Real Estate Fiduciary Audit™
When is a Real Estate Agent or Broker a fiduciary and liable for investors’ losses?
A prominent legal expert on Fiduciary Duty states, “fiduciary duty is an extremely broad concept and likely to cause liability to be found in new situations”
Real Estate Fiduciary Audit™when real estate agents, dual agents or brokers or developers handle transactions of real estate property knowing it is not a primary residence but an investment asset owned by a trust, partnership, LLP, LLC, ERISA Qualified Pension Retirement benefit plan, Profit Sharing, Money Purchase, Keogh Plan, IRA Rollover, (individual Retirement Account Arrangement) or SEP (self employed plan) – IRA.
Real Estate Fiduciary Audit™ also includes a Mortgage – backed securitization, PSA audit.
Financial institutions’ (approximately two dozen) connections, if any, to the Shadow Banking System before and after 2008 Financial Crisis are analyzed.
Real estate investments may fall under the Prudent Investor Act or ERISA when a Pension plan, trust, LLC LLP or FLP is effectively the “investor.”
Real Estate Fiduciary Audit™ reviews the Agent’s, Broker’s and or Developer’s connections and potential fiduciary duty owed to the investor, in addition to disclosures of property defects. Typical investors include LLPs, LLCs, FLPs, partnerships, trusts or pension benefit plans under ERISA.
A link to Courtinfo.ca.gov includes information about fiduciary duty of Real Estate agents, Stockbrokers and Escrow Holders. Recently, Mr Kimmons writes that the acronym OLDCAR outlines a Real Estate Agent’s fiduciary duty owed to investors.
CNN reports, in some cities, home prices to take decades to recover and Bloomberg reports that the Massachusetts Supreme Judicial Court has leveled a blow to mortgage note transfers and assignments in blank. UPDATE: Home prices, courtesy of $3T of support from the Federal Reserve have recovered but remain 27% below their peak in 2006, and MERS and MERS members have largely avoided liability, successfully foreclosed nor suffered significant fines, if any from failing to file complete, accurate, timely or genuine note transfer or foreclosure documents with country recorders. Some states like New York, now require attorneys to verify foreclosure documents they file.
Investment real estate losses suffered by apartment, multi-family, rental property, TIC or LP investors’ factors require investigation into the layers and parties to those transactions including appraisers, mortgage brokers, real estate agents, escrow and title companies and others. Especially deals involving affiliates, related parties, family members and trusts, pension or retirement plans.
In nearly every dispute whether trust or non-trust account, IRA, ERISA pension retirement benefit plan, charity, non-profit, foundation or endowment account, at the outset parties form a trusting relationship, promises are made, expectations are created, reliance and often complacency can take root, disappointments occur, communication wanes, account values continue to suffer, risks increase, prudence gaps manifest then arbitration claims or lawsuits are filed.
It’s best if we can be retained prior to the establishment of the new account (or new advisory) relationship to help prevent these types of situations When lawsuits or claims are contemplated we prefer to be involved at the earliest opportunity prior to filing.
For concerns related to breach of fiduciary duty, self-dealing, conflict of interest or malfeasance or violations of FINRA or SEC securit
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