Legal Question in Real Estate Law in Oregon

sale misrepresentation

We recently sold our home through an agency. I have a couple of questions. Our home sold for more money than what they told us it did. We found this out from the buyer. If an agency misrepresents the facts and figures and straight out lies during a sale, doesn't this negate any contract or verbal agreement since any decisions we made were based on falsehoods? We also straight out asked them if they made a commission and we were told no. The agent was very adamant about it. I asked her if this happened to them often and she said no that sometimes they act as a broker between the two parties. At what point during the sale do they disclose that they made a commission? Shouldn't it be on paper? And lastly, doesn't this constitute fraud? They did make a commission. But we were told they did not.


Asked on 3/02/00, 6:12 am

1 Answer from Attorneys
Jeffrey W. Jones Jeffrey W. Jones, P.A.

Re: sale misrepresentation

Under Oregon law, an agent may act as a dual agent for a buyer and seller, but only if they disclose the dual agency to both buyer and seller. An agent of a principal (buyer or seller) must disclose all material facts relating to the agency. Failure to do so constitutes a breach the agent's fiduciary duty to the principal. Certainly, lying would constitute fraud. It does, however, seem odd that you had an agent working on a sale, but apparently you did not have a listing agreement with the agent. Under Oregon law, the agent has not right to a commission without a listing agreement. You probably have claims against the agent and its insurance carrier.

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Answered on 3/15/00, 3:56 pm


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