Real Estate Agents Become a Tempting Legal Target as Home Prices Fall
A trial begins Monday of a San Diego woman’s claim that her real estate agent is to blame for failing to tell her she was overpaying for her home.
The case could be the first of many brought by buyers as their homes drop in value below that of their outstanding mortgages, the New York Times reports. In the past, suits by buyers usually alleged undisclosed defects in their property. But suits over pricing could become more popular, coinciding with the increase in real estate agents representing buyers.
The San Diego case pits buyer Marty Ummel against her agent, Mike Little of ReMax Associates.
Ummel says that soon after she bought her home for $1.2 million in 2005, she learned that a house down the street sold for $105,000 less, even though it was the same size as hers and also had a swimming pool. She claims Little didn’t want to tell her about the other house for fear he would lose his $30,000 commission.
Little told the New York Times the case was ridiculous and he didn’t do anything wrong. He says Ummel is suing simply because of the bad real estate market. “When people see their home values and assets declining, they always feel there’s someone to blame,” he said. “This is a dangerous time for all of us in the industry.”
