What is my recourse regarding the breach of personal information shared with a potential buyer?

I am selling a home that is seller financed with balloon payment coming due. I recently found

out from my real estate agent that the individual holding the note on my seller financed loan disclosed to potential buyers that he held the note and that the house would be available for sale after we moved out. Meaning he would call the note and list the house himself. From what I understand this is a breach of confidential information that potentially cost us a buyer who thinks he can get the home for less after we move out. I need legal advice on how to approach this situation. This individual who holds the note has had multiple contact with interested buyers for our home and we have no idea how many people he has shared our personal information with.

Asked on September 13, 2017 under Real Estate Law, Arizona

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

It is not confidential if you have a note with private individual (who is not subject to banking regulations, since he is a private person, not a bank), unless he signed a confidentiality or non-disclosure agreement. In the absence of such an agreement, any private person can disclose anything they personally know to anyone else.


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