Realtor Misconduct Legal Options

Summary

The user suspects their realtor and mortgage officer of manipulation and unethical behavior, including insisting on a specific appraiser for their property. They have incurred financial losses due to multiple appraisals and are considering legal action. The user is advised that in Texas, real estate professionals must adhere to honesty, integrity, and full disclosure of conflicts of interest. To claim damages, they must show actual financial loss. Pain and suffering are typically not awarded in real estate disputes. The user is also informed about the possibility of disputing an appraisal if they believe its inaccurate.

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I am wondering if I have a case against my Realtor and Mortgage officer..They have been consistently leading me on about the possibilities in closing dates. Going as far as hiring someone they know as an appraiser for a property that I'm going to sell in order to purchase the new property. I feel like they're manipulating the system in order to benefit them.
What state are you located in, Victor? This will help me provide the most accurate information regarding real estate laws in your area.
texas
What specific actions have they taken that you believe are manipulative or unethical?
They requested an appraisal, which was assigned to an appraiser they did not like. Requested another appraisal and it was assigned to the same appraiser they didn't like, And no they've requested a third a appraiser and by some miracle were able to have the Loan officer from the lending company request the specific appraiser they want in order to appraise the property at the value they need.
What evidence do you have to support your claim of manipulation and unethical behavior?

In Texas, real estate professionals must adhere to:
- Honesty and integrity in all dealings
- Full disclosure of conflicts of interest.
Text messages stating the appraiser it was first assigned to was "no good" "cancel the appraisal" and additional texts stating "we need to get danny as the appraiser"
What is the name of the real estate agency and the mortgage company involved in your case?
Why does that matter? Can I remain anonymous?
Yes, you can remain anonymous. Do you have any legal documents related to this transaction? It's important to review them for any potential misconduct.
Yes, emails..my question is, do I have a case for any type of money gain for pain and suffering that my family have gone through throughout this.
What financial losses have you incurred due to this situation? In Texas, to claim damages, you must show actual financial loss. Pain and suffering are typically not awarded in real estate disputes.
Earnest money $*,*.* , Appraisal fees $*, Additional appraisals $*
Have you tried to recover these costs from the real estate agency or mortgage company? In Texas, you may be able to recover these costs if you can prove they acted unethically.
Not yet, the deal has yet to be declined or denied. I am simply preparing myself.
What steps have you taken so far to address this issue with the real estate agency or mortgage company?

In Texas, it's recommended to first address the issue directly with the parties involved before escalating to legal action.
None, still hopeful my loan is funded and I can purchase the home. The appraisal hasn't happened for the home to be appraised at $255k yet.
What is the timeline of these events and when is the closing date for your new property?
Sep 01st now, it was amended. The original closing date was Aug 25th
What is the name of the appraiser they are insisting on? This could be important in determining if there's a conflict of interest.
I'd like to remain anonymous
Understood. Can you tell me if you've signed any agreement or contract with the realtor or mortgage officer?
Just disclosure agreements for the loan processing and contract written up by the realtor.
What specific terms are outlined in the disclosure agreements and the contract you signed with the realtor?
I wish I could upload the information to you.
What is the general content of the disclosure agreements and the contract? Any specific clauses that you think might be relevant to your situation?
It says "This form is a statement of final loan terms and closing costs. Compare this document with your loan estimate"
What is the discrepancy between your loan estimate and the final loan terms and closing costs?
I can't say for sure if I spot any differences.
What is the name of the court nearest to you in Texas? This information will help me provide you with the contact details of the court in case you decide to take legal action.
I am currently in San Antonio, Texas. They are based out of Laredo, Texas.
What is the nature of the relationship between the realtor, mortgage officer, and the appraiser they are insisting on?
Business acquaintances. I believe they've just worked together in the past.
What specific benefits do you believe the realtor, mortgage officer, and appraiser are gaining from this situation?
Closing a deal, Helping me out, going above and beyond to try to get me and my family a home. I've been searching for a home since March this year. At first the mortgage officer had approved us for a loan and when the time came to fund, he stated the Mortgage rates had gone up and was unable to get us funded..so we lost *-3 months in that endeavor.
What actions have you taken since the mortgage officer informed you about the increased mortgage rates?

In Texas, mortgage rates can fluctuate until the rate is locked in. It's important to have a rate lock agreement in writing.
Improved my credit score to better my options, decided not to go with DPA because they wouldn't approve my DPA. So I'm paying the down payment out of pocket. I have since bettered my credit score and have saved enough to cover the down payment. Which leads us to my current scenario.
What actions have the realtor and mortgage officer taken since you improved your credit score and decided to pay the down payment out of pocket?
I'd like to think they've done more than they should be able to.
What specific actions have they taken that you believe are beyond their professional boundaries?
Assigning a specific appraiser. Communicating directly with underwriters to coerce them to approve my loan.
What evidence do you have of them communicating directly with underwriters to coerce them to approve your loan?
Emails, screenshots of text messages.
What is the content of these emails and text messages?
"I am speaking to the underwriter now and explaining the situation"
What is the content of the explanation they are giving to the underwriter?
He did not tell me that.
What was the outcome of the conversation between the mortgage officer and the underwriter?
The process moved a little further.
What is the current status of your loan application and the property purchase?
Awaiting the appraisal to be done and my property that I'm selling to be appraised at $255k
What is the estimated value of your property according to the market, and how does it compare to the $255k appraisal they are aiming for?
The last appraisal that was done came in at $238k. They believe they've provided enough comparable data to bring the property to be appraised at $255K
What is the reason given by the realtor and mortgage officer for insisting on a higher appraisal value?
They stated that the lender would not approve my loan if I was not in *% equity on the current property I have.
What is the current equity you have in your property? In Texas, lenders typically require a minimum of *% equity for a home equity loan.
Estimated equity percentage *%
What is the reason for the discrepancy between the estimated equity percentage and the lender's requirement?
No reason given..They just under appraised it.
What steps have you taken to dispute the under-appraisal of your property?

In Texas, you can challenge an appraisal if you believe it's inaccurate. This usually involves providing comparable sales data to support your claim.
They have taken those steps in providing comparable data to bring the property to $255k. However the appraiser still didn't appraise it at that value and appraised it at $238K. Which is why, they've insisted in acquiring an appraiser of their choosing.
What is the name of the appraiser they are insisting on? This information can help determine if there's a potential conflict of interest.
I can not state that.
What is the current status of your loan application and the property purchase?
Pending , awaiting the outcome of the appraisal to be done tomorrow.
What is the estimated value of the property you are planning to purchase and how does it compare to the appraisal value?
The property I'm purchasing is for $249k
What is the appraised value of the property you are planning to purchase?
$260k.
What is the reason for the discrepancy between the purchase price and the appraised value of the property you are planning to buy?
I don't know.
I dont know.
What is the timeline for the appraisal to be completed and for you to receive the results?
Appraisal performed tomorrow, completed and submitted three days after that
What actions do you plan to take if the appraisal does not meet the required value? In Texas, you can dispute an appraisal if you believe it's inaccurate. This usually involves providing comparable sales data to support your claim.
Sue.
What specific damages are you planning to claim in your lawsuit?
Earnest money and all associated fees, appraisal fees, pain and suffering for dealing with this issue since March.
What evidence do you have to support your claim for pain and suffering? In Texas, these claims are typically difficult to prove in real estate disputes.
I moved everything out of my home at their requests to prepare the home we're selling/renting. My daughters have not been enrolled in school because we don't know yet where we'll be. I have been alone in another city, because i do not have a home for my family yet.
What steps have you taken to mitigate these damages, such as finding temporary housing or enrolling your daughters in a temporary school?
We've attempted to enroll them in online classes, that outcome is still pending. I've been staying with a family friend willing to help us out.
What is the current status of your daughters' enrollment in online classes and your living situation with your family friend?
Their enrollment has not been accepted yet, and I am still living with my friend.
What is the reason given for your daughters' enrollment not being accepted yet?
We don't have a definite address because we don't have a home.
We do not have a definite address because we do not have a home.
The reason given is that we don't have a physical address yet.
What was the question?
Hello.
What is the current status of your property sale and the purchase of the new property?
I believe you've lost track of our conversation.
What is the current status of the appraisal for the property you're selling?