How to Spot a Real Estate Agent or Broker Who Is Working Against You

When you buy or sell a home, you are trusting an agent or broker with one of your largest financial assets. Most are honest. But misconduct happens, and it often starts with a small omission. You deserve to know who is on your side.

The core duty is fiduciary. Loyalty. Disclosure. If an agent represents both buyer and seller, that is dual agency. They cannot advocate fully for either side. Some states allow dual agency only with informed written consent. But some brokers push dual agency to earn both sides of the commission. Ask upfront: “Will you represent me exclusively?” Get it in writing. If they say “dual agency is standard” and refuse details, be wary.

Hidden fees and kickbacks are another danger. Real estate agents may refer you to a mortgage lender, title company, home inspector, or attorney. Legitimate referrals are common. Illegal kickbacks are not. Under federal law, settlement service providers generally cannot pay for referrals without disclosure and proper legal structure. Red flags include lender fees higher than competitors, title insurance prices that seem inflated, an agent insisting you use “our” service, or an agent who will not give you a Good Faith Estimate or Closing Disclosure to compare. Ask for the affiliated business arrangement disclosure. If they get evasive, use your own providers.

Loan steering is a serious problem. Some agents push buyers to a lender who approves loans quickly but at higher rates or risky terms. If you are 45 to 64, you may be targeted for reverse mortgages, home equity lines, or adjustable-rate loans that reset. An agent might say, “Don’t worry about the rate, we’ll refinance later.” That is not a plan. Ask for loan estimates from at least two lenders. Compare the APR, closing costs, points, and prepayment penalties.

Fake interest and phantom offers are used to pressure you. To push you to bid higher or accept lower, a broker may claim another buyer is ready. Sometimes that is true. Sometimes it is invented. Ask for proof in writing. If a listing agent says “highest and best by noon,” ask how offers are presented. For sellers, an agent may bring a lowball offer from a friend or relative and discourage other showings. If your home gets little traffic but the agent says the market is soft, check comparable sales yourself.

Pressure to waive inspections is a major warning sign. A broker who tells you to waive inspection, appraisal, or financing contingency to win a deal is putting commission ahead of your safety. Never waive inspection on a home you plan to live in. Never lie on a loan application. If an agent suggests you call it “owner-occupied” when it is an investment, or hide gift funds, walk away. Mortgage fraud is a federal crime.

Wire fraud and deposit theft are growing threats. Real estate transactions are prime targets for email compromise. You may get an email that looks like it came from your agent or title company with wiring instructions. Call the title company at a number you independently verify. Never trust a phone number in an email. If an agent asks you to wire earnest money to a personal account or to a company with a different name, stop. Legitimate deposits go to escrow or trust accounts.

Property management and broker misconduct can also cost you. If you own rental property, watch for managers who collect rent but do not remit it, charge fake maintenance fees, or place unqualified tenants. For sales, watch for brokers who list your property without a written agreement, fail to present offers, or double-end a deal without disclosure. These are license law violations in most states.

How do you protect yourself? Interview more than one agent. Ask for their license number and check disciplinary history with your state real estate commission. Read every document. Ask for a seller’s net sheet or buyer’s closing disclosure in advance. Keep copies of texts and emails. Get an independent attorney for contract review. If something feels rushed, it probably is.

If you suspect misconduct, do not just complain online. File a complaint with your state licensing board, your state attorney general’s consumer protection division, and, for lending-related issues, the Consumer Financial Protection Bureau. You can also contact HUD if fair housing is involved. Keep a timeline. Misconduct is easier to prove with documents.

A good agent earns a fee by making a complex process safer. A bad one earns it by keeping you confused. Trust your instincts, verify credentials, and never sign away your leverage. The right professional will welcome your questions. The wrong one will try to shut them down.