Last updated on April 21st, 2024 at 09:27 am

Quick Answer

  • Reasons to report a real state agent may include failure to disclose important information, misrepresentation of facts, or failure to follow the terms of a contract.
  • Additional reasons may include money laundering, embezzlement, kickbacks, forgery, or even bribery.
  • Depending on the severity of the complaint, the real estate agent may face a fine, suspension, or revocation of their license.

Buying and selling a home is a big decision that involves a lot of money, time, and effort.

It’s not surprising that most people hire a real estate agent to help them navigate the process.

Real estate agents are professionals who guide clients through the complexities of buying or selling a property.

However, sometimes things don’t go as planned, and you may find yourself dealing with an agent who is incompetent or unethical.

In such situations, it’s important to know what red flags to look for and how to report misconduct.

We will discuss what real estate agents do, why reporting misconduct should be done, common reasons to report an agent, and the steps buyers or sellers can take to file a complaint.

We’ll also provide expert advice and resources to help you protect your interests when working with a real estate agent.

What is a Real Estate Agent

A real estate agent plays an important role in any real estate transaction. They are professionals who help buyers and sellers navigate the complex process of buying or selling a property.

  • According to NAR, there are almost 1.7 million members.
  • And over 3 million people with active licenses. 
  • According to the National Association of Realtors, in 2019, the median gross income for real estate agents was $48,690. (Source: National Association of Realtors)

In the United States, real estate agents are required to be licensed in the state in which they practice. (Source: National Association of Realtors)

They assist clients in finding suitable properties that meet their requirements, negotiate prices on behalf of their clients, draft contracts and ensure smooth closing of deals.

It is imperative to work with licensed agents who follow a strict code of ethics set by the National Association of Realtors.

However, failure to disclose information, or breach of fiduciary duty, can be reasons why one may consider filing an ethics complaint against a real estate agent.

If you encounter such issues during your real estate transaction, you can file a complaint form with the real estate commission or contact your local association of Realtors for guidance.

The Importance of Reporting Misconduct

Working with a professional real estate agent ensures a successful transaction within the real estate market.

Unfortunately, some realtors breach their fiduciary duty and engage in unethical behavior that can harm clients.

Report such misconduct promptly.

Reporting protects potential clients from falling victim to similar practices while serving as an example for other agents considering unethical actions.

Filing a complaint with the real estate broker or licensing board is the first thing you should do if you encounter misconduct during your transaction.

Ensure that you have documentation of any defects or poor communication before filing your formal complaint.

TREC, also known as the Texas Real Estate Commission will investigate every complaint that is filed against an agent.

Here is how to file one.

With strict articles of the code of ethics, real estate professionals risk suspension or revocation of their license when they breach their duties.

Reasons to Report a Real Estate Agent

If you’re involved in a real estate transaction, chances are you’ll be working with a real estate agent.

While most real estate professionals are honest and trustworthy, there are some who engage in unethical behavior.

  • If you encounter misrepresentation of property details or pricing, failure to disclose potential issues with the house, or conflict of interest, it’s important to take action.

  • Breach of fiduciary duty and unprofessional behavior like harassment or discrimination should also be reported.

Not only does reporting help maintain the integrity of the industry, but it can also protect other potential clients from falling victim to similar behaviors.

Remember that reporting misconduct can be done through state licensing boards or professional organizations that oversee real estate agents.

Incompetence or Negligence

Reporting incompetence and negligence is vital when dealing with real estate professionals.

Mishandled contracts or failing to disclose important information about a property can lead to financial loss or even formal litigation proceedings.

If you think that your realtor is behaving incompetently in handling your transactions, don’t hesitate to file an official complaint form with the relevant authorities like the National Association of Realtors (NAR), Colorado Real Estate Commission, Florida Department of Real Estate, local associations of Realtors, and other professional organizations overseeing the industry’s ethical standards.

Reporting such unethical behavior serves as a significant deterrent for other agents who may consider engaging in similar actions.

Failure to Disclose Information

When it comes to buying or selling real estate, honesty is key.

Part of a real estate professional’s job is to accurately represent properties they are working with.

It’s important for buyers and sellers alike that all relevant information is disclosed during a transaction.

Real estate agents have a strict code of ethics they must follow.

Failure to uphold this standard can result in consequences including suspension or revocation of their license.

Breach of Fiduciary Duty

Real estate professionals have a responsibility to act in the best interests of their clients.

When a realtor breaches their fiduciary duty by withholding information or misrepresenting property details or showing favoritism towards one party over another, the client needs to take action.

Breaches in this strict code of ethics can lead to suspension or revocation of their license and cause legal ramifications.

Remember when filing an official complaint for misconduct against a real estate broker or agent for breaching their fiduciary duties during a real estate transaction remember that documentation is key.

Misrepresentation or Fraud

Misrepresentation or fraud is a significant problem in the real estate market and one of the most common reasons for filing an official complaint against a real estate agent.

Unfortunately, some agents engage in unethical behavior such as making misleading statements about a property’s condition, features, or value to close on a deal quickly.

This type of misconduct can also involve fraudulent activities such as forging signatures or falsifying documents.

If you suspect that your agent has engaged in misrepresentation or fraud during your real estate transaction, gather all documentation and contact information related to the issue promptly.

Reporting unethical behavior not only protects yourself but also helps maintain professional standards within the industry and ensures that others are not similarly harmed.

MLS or Listing Misconduct

In cases of MLS or listing misconduct by a realtor or real estate agent during a transaction, buyers and sellers must be cautious about misleading information regarding properties and manipulation of data.

Keep an eye out for unethical behavior like dual agency without proper disclosure and violation of fair housing laws.

As per the articles of the code of ethics adopted by National Association of Realtors (NAR), real estate professionals have must be honest in every aspect of a real estate transaction.

In fact, they have fiduciary duty to act in the best interests of their clients and disclose all relevant information regarding the property being sold/purchased.

Any suspicion about such misconduct should trigger filing an official complaint with the local association of Realtors or contact Department of Real Estate (DRE) immediately.

This not only protects the parties involved but also upholds professional standards in the real estate market.

Email or Internet Misconduct

Unethical behavior by a realtor can occur through email or internet misconduct.

This might include sending unsolicited emails, online harassment of clients or other agents and the use of false advertising.

Clients have the opportunity to submit a formal complaint form with the state’s real estate commission which could lead to suspension or revocation of a license.

Steps to Report Misconduct

If you witness misconduct by a realtor during a real estate transaction:

  • Start by gathering documentation and evidence of the misconduct.

  • Then, reach out to the listing agent’s broker or supervisor to file an official complaint with their code of ethics or local association of realtors.

  • If they are unable to resolve the issue, submit a formal complaint form with your state’s real estate commission.

Take swift action against unethical behavior to protect yourself and future clients in the competitive real estate market.

Gathering Evidence

Collecting adequate documentation is the foundation when reporting a realtor for unethical behavior during a real estate transaction.

The importance of following this critical step cannot be overstated since having enough evidence is necessary before filing an official complaint with either the National Association of Realtors (NAR), the local association of Realtors or your state’s Department of Real Estate.

Gathering all relevant information includes keeping copies of all communication and contracts throughout the transaction, taking extensive notes on conversations or interactions regarding unethical behavior and documenting any actions that violate ethical standards or laws.

Without proper documentation, initiating legal action becomes complicated.

Filing a Complaint with the Brokerage

To report an unethical or incompetent real estate agent, start by gathering documentation such as email and text messages to support your claim.

One of the most common reasons for filing a complaint is poor communication or failure to disclose important details about the property.

Filing a formal complaint with the agent’s brokerage firm is the first thing you should do.

Use their official complaint form to file your grievance and provide as much detail as possible. 

Remember that reporting misconduct could help protect other consumers in the real estate market.

Filing a Complaint with the Licensing Board

If you encounter any issues with your realtor during a real estate transaction and have exhausted all avenues for resolving it yourself, then filing a formal complaint with the licensing board may be necessary.

Poor communication from your real estate broker or misconduct by the listing agent that compromises your best interests are some of the most common reasons that necessitate taking action against them.

Such poor behavior isn’t tolerated by organizations like the National Association of Realtors (NAR) and the Department of Real Estate (DRE).

Filing an official complaint is one option available to you in this scenario.

If your agent has demonstrated incompetence or neglected their fiduciary duties towards you in any other way during the closing process or otherwise breached their agreements with you, then filing a complaint form could be justified.

Expert Advice and Resources

Knowing when and how to report a real estate agent to protect your interests. Watch out for include unethical behavior, poor communication, and misleading information.

Reporting an agent can help prevent future misconduct and protect other buyers or sellers from similar experiences.

Seek guidance on how to proceed with reporting an agent from state licensing boards, professional organizations such as the National Association of Realtors (NAR), or a lawyer or real estate professional.

Keep in mind that real estate professionals are held to a strict code of ethics through articles of the Code of Ethics enforced by NAR and local associations of Realtors.

Most common reasons for filing complaints include incompetence or negligence, failure to disclose information, breach of fiduciary duty, misrepresentation or fraud in listings or during transactions occurring through email or internet misconduct.

Before filing a formal complaint with the brokerage or Department of Real Estate consider gathering evidence such as documentation regarding any defect(s) in disclosure documents related to closing set forth by the Title Company and/or Listing Agent’s representation.

Final Take-aways

The role of a real estate agent is to serve their clients with honesty and integrity. If you suspect that your agent has acted in any manner that is not in your best interest, it’s important to report the misconduct.

Failure to report misconduct can lead to dire consequences for both you and others who may work with the same agent in the future.

To avoid such situations, take necessary steps such as gathering evidence, filing a complaint with the brokerage or licensing board, and seeking expert advice.

Remember, reporting a real estate agent’s misconduct helps protect your interests and those of other buyers and sellers. 

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