law suit: When a Buyer really should sue you….. - 01/24/09 04:07 AM

When a Buyer really should sue you…..
Having been in this business for many years, I never cease to be amazed at how cavalier some agents are with other people’s money and contract rights. It seems like another cycle of “sue-the-agent” for negligence and unprofessional conduct has begun with no less than four agents being successfully sued in the last six months in my market area.
Some agents, thankfully a minority, are more interested in closing the deal than preserving a buyer’s purchase considerations and in having a full understanding the condition of a property in which they are interested. … (0 comments)

law suit: Watch Out for Local Association Vigilantes - 08/25/08 08:25 PM
As a Principal Broker, I regularly monitor state and local disciplinary proceeding to keep abreast of any trends or emerging  real estate  practice  areas that  are problems I should be aware of for my own company. Fortunately, my local Association (NVAR) has fairly reasonable folks serving on grievance and disciplinary panels. Unfortunately, that's not true in all jurisdictions.
The North Central Board of Realtors (Association) went out of it's way to either make an absurd example or to excessively punish one of their own for an offense that, by their own procedures, merited a much smaller consequence. The Realtor involved had … (4 comments)

law suit: Minnesota Caller Ordered to Pay Brokerage $20,000 - 06/28/07 10:13 PM
A Missouri court became the second court to enter an injunction against Ryan Swanberg (“Caller”) and ordered him to pay approximately $20,000 in damages and attorney fees. The Caller had threatened real estate brokerages across the country with litigation last fall for allegedly not complying with the federal “Do Not Call” rules. This injunction also prohibits the Caller from “citing or relying upon the TCPA or its regulations as grounds upon which to make demands, seek payment of money or the compromise of any claims whatsoever”. 
The Caller employed the following method. First, he would contact a real estate brokerage via … (9 comments)

law suit: Developer failure disclose soil problems remanded to trial court for further review - 05/17/07 10:58 PM
Utah’s highest court considers whether home developer had a duty to give purchasers a prior soil analysis report finding that the property’s soil could not support a large structure. Woodside Homes Corporation (“Developer”) purchased land to develop into the “Panorama Point” subdivision (“Subdivision”). One of the lots was purchased from the Church of Jesus Christ of the Latter-day Saints (“Church”). The Church had intended to build a large structure on the property, but abandoned its plans upon receiving the so-called “Delta Report”. This report found that the soil was collapsible because it contained an excessive amount of moisture and so was … (0 comments)

law suit: How Agressive Should You be in Seeking Back-up Offers? - 05/03/07 10:44 PM
Alaska’s highest court has considered whether a listing broker improperly marketed a property in the MLS as “active” even though the property was still under contract. In 1998, Craig Lightle (“Salesperson”) of Realty Executives Alaska (“Brokerage”) listed a home for sale. On April 17th, the Williamses (“Buyers”) made an offer to purchase the property and the sellers accepted the offer. However, prior to the scheduled closing date of June 12th, the Salesperson learned that the Buyers’ loan application had been denied. Based on this information, the Salesperson decided to re-list the property in the multiple listing service as an active listing. … (5 comments)

law suit: Anti-Leasing Covenant Found to Violate FHA - 04/26/07 10:12 AM
An Indiana court has considered whether a homeowner’s association enforcement of an anti-leasing covenant violated the federal Fair Housing Act (“Act’). In 1996, Algie and Edna McGlothin (“Owners”) purchased a residence in a housing complex known as Villas West II of Willowridge (“Villas”). The Villas were originally managed by the Jim Bagley Construction Company (“Construction Company”), but the Construction Company turned over management of the development to the homeowner’s association (“Association”) in May 2000. When the Owners purchased their unit, the purchase agreement contained a covenant which prohibited leasing within the Villas “for the protection of owners with regard to financially … (3 comments)

law suit: Not in my neighborhood please……………………… - 03/22/07 04:47 AM
As reported by the Associated Press, The Happiest Place on Earth doesn’t want any new neighbors. The Walt Disney Co. has sued the city of Anaheim to stop the proposed construction of 1,500 condos, including several hundred low-income units, at the doorstep of Disneyland. Housing advocates say the units are desperately needed to accommodate workers who are essential to the city’s huge tourism industry but can’t afford to live there. Many workers spend at least four hours a day commuting from outlying areas where rent is cheaper. “We helped to build this resort, but now they’re saying we can’t live here,” … (2 comments)

law suit: Prospective Buyer Cannot Recover for Injuries - 03/15/07 05:59 PM
An Ohio appellate court has considered whether a prospective buyer could recover compensation from a buyer’s representative for injuries suffered by the prospective buyer during her unaccompanied tour of a home under construction. Patricia Al-Sorghali (“Prospective Buyer’) contacted real estate salesperson Terry Golden (“Salesperson”) of Modene & Associates (“Brokerage”) about her interest in an unfinished home. The Salesperson contacted the listing broker about the home’s availability, and she told the Prospective Buyer she was not certain whether there was an open house scheduled that day but that the Prospective Buyer could take a look at the home by entering through the … (15 comments)

law suit: Injunction Granted in Ohio Cybersquatting Case - 03/10/07 11:50 PM

An Ohio federal court determines that large brokerage is likely to succeed in its cybersquatting lawsuit against a competitor who had registered domain names which bore a strong resemblance to the brokerage’s registered trademarks and owner’s names, and so the court entered an injunction prohibiting the competitor from using these domain names.

HER (“Company”) is an Ohio corporation which provides real estate brokerage services under the name “Real Living”. The Company’s name is derived from the initials of its founder, Harley E. Rouda, Sr. His son, Harley E. Rouda, Jr., and his son’s wife, Kaira Sturdivant-Rouda, are both involved in … (2 comments)

law suit: Counteroffer Is a Rejection of Earlier Offer - 03/06/07 10:45 AM
Counteroffer Is a Rejection of Earlier Offer A Florida court has considered whether a prospective buyer could choose to accept a seller’s counter offer to the prospective buyer, even after the prospective buyer had countered the seller’s counter offer. Theresa Polk (“Seller”) listed 181 acres of land for sale with a real estate broker. BHRGU Avon Properties, LLC (“Prospective Buyer”) made an offer to purchase the property on January 24, 2005. The Seller made two counteroffers (“Counteroffers”) on February 2 & 3, 2005, giving the Prospective Buyer until 5PM on February 7, 2005 to accept the offers. On February 4th, the … (33 comments)

law suit: Broker Liable For Changing Terms of Partnership - 02/17/07 12:22 PM
 
A Maryland appellate court has evaluated whether a managing broker improperly attempted to alter partnership agreement between parties.

In 2001, Aaron Hargrove (“Hargrove”) and Jerry Mathis (“Managing Partner”) of Prudential REALTORS® and Mathis Realty, Inc. (collectively, “Brokerage”) entered into an independent contractor agreement (“Agreement”). Under the terms of the Agreement, Hargrove agreed to pay the Brokerage a set fee per month. In return, Hargrove retained 100 percent of his commissions and also was allowed to have four licensees working under him. Hargrove would not incur any extra costs for having these licensees work under him, except that these extra licensees … (5 comments)

law suit: Nondisclosure Alone Cannot Overturn Arbitration - 02/17/07 10:24 AM
 
Federal appellate court reverses its earlier decision and determines that arbitrator’s failure to disclose his minimal contact with prevailing party’s attorney did not require vacating an arbitration award. New Century Mortgage Corporation (“New Century”) is a mortgage company. Positive Software Solutions, Inc. (“Positive”) has developed software for the mortgage industry, including its “LoanForce” software program. New Century obtained a license to use “LoanForce” from Positive. Positive believed that New Century was taking portions of the “LoanForce” software and copying it into other programs, and so Positive brought a patent infringement lawsuit against New Century. The trial court entered an injunction prohibiting … (0 comments)

law suit: Realtor’s attorney defends 'white-flight' flyer incident - 02/09/07 04:48 AM
Merrillville, Ind., Realtor Mary Ann Winslow maintains her intentions were pure after town officials accused her of using scare tactics to encourage white homeowners to move from their neighborhood by citing a bogus bill that threatened to incorporate parts of the town and lower home values. So why did she do it? Read her attorney’s letter to find out.
A Merrillville, Ind., real estate agent maintains her innocence Jan. 2 for allegedly using scare tactics to encourage white homeowners to move from their neighborhood.  
In October 2006, town officials accused Mary Ann Winslow of distributing a flyer to some white residents … (8 comments)

law suit: Broker Liable for Misleading Client - 02/09/07 02:42 AM
A New Jersey appellate court has considered a challenge by a real estate broker to the trial court’s decision that the broker breached his fiduciary duty to his clients by misrepresenting the status of property negotiations. The Curran Group II, L.L.C. (“Developer”) purchases land, acquires the necessary permits for development of the land, and then sells the subdivided parcels to builders or developers. The Developer acquired three large parcels in New Jersey and began the process of obtaining the appropriate development approvals. The Developer realized that it needed to create additional road access to one of the parcels, and so the … (2 comments)

law suit: Are you guilty of "Steering"? Inadvertenly or otherwise? - 02/07/07 10:42 AM
The directing of homebuyers to neighborhoods where they “belong” not only violates the buyer's rights but also applauds segregation and the ongoing cycle of discrimination, according to one industry expert. Why is steering so dangerous for the economy, and how can agents stay clear of the illegal act? Read on. 
Discrimination in real estate, specifically “steering,” the process of profiling prospective buyers based on race, color, nationality, religion, sex, lifestyle or disability, to housing in areas where certain groups are deemed to “belong,” is an seemingly ongoing industry problem.  
The subject recently came in focus when the State of Michigan Civil Rights … (0 comments)

law suit: Buyers burn their bridges with notice of defects - 02/04/07 01:20 AM
Against their agent’s advice, a couple wanting to buy a Wisconsin property submitted a laundry list of defect fixes the seller would have to comply with before they would consider purchasing. However, not willing to fork out thousands to repair a loose toilet base or remove high amounts of asbestos, the seller threw out their offer and accepted another. So, did the couple’s frantic backpeddling and court appearance ultimately land them the house? Read on to find out.
Buyers hoping to procure a Racine, Wis., property in 2003 learned the hard way that you have to be careful what demands you … (1 comments)

law suit: NJ Affordable Homes dupes 1,200 investors - 02/03/07 11:56 AM
In court documents released last week, the Security and Exchange Commission revealed investors had given $123.3 million to the alleged Ponzi scamming firm — up more than three times from the SEC’s original $40 million estimate. So why isn’t the owner behind bars? Read on to find out. 
New financial data has been disclosed about the alleged Ponzi scamming firm, NJ Affordable Homes.  
When the Security and Exchange Commission (SEC) filed suit against the investment company last year, it quoted about 500 people had given $40 million to the firm with the promise of 15 percent returns. However court documents released … (1 comments)

law suit: No Commission Reduction Required - 02/02/07 02:39 AM
A Connecticut appellate court has considered whether a seller could demand a refund from a broker because the broker received a commission based on a price which exceeded the actual sale price. Donna Smith (“Seller”) owned Georgetown Early Learning Center, LLC (“Day Care Center”), a child care facility. The Seller listed the Day Care Center for sale with Coldwell Banker Commercial N.E.R.A. LLC (“Brokerage”), agreeing to pay the Brokerage a percentage of the sale price if the Brokerage procured a buyer for the Day Care Center. The Day Care Center was listed for sale at $350,000. The Brokerage produced a buyer, … (1 comments)

law suit: Verdict Against Brokerage Reinstated - 01/25/07 02:17 AM
A federal appellate court has considered whether the evidence supported a jury verdict against a brokerage for its role in negotiations for a commercial building. George Stinson and Ed Lewis (collectively, “Owners”) owned a building which contained a large nightclub called “The Connection of Nashville”. In 2003, George Alexander (“Salesperson”) of Cyre-Leike, Inc. (“Brokerage”) approached the Owners on behalf of William Deshields (“Deshields”) about Deshields’s interest in purchasing the property. No agreement was reached. Later that year, the Salesperson again contacted the Owners about Deshields’s interest in purchasing the property. One of the Owners and Deshields negotiated a purchase price for … (0 comments)

law suit: MLS Wins Lawsuit Against Municipalities - 01/25/07 02:12 AM
A Wisconsin appellate court has considered whether the state’s open records law required three municipalities to present electronic data in the same electronic format they use to store their property data. WIREdata, Inc. ("WIRE"), a company owned by Multiple Listing Services, Inc. (a regional REALTOR owned multiple listing service in Wisconsin), obtained data about properties in its service area by paying fees to various municipalities. However, three municipalities ("Municipalities") refused to provide this information to WIRE because they had license agreements with Assessment Technologies of WI, LLC ("Vendor"). The Vendor had developed a computer program named "Market Drive" ("Program"), which allows … (0 comments)