How To File Complaint Against Real Estate Agent
Ask the Real Estate Lawyer: Real Estate Law Q&A
REM #LAW 735
By Ilyce R. Glink and Samuel J. Tamkin
Summary: A ThinkGlink reader is out a large
sum of money due to fraud committed by a real estate agent. Ilyce and Sam explain
the different places that a complaint can be filed but they strongly suggest
hiring a competent real estate litigator.
Q: I have serious fraud complaint about a real estate agent who represented
me as a buyer. I cannot afford the $10,000 initial fee to sue her and local
Board of Realtor's Ethics Committee is beyond useless, saying this is a two
year process and I should contact an attorney.
(article continues below useful links)
I would like to know if there were other complaints to establish a pattern
to add weight to my case. The Board of Realtor’s Ethics’ Committee
refuses to give me a list of realty companies she has previously worked for.
The state licensing web site only goes back 5 years and shows 5 or 6 charges
of serious fraud brought against her.
A Google search indicates that she has a tax lien and a major lawsuit and a
recent bankruptcy. The Realtor Board’s site shows none of these things,
and she has a clean slate with them.
How do I get the Board of Realtors to cooperate and give me a list of her prior
employers? The brokerage firm she is associated with is sympathetic and has
promised I will get my money back. But it has been a year now and I believe
they are trying to stall me until it is too late for me to complain to the Real
Estate Commission in Hawaii.
Do you have any ideas other than to hire a lawyer? I am out $100,000
A: You haven’t indicated why you are owed money or what happened. But
if you are right, and a fraud has been perpetrated against you, you do have
a number of options.
Your first choice is to hire an attorney. We know you don’t want to hire
an attorney, but you should consult with one anyway. It won’t cost you
$10,000 to get some basic advice on the situation and you’ll need an experienced
attorney to help you and to perhaps negotiate a settlement.
Litigation is expensive, if it comes down to that. But better you spend the
money with an attorney and get as much of your money back as possible than see
it all vanish.
Another option would be to file a complaint against the agent with the state
agency that regulates the licensing of real estate sales people in Hawaii. That
office may have a system in place for your complaint against the broker. However,
the state agency may be under no obligation to follow up on your complaint.
In some states, some enforcement offices are quite backlogged and are unable
to follow up on all complaints filed.
You can also file a complaint with the attorney general’s office in Hawaii
and with the Better Business Bureau. Finally, some Realtor firms and organizations
have their own internal complaint officers that can investigate your complaint
and assist you. But as you have discovered, they may not always work swiftly
nor do they necessarily look out for a consumer’s best interests first.
The National Association of Realtors, based in Chicago, has an Ethics division
and you can file a complaint, but the organization has little it can apply in
the way of pressure other than canceling the offending agent’s membership.
All of this leads back to the original suggestion that you might have to hire
an attorney to represent you in this matter. Some states have statutes that
would allow you to recover your attorney’s fees in case you win against
the broker. You won’t know whether you should proceed against the broker
and sue her until you have hired a competent litigator that has had experience
litigating real estate cases against brokers.
Samuel J. Tamkin is a Chicago-based real estate attorney. Ilyce
R. Glink’s latest book is 50 Simple Steps You Can Take To Sell Your
Home Faster and For More Money In Any Market. If you have questions for
them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022
or contact them through Ilyce’s website www.thinkglink.com