When buying a commercial real estate property, the brokerage agreement is between the buyer or seller and the broker. The broker is an agent of the buyer or seller and, as an agent, has fiduciary duties to the client. Sometimes the broker could act as a dual agent, which creates potential conflicts of interest. Real estate counsel can serve to ensure the broker will represent a client's interest in a transaction by crafting a detailed agreement that meets those needs.
Most states recognize that real estate brokers occupy a position of trust through a fiduciary relationship with the parties they represent. A fiduciary relationship brings with it requirements of fidelity and good faith. These issues are often raised in claims that an agent has acted as a real estate broker and a buyer (or seller) of a property. It is a potentially dangerous position for an agent to occupy.
The benefit of the brokerage agreement is clear communication between the buyer (or seller) and the broker. It is an excellent opportunity to discuss who will perform what tasks. At a minimum, the best agreements shall establish: (1) the timing for completing tasks, (2) when and how the broker is paid, (3) how to handle broker expenses, and (4) when the broker's representation ends.
The broker agreement should limit liability and include indemnification language that protects the broker from the client's acts and ensures that clients are not held responsible for the broker's act. Because this is an agency relationship, the client must communicate to the broker what representations or statements the broker can make on behalf of the buyer or seller. If a dual agent situation cannot be avoided, the issues of potential conflicts of interest should be addressed in the agreement.
Listen as our expert panel discusses what constitutes an enforceable broker agreement, clarifies provisions to establish clear fiduciary duties, and outlines how to avoid conflicts of interest while limiting potential liability for the acts of others.
According to an American Health Care Association’s January 2022 jobs report, senior living communities have lost nearly 238,000 employees 15 percent of the industry’s total workforce since the start of the pandemic.
Unfortunately, hiring and retaining qualified caregivers, is just one of many challenges seniors housing operators are facing. The rising cost of healthcare benefits, sustaining employee morale and creating HR policies that allow for more workplace flexibility are industry-wide hurdles bedeviling operators.
Given this landscape, how can senior living operators create the “right work environment” one that promotes employee satisfaction, delivers best-in-class resident care and drives occupancy?
Find out May 24th during a webinar titled “How to Tackle the Top Workforce Issues Facing Senior Living Communities.”
This live broadcast is scheduled from 2:00-3:00 pm EDT on Tuesday, May 24. Seniors Housing Business is the webinar host and Paychex is sponsoring the webinar.
This webinar on climate risk in real estate presents Four Twenty Seven and GeoPhy’s analysis of exposure to physical climate hazards in global real estate investment trusts (REITs). The presentations includes key findings from the white paper, Climate Risk, Real Estate, and the Bottom Line and a discussion of how physical climate data is leveraged in financial risk reporting for the real estate sector.
This topic will prepare real estate attorneys to meet their ethical obligations in the modern world. What are the ethical boundaries for a real estate attorney in negotiating a transaction? What steps should be taken to safeguard our client's information in our ever more security and privacy conscious world? How can a real estate attorney effectively provide counsel to a budding marijuana industry client? We will explore these topics and dissect the effects of technology on our obligations to practice law ethically. After this information, attorneys should feel well equipped to continue ethically practicing where real estate and the law intersect.