Mortgage Foreclosure & Refinance Resource

In a case currently being litigated in Carlsbad, California the home buyers claims that the real estate agent hid the information that similar homes in the neighborhood were selling for less because he feared she would back out and he would lose his $30,000 commission and are now suing the agent, saying it was all his fault. Real estate lawyers and brokers say the case, which goes to trial in North County Superior Court on Monday, is likely to be the first of many in which regretful or resentful buyers seek redress from the agents who found them a home and arranged its purchase.

When buyers have sued their agents in the past, the cases focused on problems with the property itself, often alleging failure by the broker to disclose a known hazard or maintenance issue. After reviewing litigation records for the last five years, the National Association of Realtors could find no cases that revolved solely around the question of valuation.

The original suit included the appraiser, who was accused of skewing his report to make the house seem worth the purchase price, and the mortgage broker. Modest settlements have been reached with both.