Legal Question in Real Estate Law in Virginia

Re: Legal liability of a real estate agent

As you can imagine it is very difficult to render an opinion having only an extremely limited understanding of the entire situation and the type, quality and amount of evidence involved. Real estate matters revolve around hundreds of written and oral communications that are not very well documented. You wrote that the realtor believed that the "silent partner" was indeed financing a large amount of the purchase. When the agent testifies... he/she will simply be able to tell what the "silent partner" conveyed to him/her.. nothing else. This is simply a testimony.. it will not make or break the case. As far as the gift is concerned: the couple should easily be able to show "how little" of a gift it was.. there must have been some paper trail. The core issue of a gift versus an investment depends on various elements: did the investor clearly convey, whether in writing or orally, the intention of investing in this parcel of land? Did the relative clearly "gifted" the money? On what account? Why? How? When? Is there anything in writing at all of any sort... right before, after or even way back regarding possibly doing business together? Assuming again that there is no lending issue (gift letter and so forth), the fact that a deed was drawn up and accepted without the silent partner vested interest in it would not be in itself indicative of a lack of financial interest in the property: That "silent investor" may have for example some other document supporting his/her claim.. a private note and a deed of trust never put on record is what comes to mind right away!! Given the complexity of the case, I doubt that the couple is doing this without the help of counsel.... if they do not have an attorney, I strongly suggest that they immediately seek counsel. Your question then goes to the legal liability of a real estate agent.... I do not believe that the agent is liable for the financial agreement between a buyer and someone else. If a loan or a financial contingency and a request for evidence of funds was involved, and the agent materially worked to hide certain financial arrangements, then possibly there might be an issue with transparency and lack of disclosure... but I seriously doubt that this would then lead to "liability" in this specific case. Even from an ethical stand point I don't believe that the agent is liable. the agent (actually the real estate agency broker) has an agency relationship with their clients only (which are named in the contract!!! and only those). I guess my question would be? If you think that the agent is liable... what would be the consequence of that liability? How would the agent make things right for a plaintiff? What would you have wanted that agent to do? In summation by the few elements that you have presented, I do not believe that the agent is liable.

Sincerely,