Asked by Kevin G., Los Angeles, CA • Mon Aug 6, 2012
A seller of a residential property signed a listing agreement with a California-licensed real estate salesperson. The home needed some updating, and the agent offered to coordinate that for the seller. The seller requested that the agent provide them with bids so that they could decide what work to do or not to stay within their budget. Instead, without the seller's authorization, the agent hired unlicensed contractors and allowed them into the home to begin work. After the fact, the agent sent the seller invoices for the work (work which had NEVER been authorized by the seller). Some of that work was completed (poorly), and some was not. The seller requested immediate cancellation of the listing agreement, but the agent and the agent's broker refused. What specific Real Estate laws/ethics codes were violated? How would one best go about handling this situation and reporting it to the California Department of Real Estate?
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