In a light of an opinion of the Supreme Court of the United States, the United States Court of Appeals for the Ninth Circuit has considered once again whether a broker can be liable for violations of the Fair Housing Act (“Act”) based on the actions of his salespeople. Click here to read a summary of the earlier decisions in this case.
Glenn Archambault and Terri Magruder (“Buyers”), a husband and wife, submitted an offer (“Offer”) to purchase two parcels of land from Howard Ogier and Phyllis Ogier (“Sellers”). The two parcels were next to each other, one containing a home and the other barn. During the course of the transaction, the Buyers received a disclosure statement which stated that the Sellers knew of no defects on the property affecting the property’s value.
A Texas court has considered whether a listing broker could be liable for failing to disclose to the buyer that the seller had sued the previous owner for undisclosed defects on the property.
A New York court has considered whether an unlicensed consultant could recover a fee from a contract involving the sale of a country club.
John Segalla (“Seller”) entered into an agreement with Frank Vinchiarello (“Consultant”) wherein the Consultant would use his best efforts to secure a buyer for Segalla Country Club (“Club”) in return for a percentage of the sales price. The Club was part of 700 acres the Seller was interested in selling. The Consultant did not hold a real estate license.
An Alabama court has considered whether a lawsuit could proceed involving purchasers who learned six years after closing that the house they thought they had purchased and lived in for six years was not the actual house they had in fact purchased.
An Illinois court has considered whether a liquidated damages provision was enforceable in a listing agreement specifying that brokerage would receive a commission amount for all unsold units in condominium development if developer terminated listing agreement prior to expiration date.
Lawrence v. Courtyards at Deerwood Ass’n, Inc.: Fair Housing Lawsuit against Property Manager Dismissed
A federal court has considered whether a homeowner could maintain a lawsuit against property manager based on the federal Fair Housing Act (“Act”) for the property manager’s failure to protect the homeowner from an allegedly racially hostile atmosphere created by a neighbor.
Creating a circuit split between federal appellate courts, the Second Circuit has ruled that courts are required to defer to United States Department of Housing and Urban Development’s (“HUD”) interpretation of section 8(b) of the Real Estate Settlement Procedures Act (“RESPA”) regarding a lender’s mark-up of a third party’s fees when no additional services are provided by lender.
A California court has considered whether a broker could successfully bring a lawsuit against seller’s husband for damages because of the husband’s interference in the contractual negotiations.
Next Generation Realty, Inc., v. Iowa Realty Co., Inc.: Antitrust Allegations against Association Rejected
In a case previously summarized in The Letter of the Law, Iowa’s highest court has affirmed a lower court’s judgment in favor of the Des Moines Area Association of REALTORS® (“Association”) and its ability to enforce its rules. Click here to read the prior summary.