Legal Question in Real Estate Law in California
I don't know if this is considered fraud
I have just recently purchased and sold a home by an agent who did not use her own name in the transaction. I was introduced to this agent who found me the new home, and sold the old home for me. She played so many roles in the whole transaction. She was the selling agent and buying agent for my old home. She was the loan broker for me and for the buyer of my old home.
However, during the transaction, I realized that she did not use her name at all in any of the documents. In fact, up to date, I still don't know her real name because she has been using different names with different people.
Although the buying/selling was done in November of 2000, I realized that there were a lot of things wrong or have problems. But I dont' know what I can do?
1) Is it legal for her to not use her own name, but use someone else's name on all the transaction documents? If not, who/where should I file this matter?
2) Can she be buying/selling agent, but also the loan broker at the same time?
3) A lot of things that she does seems to be illegal, should I report to legal authorities?
Thanks for your advice.
1 Answer from Attorneys
Re: I don't know if this is considered fraud
I am not a specialist in ethics of the real estate business, but I can give you a few general pointers that might be useful.
First, "dual representation" of buyer and seller is more the norm than the exception in California, and is usually prominently disclosed in the transaction forms brokers and agents use.
Also, it is not at all uncommon for real estate firms to have an in-house, or closely affiliated, loan brokerage activity. Compare this conceptually with "dealer financing" of autos.
Individuals as well as business entities can use fictitious business names--if this is indeed what was happening--but they have to comply with the publication of notice and affidavit of publication requirements. See Business and Professions Code sections 17900 and 19717.
In order to sue for fraud and win, you would have to prove that you were deceived, that the deception was intentional (or possibly negligent), that you suffered monetary harm, and that the harm was caused by the deception. You have not indicated the presence of two or three of these elements, so my hunch is you don't have a legal case against the agent.
On the other hand, the agent may be doing things that could cause harm and/or are unethical or illegal, even if you don't have a claim. If you feel strongly about this, contact the California Department of Real Estate and make a report.
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