Lawsuits Against Realtors: Protecting Homeowners and Buyers from Real Estate Misconduct
At L is For Lawyer we are committed to holding real estate professionals accountable when they betray the trust of their clients. Whether you are a buyer, seller, or investor, your relationship with a licensed realtor is built on trust, transparency, and professional responsibility. When that trust is broken, the consequences can be financially devastating—and legally actionable.
Our firm represents clients in lawsuits against realtors involving fraud, breach of fiduciary duty, negligence, and breach of contract. We leverage our litigation experience to uncover misconduct, recover damages, and protect your property rights.
Fraud by Realtors
Fraud in real estate can take many forms. Some realtors misrepresent material facts, conceal critical information, or knowingly facilitate transactions that benefit themselves or affiliated parties at the client’s expense. Common fraudulent acts include:
- Misrepresenting earnest money deposits
- Concealing known defects or defaults
- Falsely representing that contingencies have been waived or satisfied
- Creating the appearance of compliance with contractual terms when none exists
At L is For Lawyer, we are skilled in identifying patterns of deception, uncovering the paper trail, and proving intentional misrepresentations with clear, strategic legal pleadings. Fraud claims can carry punitive damages when the misconduct is especially egregious.
Get a Consultation
Breach of Fiduciary Duty
Loyalty:
Realtors must act in the client’s best interest at all times, placing the client’s interest above their own or any third party’s.
Disclosure:
Agents must promptly disclose all material facts that could affect the client’s decisions, including defects, conflicts of interest, or risks of default.
Obedience:
Realtors must follow the lawful instructions of their client.
Confidentiality:
Information shared by the client must remain confidential and may not be used for personal gain.
Reasonable Care:
Realtors are expected to act with the care, competence, and diligence normally exercised by professionals in their field.
Accounting:
They must account for all funds and documents entrusted to them and ensure proper handling of earnest money.
Clarity and Precision
A well-drafted contract must be clear and precise. This means using specific language to describe the rights, responsibilities, and expectations of each party involved. Ambiguities or vague terms can lead to disputes and legal challenges.
Terms and Conditions
The contract should detail all relevant terms and conditions, including payment amounts, deadlines, property descriptions, and any contingencies. It should also specify the consequences of failing to meet these terms.
Legal Requirements
Real estate contracts must comply with state and local laws. In Minnesota, this includes adhering to regulations related to property transactions, disclosure requirements, and contract formalities.
Parties Involved
The contract should clearly identify all parties involved in the transaction. This includes their legal names, roles, and contact information. Proper identification prevents confusion and ensures that all parties are bound by the agreement.
Signatures and Dates
To be enforceable, the contract must be signed by all parties and dated. Signatures indicate that the parties agree to the terms, while dates provide a timeline for when the agreement was made and when obligations are due.
Importance of Contract Drafting in Real Estate
When a realtor violates any of these duties—such as failing to retain earnest money, concealing a buyer’s default, or placing their interests above yours—we are prepared to assert claims for breach of fiduciary duty and pursue damages accordingly.
Realtor Negligence
Even without intent to defraud, a realtor may be liable for negligence if their carelessness causes harm to a client. Negligent conduct may include:
- Failing to submit or process key documents (such as purchase agreements or cancellations)
- Mishandling escrow procedures
- Failing to verify a buyer’s financial ability to perform
- Ignoring critical deadlines or statutory requirements
Negligence claims require showing that the realtor owed you a duty of care, breached that duty, and caused financial harm as a result. Our firm understands how to document and present this chain of causation in court.
Breach of Contract by Realtors
When realtors enter into formal agreements—such as exclusive right-to-sell contracts or agency agreements—they are bound by the terms of those contracts. Breach of contract claims may arise when a realtor:
- Fails to perform contractual duties (e.g., submitting an offer, marketing the property)
- Violates express terms (e.g., failing to provide regular updates or maintain client confidentiality)
- Breaches implied promises of good faith and fair dealing
We bring these claims with precision, often in combination with tort-based claims, to maximize our client’s legal remedies.
Our Approach
Real estate litigation is complex. It often involves multiple parties—realtors, brokers, title companies, and others—who may work in concert or fail in overlapping duties. At Campoli Law, we:
- Conduct forensic investigations of transaction history and disclosures
- File tailored complaints alleging fraud, breach of duty, and related claims
- Hold realtors and their supervising brokers accountable for systemic misconduct
- Pursue recovery of financial damages, loss of equity, and, when appropriate, punitive damages
Whether you are dealing with a failed sale, a fraudulent closing, or misconduct that deprived you of leverage in a real estate dispute, we can help.
Contact us today for a confidential consultation. Let us help you restore what was lost and ensure your voice is heard.
Ensures Compliance
Contracts must comply with legal standards and regulations. Drafting contracts with attention to legal requirements ensures that the agreement is valid and enforceable, reducing the risk of legal challenges.
