The real estate brokerage industry in the United States has a significant liability exposure problem. The liability exposure arises from both the application of agency law principles and judicially imposed duties regarding treatment of parties opposite a broker's principal. If you think the foregoing characterization is extreme, examine at least the evidence presented here and then draw your own conclusions. The facts are convincing that the brokerage industry faces substantial problems in the area of agency affecting not only financial liability, but also public confidence. The intent of this article is to carefully identify the problems, marshal the facts, and propose a solution to avoid further dislocations in the industry.
H. Glenn Boggs,
Agency Law and Real Estate Brokerage,
3 U. Miami Bus. L. Rev.
Available at: http://repository.law.miami.edu/umblr/vol3/iss1/2