the client.

For agents and brokers

Defending agents and brokers

Agents and brokers are often named alongside a seller in a nondisclosure suit. We defend them on the disclosure record and the scope of their duty.

Duties agents and brokers owe

An agent owes the client fiduciary duties of loyalty, honesty and reasonable care. In California, a seller’s agent on a residential sale must also conduct a reasonably competent and diligent visual inspection of the accessible areas of the property and disclose what it reveals (Easton v. Strassburger (1984) 152 Cal.App.3d 90; Civ. Code § 2079).

Common claims

  • Failing to disclose known defects or red flags
  • Misrepresenting a property’s size, condition, zoning or income
  • Undisclosed dual agency or conflicts of interest
  • Negligent advice about the transaction or its deadlines
  • Mishandling deposits or escrow instructions

Deadline

Claims for the inspection duty have a two-year limit

In California, a claim for breach of the agent’s statutory inspection duty must be brought within two years from the close of escrow, possession or recording, whichever comes first (Civ. Code § 2079.4). Other claims have different periods.

Real estate results

Nondisclosure defense · Settlement

Nominal settlement

Settled after we compelled the plaintiffs’ depositions in Los Angeles

Home sale

Real estate nondisclosure · Settlement

Seller took back the home

Settled before trial after we defeated multiple summary judgment motions

Home purchase

Prior results do not guarantee a similar outcome.

Common questions

Don’t see yours? Call (323) 410-0300.

Can I sue my real estate agent?

Yes, if the agent breached a duty owed to you, such as failing to disclose what they knew or giving negligent advice, and you suffered a loss because of it.

Does the seller’s agent owe anything to the buyer?

In California, yes. A seller’s agent on a residential sale must visually inspect accessible areas and disclose material facts the inspection reveals, and must not misrepresent the property.

I’m an agent named in a nondisclosure lawsuit. What should I do?

Notify your brokerage and your E&O carrier, preserve the transaction file and your communications, and get counsel before responding.

How long do I have to bring a claim against an agent?

It depends on the claim. The statutory inspection-duty claim has a two-year limit. Fraud and fiduciary claims have different periods.

Does your broker license matter?

It means we read transaction files and disclosure packets with a broker’s understanding of how deals are done, which helps on both sides of these cases.

Related

Practice page

When a seller hides a defect or a fact that affects value.

Guide

What sellers must disclose and how long you have.

Practice page

Misrepresentation, concealment and investment fraud.

Practice page

Claims involving insurance brokers.

The information on this page is general and is not legal advice. Contacting the firm does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.

Get your dispute reviewed

An attorney will get back to you promptly. Have the purchase contract, disclosures and any letters handy if you have them.

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Contacting the firm does not create an attorney-client relationship. Please don’t send confidential details until we confirm there is no conflict.

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What happens after you send it

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We reach out

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02

We review your situation

We go over the facts and any documents you share, and check for conflicts.

03

We talk through your options

We explain where you stand and the paths forward, so you can decide what to do next.