Campbell & Associates Law Firm PC.

Real Estate Agent Liability

Considering that a home is the most important purchase many people make during their lifetimes, it is not surprising that the job of a real estate agent is highly regulated to protect the public. Violations of Texas Real Estate Commission regulations or common law agency principles can mean serious problems for real estate agent liability. It is critical to understand what your duties are, so you can avoid lawsuits, withheld commissions, or other issues with disgruntled clients. Consult with an experienced Texas real estate liability attorney regarding some of the more common claims.

Unauthorized Practice of Law

It can be tempting to keep attorneys out of the real estate transaction process, but it is a mistake to tread into the area of providing legal advice. Document preparation, drafting, and review is the province of lawyers who are trained in the intricacies of real estate law. To avoid allegations of unauthorized practice of law, consider the types of services you offer, and the rights and obligations of your client. If an attorney would charge for the support you are providing, it is wise to steer clear.

Breach of Fiduciary Duty

As a real estate agent in Texas, you have certain fiduciary responsibilities regarding the parties you represent. Since you will almost always act for the seller of property, you owe that party the highest duties of loyalty and good faith. You risk serious consequences if your actions stray into the area of representing the buyer in a real estate transaction, such as by offering advice on the purchase price. Your fiduciary duty is to your client, not the party on the other side of the negotiating table.


Real estate agent liability for negligence often arises in the context of business properties, where you make statements about the location’s income potential, condition, or size. You could be liable for negligence if you make a careless remark that you should have known was not true. A business owner is likely to take action if profits are hit by incorrect statements and, when negligence is the core issue, your innocent intent in making the representations is not a factor.

Talk to a Skilled Texas Real Estate Agent Liability Attorney

For more information on your legal options related to real estate agent liability in Texas, please contact the Campbell & Associates Law Firm PC. We can schedule a consultation to review your circumstances at our convenient Dallas, TX location.