Legal Question in Real Estate Law in California
Realator Fraud
I recently sold a home and used a broker, he hired a general contractor to do repairs on it and I was billed an excess 0f 40,000 dollars. I checked into the contractor and found his license was suspened and still is. further more he is a friend of the agent. The agent then signed both the contractors name and his own name and deposited the entire check in his own account. I cannot get him to show me reciets for all the supposeed work done. What are my rights if any. and is it possible to get some of the money back?
2 Answers from Attorneys
Re: Realator Fraud
In addition to the comments of Jed you may wish to contact the Department of Real Estate. The web address is http//www.dre/cajwmet.gov. This website will give you the address of the office closest to you.
You could also contact the state contract licensing bureau. The fact that the contractor's license is expired could make this conduct a felony. The conratctor licensing board is very active in investigating this type of conduct.
Additionally your real estate agent should have placed a limit on the amount that you would pay for repairs. The failure of your real estate agent to limit the cost of repairs that you would pay is a breach of his duty. Further his refusal to give you an accounting indicates fraud on his part. You should immediately check the department of real estate to insure that he is licensed. If he is not licensed report it to the district attorney or California deparment of consumer affairs.
Contacting a local newspapar, radio or television station that has a consumer hot line may get you some results. If this person works for a large real estate franchisor such Better Homes or Century 21 contact the regional office and report this conduct. The franchisor may be able to help you.
Hiring an attorney that does real estate law would be your best approach.
Lyle Johnson
Lyle W. Johnson Attorney at Law
152 N. Third Street, Suite 510
Re: Realator Fraud
You certainly may have a case. The broker should not have used a friend without
full disclosure to you: the broker is a fiduciary to you and such conduct may be constructive
fraud (or actual fraud). The deposit of monies into his account may be evidence that he received
some benefit, which, unless disclosed, would be wrongful. You are entitled to a full accounting of
all the sums. The suspended license may be further evidence of the broker's wrongdoing in selecting
the contractor, but no facts show that it independently has caused you damage.
Jed Somit
Jed Somit, Attorney at Law
1440 Broadway - Suite 910
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
