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Negligence Battles Reaching Courtrooms: Overview of Case Law, Idzan v. Broadfoot – Part 4

Posted on 19 Aug'14 Tags: , , , , , , in Case Study, Real Estate, Real Estate Blog Series

This is our 4th post in our ongoing Real Estate Blog Series exploring the Real Estate Agents’ Duty of Care: Legal FrameworkToday, we will examine another case law example of negligence battles reaching the courtroom.


*Idzan v. Broadfoot[2011] A.J. No. 750

Facts and Decision

In this case, the Idzans as Plaintiffs, filed an action for damages for the defendant’s failure to provide adequate services and advice. The defendant realtor, Jack Broadfoot, was the listing agent and had an exclusive listing of the Idzans’ condominium in March 2007. The condominium was to be listed at $254,900. Broadfoot also presented the Idzans with a Guaranteed Sales Agreement (GSA). Under the GSA, a company, Fountainhead, agreed to purchase the condominium for $225,000 in the event that it was not sold before May 31, 2008. As the

condominium did not sell and as the Idzans took possession of their new home in June 2009, they attempted to close the GSA. However, Fountainhead rejected the closing of the transaction as transfer documents had not been provided in a reasonable period of time and the assumption of a mortgage charge had not been allowed. As a result, the condominium was not sold until November 2008 at a price of $185,000. The Idzans took the position that Broadfoot was negligent in the performance of his duties as their real estate agent.

The Plaintiff’s action was allowed and the realtor was held liable. Broadfoot had a fiduciary relationship with his clients and also owed them a duty of care through contractual relations. Broadfoot failed to inform the Idzans of the ongoing relationship his company had with Fountainhead, the purchasing company. He also failed to explain contradictions between two agreements and failed to recommend outside legal advice. He therefore breached the standard of care required of a real estate agent and acted negligently. The injury suffered by the Idzans was directly related to Broadfoot’s negligent conduct. The Idzans were awarded $25,000 in damages.

Next week we will continue our journey through the case law and show you more examples of how Real Estate agents can be left open for litigation.

Make sure to check out our previous posts on this topic, which can be found here:

Why do Real Estate agents get sued? – A Real Estate Blog Series

Disclaimer: The above article is not a legal opinion as every case is different and is only for general awareness. Please contact us for specific questions and legal advise.