Johnson Law represents Coloradans in claims against real estate agents, real estate brokers, and Realtors involved in their real estate purchase or sale. In Colorado, all real estate agents are called brokers, whether or not they own the real estate brokerage or not. A Realtor is a real estate broker that also belongs to the National Association of Realtors and subscribes to the NAR’s code of ethics.
Most claims involving real estate brokers in Colorado arise out of the failure to disclose or adequately inform a home purchaser about material facts about a home that was sold. Real estate brokers are paid when deals close and they have a financial disincentive to disclose problems that could kill the deal. Johnson Law attorneys have investigated and/or brought claims and cases against dozens of real estate agents for their failure to disclose construction defects and other adverse material facts, including but not limited to:
- Expansive soil problems
- Foundation defects and problems
- Defective stucco
- Floor slab problems
- Framing defects
- Leaky windows
- Water intrusion
- Insufficient water well production
- Methamphetamine use and/or production within the home
- Use of the home as a pornographic film studio
- Construction without permits
- Construction in violation of building codes
- Construction in violation of zoning codes
- Construction in violation of fire codes
Many of the specific things that a real estate broker must do for you in a transaction are listed in the standard contracts signed by real estate agents and homeowners. In addition to the contracts, if you hire a real estate broker as either your selling broker or buying broker (as opposed to a transaction broker that technically represents neither buyer nor seller), the real estate broker owes you a fiduciary duty. A fiduciary duty means the obligation to work in the best interest of the client. A breach of the fiduciary duty not only leads to damages as a result of the wrongdoing by the broker, but also a refund of any commission made on the purchase or sale. Most claims against real estate brokers in the state of Colorado are based on contracts that allow the winning party to get their attorney fees and costs paid by the losing party.
(1) To perform the terms of the written agreement made with the client;
(2) To exercise reasonable skill and care for the client;
(3) To promote the interests of the client with the utmost good faith, loyalty, and fidelity, including, but not limited to:
(4) other duties to comply with other Colorado laws relating to real estate brokers and fair housing.