Sold, Laguna Niguel Home

We are pleased to announce the successful sale of this Laguna Niguel home. Here's the story about the sale in our client's own words:

I want to pass along our sincere thanks for a job well done on the sale of our condo at 27314 Avenida De La Plata in Laguna Niguel. You not only secured us a very fast and efficient sale, but you were a pleasure to work with!

You can be assured that both Devonee and I will recommend you and your team to everyone we know for their real estate needs. We wish you the very best in the future and please keep in touch!

- Mr. David Foster

Bryan Zuetel, Esq. in U.S. News and World Report

Bryan Zuetel, Esq. was recently quoted in U.S. News and World Report,  a national news site, on the topic of choosing a real estate agent. Here is his excerpt of the article Bryan was quoted in:

"In California, the requirements for a real estate salesperson's license are very low, basically, three classes and a test," says Bryan Zuetel, a real estate attorney and broker in Orange County, California.

"Almost any agent can get a listing, enter the property into the (multiple listing service), create some flyers, hold open houses and fill in blanks on the contract forms," Zuetel says. "However, most agents do not understand, but should understand, the complex contract terms, implications of an unhappy party in the transaction, legal requirements for the numerous disclosures, appropriate negotiations during the escrow period, conflict resolution via mediation or arbitration, and the remedies under the contract."

Here is a link to the full article about Choosing a Real Estate Agent.

For more information on the benefits and protection of having a Real Estate Attorney-Broker-Realtor in one click here.

Sold, Spanish Luxury, La Cañada Flintridge

We are pleased to announce the successful sale of this magnificent La Canada-Flintridge luxury estate.  Here’s the story in our buyer’s own words:

After one year of working with Bryan to purchase this luxury estate, I again highly recommend him and Esquire Real Estate.  We had months of negotiations, multiple deadlines, and even more negotiating, even up to the last day of the transaction.  I wanted to close the deal by Christmas, and Bryan made it happen.  I would have had to hire a separate attorney to review all of my documents, but since Bryan is a real estate attorney, he reviewed every detail with a fine tooth comb.  I’ve worked with Bryan before to buy commercial real estate in Los Angeles, and I knew he could deliver just like he did.  I highly recommend him.

- Dr. S

Sold, Mission Viejo Home

We are pleased to announce the successful sale of this Mission Viejo home. Here's the story about the sale in our client's own words:

As a first time home buyer, I cannot imagine going through this process without Esquire Real Estate. So many well-meaning people offer their advice during a time of really critical decision-making and it's easy to fall into that apprehension about who to trust. ERE removes all the uncertainty with their professionalism, extensive expertise and above-and-beyond responsiveness and attention to detail. They also offered me really practical advice that served me well on so many occasions. From the very beginning of the home search to escrow close, ERE represented me and my needs with complete mastery. We ended up on a really complicated short sale property and ERE protected me at every turn and I was able to move through a process that had significant variables from start to finish with complete confidence in Bryan's legal and real estate expertise. I love my home and could not recommend ERE more highly.

- Erica M.

Unanimous Decision against Dual Agency

On Monday, the California Supreme Court dealt a severe blow to dual agency in California by confirming that dual agents are required to act as fiduciaries to both the buyer and the seller.  Although dual agency remains legally permissible, buyers and sellers should be advised to refuse to compromise with dual agents, which do not protect either buyer or seller and only benefit the conflicted broker. 

In the case of Horiike v. Coldwell Banker (click here to read the opinion), the California Supreme Court unanimously held that a real estate salesperson owes a fiduciary duty to both the buyer and seller, where the broker is dually representing the buyer and seller ( dual agency).  Since a salesperson in California must be licensed under a broker, even a transaction with two different salespersons but one broker dually representing the buyer and seller will be considered dual agency.  In other words, because the salesperson is licensed under the broker, the salesperson functions on behalf of the broker in the real property transaction.   

Being licensed under the dual-agent broker, the salesperson owes a duty to the buyer and seller equivalent to the duty of disclosure owed by the broker.  Thus, the salesperson under the broker acting as a dual agent owes both the buyer and seller “a duty to learn and disclose all information materially affecting the value or desirability of the property.”  This duty is especially beneficial to the buyer in a situation similar to the Horiike facts, where the listing agent had knowledge of important facts regarding the square footage of the home that the listing agent did not share with the buyer. 

The California Supreme Court also reviewed the applicable agency and disclosure statutes.  A broker, with the consent of the parties after full disclosure, may act as a dual agent and will owe fiduciary duties to both the buyer and seller.  (Civil Code §§ 2079.14, 2079.16)  Thus, if the broker acts as the dual agent in the transaction, all real estate salespersons licensed under that broker and involved in the transaction owe a fiduciary duty to both the buyer and seller.  Although these statutes have been the law for decades, the California Supreme Court’s opinion confirms the duties owed by the dual agent.

In discussing the conflicts inherent in dual agency, the California Supreme Court highlighted Coldwell Banker’s admissions that dual agency does not provide the clients with the “undivided loyalty of an exclusive salesperson.”  Further, Coldwell Bank confirmed that in dual agency, “salespersons would have a duty to harm their original client by disclosing to the other side confidential information about the client’s motivations or the salesperson’s beliefs.”  Yes, you read that right!  Coldwell Banker admitted that dual agents cannot provide “undivided loyalty” to their clients and might actually “harm their original client” by disclosing confidential information.  In the words of Coldwell Banker elsewhere in the opinion, dual agency involves inherently conflicting interests of buyers and sellers.

So, why do sellers and buyers agree to dual agency?  There is no requirement that sellers or buyers agree to dual agency in which they will not have the “undivided loyalty of an exclusive salesperson.”  Sellers and buyers can refuse to retain salespersons who “would have a duty to harm” the principals by disclosing confidential information. 

Put simply, buyers and sellers should refuse to agree to dual agency.  A dual agent does not adequately, competently, or loyally protect either buyer or seller.  Instead, buyers and sellers should be separately represented by competent and loyal brokers who will vigorously and professionally represent each client’s particular interests.  Just say “No” to dual agency!  For more information, check out our past blog postings:

http://www.esquire-re.com/blog/2016/9/8/supreme-court-signaling-end-compromised-agents

http://www.esquire-re.com/blog/2016/4/1/protect-yourself-just-say-no

Although this opinion from the California Supreme Court presents a great victory for consumers, specifically the buyers and sellers of real estate, we can expect the Realtor associations to begin lobbying the Legislature to nullify this opinion and adopt new legislation re-affirming the misguided concept of dual agency. 

We will continue relaying the news on this matter as it unfolds.