Agents Get Slapped By The Hand That Feeds

As the market has shifted the buyers and sellers are starting to question the ethical and legal responsibilities of the real estate agent.

Sunday's LA Times investigates this question. In a price sensitive market often the best price gets sold. However, this can cause a difficulty for the honest agent who is merely trying give an honest opinion of value and marketability of a home. Perhaps the seller might think the agent a sheister.

The LA Land Blog from the Times ask another question. Does your agent have any responsibility to guide you through the financing process? My fuzzy DRE licensing memory says to some extent. And certainly as you go down that path you are leaving yourself exposed.

Frankly, the whole sales process is a field of legal land mines and this may be a wake up call as to why the industry typically charges around 6% despite the increased prices of the recent past. Especially since California Department of Real Estate figures show the combined numbers of complaints have jumped 80% from ten years ago.