Agent & Broker Liability Attorneys, Kansas & Missouri

Many people are involved with selling a property, but two titles that have a significant impact are a broker and an agent. Understanding what each provides and where they are liable is essential in the home-buying process.

A Real Estate Agent

A real estate agent is commonly referred to as the salesperson for the property. They are responsible for answering questions on the home or property, reviewing real estate contracts, showcasing the property to prospective buyers, and providing all the necessary information about the sale. When specific duties are not done or completed, an agent could be liable for damages.

Agent Liabilities:

• Not informing the buyer of changes or damages.

• Using their position for personal gain, i.e., secret profits.

• Being irresponsible with the money given to them for the sale.

A Real Estate Broker

A broker can wear many hats during the purchase of a property. They might work closely with the administrative, supervisory, and technical sides of the role. Brokers are responsible for maintaining listings, drafting sale documents, negotiations, handling disputes, setting up walkthroughs, and many other duties. Brokers will often work above a real estate agent or alone.

Broker Liabilities:

• Not keeping buyer and seller information confidential.

• Being unclear about possible defects or damages.

• Breaching fiduciary duties laid out in the contract.

Frequently Asked Questions

1. What is “agent and broker liability” in a real estate context?

“Agent and broker liability” refers to the legal responsibility that a real estate agent or broker has toward their clients (and sometimes to other parties) when they provide services related to buying, selling, or leasing property. Liability arises when the agent or broker fails to meet professional standards — for example by misrepresenting material facts, failing to disclose defects, breaching fiduciary duty, or acting negligently.

Because real estate transactions involve many parties and complex legal and practical issues, an agent or broker’s mistake or misconduct can cause serious financial or legal harm — making liability a critical concern.

2. What duties do real estate agents and brokers owe their clients that, if breached, can lead to liability?

Agents and brokers generally owe clients a set of duties including loyalty, confidentiality, full disclosure of material facts, reasonable care and diligence, and honest dealing.

If an agent or broker fails to disclose known defects, provides misleading information, misstates property conditions, or neglects to perform due diligence (e.g., failing to verify critical information), they may be liable under claims such as negligence, misrepresentation, fraud, or breach of fiduciary duty.

In some cases, if they offer legal advice beyond their scope (for example, interpreting complicated contract or title issues), they may also be liable for unauthorized practice of law.

3.What are common mistakes or misconduct by agents or brokers that lead to liability claims?

Some of the most frequent issues include:

• Failure to disclose material facts or defects (e.g., structural problems, flood risk, property defects, or zoning issues)

• Misrepresentation or inaccurate statements about property condition, size, value, or other key attributes — whether intentional or negligent.

• Negligence or inadequate due diligence, such as failing to verify property data, failing to inform about restrictions or encumbrances, or mishandling paperwork or deadlines.

• Breach of fiduciary duty or conflicts of interest, like favoring one party over another, withholding commission disclosure, or providing unequal representation.

• Unauthorized practice of law, when agents or brokers give legal advice instead of referring clients to a qualified attorney.

These mistakes can lead to lawsuits, license revocation, financial loss, or deal cancellations.

4. Who can be held liable — the agent, the broker, or both?

Liability can fall on either the individual agent (salesperson), the supervising broker (or brokerage firm), or both — depending on the circumstances.

Because a supervising broker typically oversees and supervises the actions of sales agents, the brokerage firm can also be held responsible for misconduct, misrepresentation, or negligence committed by its agents. This is known as vicarious liability. 

Even if the broker personally did not commit the wrongdoing, liability may still attach if the agent was acting within the scope of their authority or under the broker’s supervision.

5. When should I consider hiring a real estate attorney instead of relying solely on an agent or broker — especially if I suspect liability issues?

You should consider hiring a real estate attorney when:

• The transaction involves unusually complex issues (title problems, environmental hazards, zoning or land-use restrictions, complicated financing, etc.).

• You suspect or discover that important disclosures were omitted, there are defects or property issues, or the information provided by the agent/broker seems inaccurate or misleading.

• There is a dispute, misrepresentation, or potential breach of duty or contract.

• You want legally enforceable protection, or you want to review contracts, disclosures, and terms with clear understanding of liability implications.

An attorney can help interpret and safeguard your rights in ways that a license-holding agent or broker may not — and can help you pursue legal recourse if liability arises.