Broker Disputes and Resolution: A Conversation with Real Estate Attorney Nicholas Kritikos (Video)
Introduction of Real Estate Attorney Nicholas Kritikos
hector introduced Nicholas Kritikos, an attorney specializing in real estate, particularly in contracts, procurement, costs, and disclosure issues. Nicholas shared his journey into the legal profession, noting his 2015 graduation from California Western School of Law in San Diego, his return to the Inland Empire after practicing law there until 2022, and his eventual establishment of his own firm. He also mentioned his focus on real estate disputes, including those related to the California Association of Realtors, and his transition into specializing in this field through practical experience.
Broker Disputes and Resolution Processes
Nicholas and hector discussed their experiences in dealing with broker to broker disputes. They noted that each local association has its own process, and that the California Association of Realtors has established a dispute resolution process. The discussion then shifted to procuring cause issues, which Nicholas explained often arise from client interactions and are best resolved through mediation. He provided a detailed account of the arbitration process, emphasizing the importance of resolving disputes through mediation as arbitrators are often volunteers and not legal professionals. hector asked about the escalation process if mediation fails and mentioned a large case recently settled involving several real estate companies.
Real Estate Association Rules Discussed
Nicholas and hector discussed the varying rules and guidelines of real estate associations, with Nicholas highlighting that the California Association of Realtors (C.A.R.) and Nar have their own sets of regulations. Nicholas noted that while some companies are breaking away from Nar, the practical implications of this are unclear. He also clarified that rules regarding procuring cause issues, arbitration, and mediation, which are typically followed by brokers, largely remain the same under Nar. hector agreed, adding that if a contract dispute arose and one party was not part of Nar, the rules would still apply if they were a licensed agent under C.A.R. The discussion concluded with Nicholas explaining that brokers and agents in California have agreed to be bound by the California rules of ethics and arbitration.
Agent Disclosure and Non-Disclosure Issues
Nicholas discussed the challenges that can arise when a buyer's agent assumes they've secured a property only to lose the buyer to another agent. He emphasized the importance of agents over-disclosing defects to avoid disputes and maintain objectivity. He and hector discussed the significance of non-disclosure issues in contracts, particularly in real estate, noting these disputes often arise post-sale. They discussed the difficulty in proving the seller knew of the defect, and the importance of agents disclosing any known issues. hector asked about the involvement of larger companies in such cases, but Nicholas clarified it depends on evidence of wrongdoing. Finally, Nicholas dismissed the notion that having a large policy makes one a bigger target for lawsuits.
Real Estate Disclosure and Reliability
Nicholas and hector discussed the disclosure of property issues in real estate transactions. Nicholas stressed the importance of avoiding qualitative language when describing problems and advised sticking with the facts. hector questioned whether having a real estate agent who is also a contractor or holds a general contractor's license makes them more reliable. Nicholas clarified that such knowledge could make an agent more knowledgeable but didn't necessarily affect their fiduciary duty to their client. They concluded by discussing the complexities of dual agency in real estate transactions, acknowledging the potential for disputes or lawsuits when an agent represents both the buyer and seller, and emphasizing the need for agents to disclose as much information as possible in such situations.
Mediation and Contract Changes Discussed
hector and Nicholas discussed the mediation and arbitration processes within the car Forum. Nicholas explained that any disputes must go through mediation, with certain exceptions, and emphasized the importance of carefully reviewing digital signing documents with clients. He also highlighted the complexity of contracts, noting the changes made in 2021 to make them more user-friendly, and the possibility of altering contract forms via addendums, as long as both sides agree to the changes.
EMD and Real Estate Mediation Discussed
hector and Nicholas discussed the concept of damages in real estate transactions, particularly the Earnest Money Deposit (EMD) that comes into play during the escrow process before closing. Nicholas explained that the EMD is usually involved when a buyer backs out after waiving their contingencies, leading to disputes. In such cases, parties go to mediation to reach a resolution, as both the buyer and the seller want to avoid having their money tied up in escrow for a long period. Nicholas also provided detailed information about his practice areas and how to contact her through her website, kritikoslawm.com, and her locations in Upland, San Diego, and involvement in Los Angeles County. She concluded by expressing availability for a phone call to discuss any issues.
