As a real estate agent in the State of Florida, you have a fiduciary duty to your clients. You must act in your client’s best interests, not your own. You must also act with the highest standard of care. “This may include dishonesty, such as not disclosing land disputes or flood risk. Any breach of trust and honesty can lead to a claim of breach of duty. Documenting everything can be a good defense against breach of duty.”
Under Florida Ann. St. § 475.278, as an agent, you are required to provide your client with:
- Dealing honestly and fairly;
- Loyalty;
- Confidentiality;
- Obedience;
- Full disclosure;
- Accounting for all funds;
- Skill, care, and diligence in the transaction;
- Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; and
- Disclosing all known facts materially affecting the value of residential real property and are not readily observable.
A breach of any of these obligations can result in a lawsuit. Recently, two buyers brought a suit against a real estate agent and the broker, alleging breach of duty and negligence. The clients asserted that the agent and broker failed to exercise reasonable care when communicating important financial information to the buyers. According to the suit, the defendants failed to employ customarily accepted best practices to protect the buyers’ confidential and sensitive financial information. As a result, the buyers wound up wiring a large amount of cash to a fraudulent bank account. It is vitally important that, as an agent, you review every aspect of the contract with a lawyer to protect yourself and your client. If a clause or a term seems questionable, raise the issue with the real estate lawyer. This will help reduce the possibility of future lawsuits. For any questions, contact Kleiner Law Group today.
