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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Real Property - Transactions

Date & Time
  • event Date

    Thursday, January 27, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE webinar will provide real estate counsel with practical guidance on negotiating broker agreements to clarify a broker's fiduciary duties and limit potential future liability. The panel will address how misrepresentations in broker agreements create risk and how to work with brokers to develop enforceable contracts.

Faculty

D. Keith B. Dunnagan
Managing Shareholder
BPE Law Group

Mr. Dunnagan’s clients largely consist of investors, developers, businesses, and professional services providers with business interests involving commercial and residential real estate, financing, and corporate entities. As the managing transactional attorney for the firm, his practice focuses on the routine business transactions of his clients involving business formations, corporate governance, financing, and real estate transactions. As a leading authority on real estate and finance matters, Mr. Dunnagan is regularly retained as a consultant or expert when property and financing issues overlap in litigation matters.

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Zachary D. Schorr
Lead Trial Attorney
Schorr Law, PC

Mr. Schorr is an experienced Los Angeles real estate attorney and litigator who enjoys the litigation process and trials. He initially gained his experience in law by working in a well-known national law firm, while later honing his skills at a well-respected real estate and entertainment boutique law firm. Mr. Schorr is a frequent lecturer on various areas of real estate law.

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Description

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.

Outline

  1. Broker agreements
    • Necessary provisions
      • Timing
      • Payment
      • Termination
    • Misrepresentations
    • Unlicensed practice of law
    • Reps and warranties
    • Indemnification
    • Conflicts of interest

Benefits

The panel will discuss these and other key topics:

  • What provisions should a broker agreement include?
  • How can a real estate broker agreement address the fiduciary duties a broker owes to the client?
  • What happens to the broker's fees if the closing fails to happen?
  • When should parties consider a dual agent broker, and how should the agreement protect against conflicts of interest?