Ellen Fuller, Home Seller in Virginia Beach, VA

how do I report a real estate agent for fraud?

Asked by Ellen Fuller, Virginia Beach, VA Sat Apr 17, 2010

How do I report thisserious breech if ethics?I hired an agent to sell my house. The house was put on the market for 5.5 million. She said we should renovate the house and her husband was a contractor.There was an offer made before construction began. The offer was for 3 million for the house as is. I learned about this offer after renovations was done . I then fired her. It was a conflict of interest on her part. Had I accepted this offer before renovations were done there would have been no need of her husband contracting co. There was a conflict of interest on her part. How do I report this serious breech of ethics?

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Answers

10
Use the link provided by David.

However, the problem isn't one of conflict of interest (if disclosure that her husband was a contract) was made. And I'm not sure fraud was involved.

What did occur--from your recounting of the facts--is that an offer was made which was not presented to you. And that is a serious, serious problem unless you had given her some direction such as: "Don't even bother presenting any offers to me unless they're above $4 million." But, otherwise, all offers should be presented to you in a timely fashion.

As far as conflict of interest: If you were aware that her husband was the contractor and you made the decision to use him, there's no conflict of interest. In fact, the first house I bought, the Realtor's husband was a contractor. She recommended certain modifications be done to the house. His bid seemed reasonable. He did the work (and did it well). No conflict of interest.

As far as fraud: I'm not sure where the fraud comes in. Are you suggesting she misjudged the value of your property, either before or after the renovation? Or are you suggesting that she was in collusion with the person making the offer? I'm just not sure what the fraud is.

There's another lesson here--not for you, but for everyone else out there worried about making a low offer that might "insult the seller." You put your home on the market for $5.5 million. You would have sold the home for $3 million "as is." The lesson to all buyers is: Make an offer that works for you. Don't worry about "insulting the seller." And the lesson for sellers in such situations is to emphasize to your agent that you welcome all offers. I'm not defending your agent's actions for a second, but it's possible she thought such a low offer would insult you.

So: Report her. But recognize that your case is based on her not presenting an offer, and thereby not representing your best interests.

Hope that helps.
3 votes Thank Flag Link Sat Apr 17, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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I think Ellen concern here is that the Realtor did not present her with the offer in order to have her husband do the work and get paid, correct??? The agent should have presented the offer bottom line. I dont have any legal adivce for I am not a lawyer. If I was you I would do some investigation.
1 vote Thank Flag Link Tue Sep 14, 2010
The real estate agents are extremely fraudulent. Just look next door. They rent/sale to anyone. Why is there crime in your neighborhood? These are sleazy uneducated, unsophisticated walk alongs who open the doors to anyone. The Real Estate Commissioner needs to know of any fraudulent activity.
0 votes Thank Flag Link Thu Sep 26, 2013
Ellen,

Consult a real estate attorney immediately. Best of luck to you Ellen.
0 votes Thank Flag Link Wed Sep 29, 2010
The real estate agents are extremely fraudulent. Just look next door. They rent/sale to anyone. Why is there crime in your neighborhood? These are sleazy uneducated, unsophisticated walk alongs who open the doors to anyone. The Real Estate Commissioner needs to know of any fraudulent activity.
Flag Thu Sep 26, 2013
The real estate agents are extremely fraudulent. Just look next door. They rent/sale to anyone. Why is there crime in your neighborhood? These are sleazy uneducated, unsophisticated walk alongs who open the doors to anyone. The Real Estate Commissioner needs to know of any fraudulent activity.
Flag Thu Sep 26, 2013
The real estate agents are extremely fraudulent. Just look next door. They rent/sale to anyone. Why is there crime in your neighborhood? These are sleazy uneducated, unsophisticated walk alongs who open the doors to anyone. The Real Estate Commissioner needs to know of any fraudulent activity.
Flag Thu Sep 26, 2013
Report it to your local multiple listing service or department of state
0 votes Thank Flag Link Thu Sep 16, 2010
I suggest you begin by retaining an attorney and following their advice. If you choose, you can begin your professional ethics complaints by contacting the local Board of Realtors, if one exists, in your area. Ultimately, you can go to your state licensing division with your complaint. To my knowledge, all local boards, state licensing, and the National Association of Realtors all have ethics requirements.
0 votes Thank Flag Link Thu Sep 16, 2010
Hi,
she was obligated to present all the offers to you, even the verbal offers. She is clearly in violation. Please consult a real estate attorney.

Regards,
0 votes Thank Flag Link Tue Sep 14, 2010
Ellen,
Could it be poor communication?
Could it be lack of clear vision as to what your goal was in that transaction?

Like others, I am not trying to defend the agent. She should have known better.
However, could it be that you contributed to the unintended outcome, as well?

I certainly hope that you did not fire the agent to wiggle out of paying the commission that the agent was rightfully entitled to - after her husband did all the renovations and made your home more marketable.
0 votes Thank Flag Link Sat Sep 4, 2010
I hope you have got this problem resolved. If you still needing some help give me a call at 757-735-2628 or send me an email at monette_55@yahoo.com.
0 votes Thank Flag Link Wed Sep 1, 2010
I have provided a link below to the Virginia Office of Professional and Occupational Regulation, however, it may be wise to speak with a lawyer first because of the large amount of money involved.

A lawyer may advise you not to file a complaint and to file a lawsuit because the agent's insurance company may settle with you for the amount of money money you may have lost.
0 votes Thank Flag Link Sat Apr 17, 2010
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