Can a realtor buy their clients’ houses?

I would like to know if I can take legal actions against a realtor. The house was listing and when I call the realtor told me that he bought the house already. That’s unethical in my opinion and should not be allowed.

Asked on July 7, 2016 under Real Estate Law, Texas

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

It's not unethical for the realtor to purchase the house unless they do so in a way that defrauds their client.  If the realtor has deprived you of a profit, forged your signature, or otherwise violated their contractual agreement with you, then it may not only be unethical, but also illegal.  Have a real estate attorney review your contract with the realtor and the purchase documents.  From there, you can decide exactly which remedy (fraud or contractual) you are able to pursue.


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