Walking Away Scot-Free: Trust, Expert Advice, and Realtor Responsibility

Real Estate Law Journal, Vol. 40, p. 312, 2011

Arizona Legal Studies Discussion Paper No. 11-10

68 Pages Posted: 13 Mar 2011 Last revised: 16 Dec 2011

Brent T. White

University of Arizona - James E. Rogers College of Law

Date Written: December 15, 2011

Abstract

Real estate agents benefit from the trust associated with portraying themselves as real estate experts, yet are generally not legally responsible for the advice that they give. This lack of legal responsibility is at odds with psychological propensity of individuals to trust perceived experts. It also creates a genuine moral hazard, fueled the housing market bubble and contributed to the suffering of homeowners whose real estate agents encouraged them to buy as the market began to burst. This article proposes that real estate agents be required to accept legal responsibility for their advice or be required to represent themselves as mere salespersons.

Keywords: real estate, experts, trust, realtors

JEL Classification: K11, K13, K23

Suggested Citation

White, Brent T., Walking Away Scot-Free: Trust, Expert Advice, and Realtor Responsibility (December 15, 2011). Real Estate Law Journal, Vol. 40, p. 312, 2011; Arizona Legal Studies Discussion Paper No. 11-10. Available at SSRN: https://ssrn.com/abstract=1783050

Brent T. White (Contact Author)

University of Arizona - James E. Rogers College of Law ( email )

P.O. Box 210176
Tucson, AZ 85721-0176
United States

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