Episode Details
Back to Episodes5 Builder Traps That Expose Buyer Agents to Lawsuits and License Loss
Description
Builders are shifting legal risk directly onto buyer agents — and most agents don't see it coming until it's too late. In this episode, real estate attorney and SC Real Estate Commissioner Gary Pickren breaks down five builder practices that create serious liability for buyer agents and brokers in charge.
What's covered:
- Builder bonuses and commission steering — why that $10,000 check could cost you your license
- Escalating volume incentives and why every client in your pipeline is now at risk
- The builder compensation agreement designed to override your buyer agency agreement (and why it may violate SC law)
- Inflated contract prices with large cash credits — and why this looks like market manipulation
- Why dropping your buyer off at the builder's sales office is an agency liability waiting to happen
This isn't anti-builder. It's pro-agent. Know the risks before you're answering for them under oath.
key topics
Builder bonuses and incentives
Interference with buyer agency agreements
Market manipulation through price credits
Legal and ethical risks for real estate agents
Strategies for agent risk management
Chapters
00:00 Introduction to Builder Risks
02:33 Understanding Builder Bonuses
09:33 Escalating Compensation and Its Implications
17:34 Builder Interference with Agency Agreements
26:00 The Role of Buyer Agents
30:00 Preferred Lender Pressure and Buyer Representation
🎙️ Dishin' Dirt with Gary Pickren — South Carolina's #1 real estate podcast
Subscribe for new episodes every week covering real estate law, agency, and agent best practices.
📌 Blair Cato: http://www.BlairCato.com
Don't forget to like us and share us!
Gary
* Gary serves on the South Carolina Real Estate Commission as a Commissioner. The opinions expressed herein are his opinions and are not necessarily the opinions of the SC Real Estate Commission. This podcast is not to be considered legal advice. Please consult an attorney in your area.