Legal Question in Real Estate Law in California

Realtor Ethical Behavior

Hi. We submitted an offer on a townhome which included a pre-approval letter from our lender. The seller's realtor phoned our lender and asked personal questions including ''what is the full amount [the buyer] could be qualified for'' and ''will you (the lender) provide a loan with 10% down terms to these people?''

We gave no authorization for this realtor to contact our lender. Speaking emotionally, we feel this is a tremendous invasion of privacy; speaking factually, we wonder: is the behavior potentially a breach of any civil statue?

Many thanks in advance for your thoughts.


Asked on 3/12/09, 11:46 am

1 Answer from Attorneys

David Gibbs The Gibbs Law Firm, APC

Re: Realtor Ethical Behavior

Probably not - did the Realtor have you sign any sort of buyer-representation agreement? In any case, you need to carefully read the offer you signed, as well as any buyer-representation agreement you signed with the Realtor. I'm almost certain that in one of those documents, you gave the Realtor permission to contact your lender and discuss your loan application. It is generally necessary for your Realtor to have direct access to your lender to review status, confirm certain events (such as application submission, pre-approval, conditional approval, funding committments, etc...). I'm assuming you signed the standard C.A.R. forms, and if so, I'm almost certain you gave the Realtor permission. If there is nothing in anything you signed giving the Realtor permission, then I'm not aware of any statute she might have violated.

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Answered on 3/12/09, 1:46 pm


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