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Product Liability Issues in Real Estate Brokerage

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Author Info
Thomas Potter () (Department of Finance College of Business and Public Administration University of North Dakota Grand Forks, North Dakota 58202)
Theron R. Nelson () (Department of Finance College of Business and Public Administration University of North Dakota Grand Forks, North Dakota 58202)
Susan Logan Nelson () (Department of Marketing College of Business and Public Administration University of North Dakota Grand Forks, North Dakota 58202)
Abstract

The legal environment for real estate brokers is moving inexorably toward the doctrine of strict liability in a product liability context. The agency relationship model currently popular in real estate brokerage may not be able to withstand this threat. A recommendation is made that the industry move toward a market-making role which lies outside the chain of distribution of the real estate product. By moving out of the distribution channel, brokers may be able to revert to a "due care" standard performance.

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File URL: http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol06n01/v06p087.pdf
File Format: application/pdf
File Function: Full text
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Publisher Info
Article provided by American Real Estate Society in its journal Journal of Real Estate Research.

Volume (Year): 6 (1991)
Issue (Month): 1 ()
Pages: 87-98
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:jre:issued:v:6:n:1:1991:p:87-98

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Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
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Web page: http://www.aresnet.org/

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Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
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Web: http://aux.zicklin.baruch.cuny.edu/jrer/about/get.htm

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Find related papers by JEL classification:
L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

Cited by:
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  1. John D. Benjamin & G. Donald Jud & G. Stacy Sirmans, 2000. "What Do We Know About Real Estate Brokerage?," Journal of Real Estate Research, American Real Estate Society, vol. 20(1), pages 5-30. [Downloadable!]
  2. Roy T. Black & Hugh O. Nourse, 1995. "The Effect of Different Brokerage Modes on Closing Costs and House Prices," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 87-98. [Downloadable!]
  3. John D. Benjamin & G. Donald Jud & G. Stacy Sirmans, 2000. "Real Estate Brokerage and the Hosting Market: An Annotated Bibliography," Journal of Real Estate Research, American Real Estate Society, vol. 20(1), pages 217-278. [Downloadable!]
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This page was last updated on 2009-11-6.


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