Although this case is from North Carolina, it provides some interesting points concerning fiduciary duties, purchase contracts and buyer representation agreements.

Buyer engaged a real estate broker to assist her in purchasing a home. Buyer signed an exclusive buyer agency agreement, which stated in part “…Buyer is advised to seek other professional advice in matters of law, taxation, financing, insurance, surveying, wood-destroying insect infestation, structural soundness, engineering, and other matters pertaining to any proposed transaction…” Buyer signed, but didn’t read, a purchase contract for a newly constructed home. After the closing, Buyer discovered defects requiring repairs estimated at approximately $84,000.00. Buyer sued all parties involved, including her real estate agent, alleging a breach of fiduciary duty.

Takeaways:

Buyer admitted that she did not discuss any of the legal terms of the contract with her broker and that her focus was on the interior changes to the home. Court found that the buyer agency agreement advised the buyer to seek other professional advice in addition to the services rendered by the agent, thus the broker’s duty to advise the Buyer to seek legal counsel was satisfied through the buyer agency agreement.