Commercial brokers bring together lessors and property owners. Even though their role is that of a middleman, they could end up with legal issues. They owe duties to their clients. In addition, clients must live up to their legal obligations. Here are some common disputes with commercial real estate brokers.
Breach of Fiduciary Duty
Real estate brokers have an obligation to act on behalf of someone else. They have the following duties:
- Loyalty to their client, putting their client’s interests first
- Confidentiality
- The duty to disclose all relevant and material information
The broker can be sued if they violate any of their obligations. The most common example of this is a claim that the broker had a conflict of interest.
Fee Disputes
Commercial brokers could end up suing their clients if they believe that they are owed money for their services. In some cases, they may make an introduction and then claim that their client ended up cutting them out or not paying the brokerage fee. Real estate owners may also dispute fees with a broker, arguing that they do not owe any money. In addition, the size of the brokerage fee could also be in dispute.
Breach of Contract
A brokerage contract may obligate the broker to do certain things to help make a transaction possible. Alternatively, the agreement could give the broker the right to an exclusive listing, and the owner is now trying to use another broker. The terms of the agreement between the client and broker could not be clear, or one party may think that the other did not follow their obligation.
Consult with Experienced Atlanta Commercial Real Estate Lawyers
If you are involved in a commercial real estate dispute, call an Atlanta commercial real estate attorney at Battleson Law PC at 470.398.1175 or contact us online to discuss your case.