Failure to Disclose “Known” Conditions
A buyer of a property sues the seller, the listing agent and the buyer’s agent for failure to disclose a crack in the foundation of the home. The buyer found the crack in the foundation when he was replacing the flooring in the home. The buyer alleges that the seller should have known the crack was in the foundation as the carpeting that had been in the home at the time of the sale had been replaced during the tenancy of the seller.

Failure to Disclose Pending Freeway Expansion
A Buyer sues a listing agent for failing to notify the Buyer of a proposed freeway on-ramp on land immediately fronting the property being sold. Generic disclosure was already made regarding freeway expansion, but the buyer alleges that the listing agent should have disclosed this information in the Transfer Disclosure Statement.

Breach of Fiduciary Duty
A buyer sues his agent alleging that he overpaid for the property he purchased. After the close of escrow, the buyer determined that he paid $15,000 more for the property he purchased compared to similar homes in his housing tract. The buyer alleged that his agent breached his fiduciary duty to the buyer to get the best pricing available. He further alleged that the agent failed to disclose the other “comparables” to him during the negotiation process.

Personal Injury/Privacy Liability
An outsider hacked into a REALTORS® computer system and stole the personal information of that REALTORS® employees and clients. The hacker then posted this information on the Internet. As a result, the REALTOR® was sued by many parties alleging failure to protect their information, privacy violations, etc. The REALTOR® paid large sums of money to resolve this situation. The costs included the notification and ongoing credit monitoring of all affected individuals as well as defense and indemnity costs related to the lawsuits.