Legal Question in Real Estate Law in California

When a broker is sued unde a claim of respondeant superior, for fruadulent and illega acts, is it covered under the arbitration clause of the listing agreement, if he also acted as a listing agent and make a fraudulent sales and purchase agreement, he also repsrented himself as the broker company,his employer, he constructed a purchase escrow under an LLC where there was no listing agreement, and the broker became aware but failed to and delayed in termination him and then simply returned the license to the DRE without filing a complaint. The agent was ultimately convicted of 4 criminal fraud counts of forgery?


Asked on 11/17/11, 4:52 pm

3 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Don't sign arbitration clauses. Can't figure out what you are talking about, because you haven't given any facts. Just saying that what someone did was "fraudulent" or "illegal" won't cut any ice with a court. You have to say what it was that he did that was fraudulent and/or illegal.

Consult an attorney. Watch out for legal time limits.

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Answered on 11/17/11, 4:55 pm
George Shers Law Offices of Georges H. Shers

If the broker's actions are under the listing agreement then your suit against him would be subject to the terms of that listing agreement. But Mr. Stone is correct that we can not understand what you are talking about and you must supply more information. It appears that some of the acts may be outside the purview of the listing agreement.

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Answered on 11/17/11, 8:45 pm
Anthony Roach Law Office of Anthony A. Roach

I think I know what you are asking. You want to sue your broker for fraud, and are wondering whether you are bound by an arbitration clause in your listing agreement with your broker.

There are some laws that regulate listing agreements. Code of Civil procedure section 1298, subdivision (b) provides for the statutory formalities to make the arbitration clause valid. I could assume that you have a standard CAR form listing agreement which complies, but I have seen some weird things before.

Depending on the wording of the arbitration clause, fraud claims against your broker are most likely included. But I can't tell you all of that without reviewing the listing agreement and getting detailed facts about the nature of the the fraud allegations against the broker.

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Answered on 11/18/11, 10:46 am


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