5 Builder Traps That Expose Buyer Agents to Lawsuits and License Loss

Send us Fan MailBuilders 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 licenseEscalating volume incentives and why every client in your pipeline is now at riskThe 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 manipulationWhy dropping your buyer off at the builder's sales office is an agency liability waiting to happenThis isn't anti-builder. It's pro-agent. Know the risks before you're answering for them under oath. key  topicsBuilder bonuses and incentivesInterference with buyer agency agreementsMarket manipulation through price creditsLegal and ethical risks for real estate agentsStrategies for agent risk managementChapters00:00 Introduction to Builder Risks02:33 Understanding Builder Bonuses09:33 Escalating Compensation and Its Implications17:34 Builder Interference with Agency Agreements26:00 The Role of Buyer Agents30:00 Preferred Lender Pressure and Buyer Representation🎙️ Dishin' Dirt with Gary Pickren — South Carolina's #1 real estate podcastSubscribe for new episodes every week covering real estate law, agency, and agent best practices.📌 Blair Cato: http://www.BlairCato.comDon'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.