REAL ESTATE LAW HOMEWORK HELP:

I.CONSIDER THE FOLLOWING NARRATIVE FACTS:

a.The Bradys owned a luxury single-family residence in Malibu. The residence has three stories, with each story in a different, irregular shape.Consequently, the rooms on each story also are irregularly shaped.Public information from the tax assessor's office describes the property as having a residence of 9,434 square feet.

b.The Bradys had to sell the property, because Mr. Brady accepted a job in Boston, Massachusetts. The Bradys engaged George Costanza, a licensed real estate salesperson employed by Sellwell Realty, Inc., to sell the property.

c.Costanza viewed the property, obtained the available public information, and listed the property on the MLS. The listing and the subsequent flyers and promotional material stated that the residence had "approximately 15,000 square feet of living areas."The listing price was Fifteen Million Dollars ($15,000,000.00).

d.The Mariotas were represented by Elaine Benes, a licensed real estate salesperson also employed by Sellwell Realty, Inc. On behalf of the Mariotas, Benes made an offer of Twelve Million Dollars ($12,000,000.00) for the Brady property.

e.The Bradys accepted the Mariotas' offer of Twelve Million Dollars ($12,000,000.00). The sale closed.

f.The Residential Purchase Agreement between the Bradys and the Mariotas, which all the parties had signed, disclosed the fact that both Costanza (the Bradys'/sellers' real estate salesperson) and Benes (the Mariotas'/buyers' real estate salesperson) were agents working for Sellwell Realty, Inc. (the real estate broker) and that Sellwell Realty would earn a six percent (6%) commission on the transaction.

g.After the sale was consummated and the Mariotas had taken possession of the property, during the course of permitting for some work on the residence, the Mariotas discovered that the residence did not have 15,000 square feet of living space and that instead it had only 9,434 square feet.

h.The Mariotas were furious, contending that with only 9,434 square feet the residence was worth no more than Nine Million Dollars ($9,000,000.00).

i.The Mariotas filed a lawsuit against Costanza (the Bradys'/sellers' real estate salesperson), Benes (the Mariotas'/the buyers'/their real estate salesperson), and Sellwell Realty, Inc. (the real estate broker for both real estate salespersons), alleging (1) breach of contract (including breach of good faith and fair dealing) of their buyers' agency agreement with Sellwell, under which Benes had acted as their agent in their purchase of the Bradys' property; and (2) fraud and breach of fiduciary duty against all three, based on the square footage discrepancy.

II.ANSWER THE FOLLOWING QUESTION(S):

a.Were the agency relationships of Sellwell Realty, Costanza, and Benes to the Bradys and to the Mariotas legal, ethical, and proper?

If so, (1) identify the type of agency each real estate professional had with his/her/its client; (2) specify what each real estate professional had to do to document that agency relationship; and (3) citing specific Narrative Facts, explain why the agency relationships were legal, ethical, and/or proper.

Or, if not, (1) identify the type of agency each real estate professional had with his/her/its client; (2) specify what each real estate professional had to do to document that agency relationship; and (3) citing specific Narrative Facts, explain why the agency relationships were illegal, unethical, and/or improper.

b.Now, assuming the agency relationship(s) of Sellwell Realty, Costanza, and Benes to the Bradys (sellers) and to the Mariotas (buyers) were legal and proper, will the Mariotas (buyers) win their lawsuit against Sellwell Realty (the real estate broker), Costanza (the seller's real estate agent), and Benes (the buyers'/their own real estate agent), or any of them?

If so, (1) identify the legal ground(s) for liability of each real estate professional - Sellwell Realty, Costanza, Benes; and (2) citing specific Narrative Facts, explain which of the real estate professionals is liable to the Mariotas and why.

Or, if not, (1) identify each real estate professional - Sellwell Realty, Costanza, Benes who is not liable to the Mariotas; and (2) citing specific Narrative Facts, explain why the real estate professional(s) are not liable to the Mariotas.