Can real estate agents and bank be held liable for damages due to negligence?

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Can real estate agents and bank be held liable for damages due to negligence?

I’m the seller. 2 days from agreed closing day. My realtor has not been able to reach the buyers agent for a week. Not returning calls or emails. The buyer’s agent now states that her clients banker screwed up their mortgage. They wrote it as a conventional loan, as stated on the purchase agreement, bank will only do FHA. Which requires more inspections and weeks of delays. The buyer’s realtor admitted to knowing this for a week but we believe it to be longer. I have all ready made arrangements to shut of utilities the day of close, terminated security system and committed to renting a truck for the move. My loan is approved and on track, the people who own the house I’m buying are on track and approved AND the house they are buying. There are 3 households now involved in this known problem by the realtor and bank. Had the realtor admitted to the problems when first known, I could have made other plans to sell my current home.

Asked on May 30, 2018 under Real Estate Law, Wisconsin

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, you can't sue the buyer's agent for this:
1) The buyer's agent is your agent: they do not have a contractual or other duty to you, since you are their client. When there is no duty, there is no possibility of a lawsuit.
2) The buyer's agent is not responsible for how their client or the bank handled the loan--they had no role in that.
If the buyer cannot close when the contract calls for, however, you may be able to sue the buyer for "breach of contract" for any costs or losses you incur due to their breach or violation.


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