Too often real estate agents have resorted to selling property merely as a second income earner and without informing themselves of the laws, regulations and professional ethics affecting the sale of real estate. These realtors run the risk of incurring personal liability to the buyer who acts in reliance on their advice, as well as exposing the buyer to significant potential financial loss.

This has become a hot button issue in recent time as many real estate developments have simply come to a grinding halt in construction due to problems in construction financing or uncertainties surrounding the continued viability of real estate projects. As a result buyers have been unable to close the transaction, flip their properties on the market as intended or to somehow realise their desired return on investment.

Acting in reliance of the advice of the real estate professionals,or information received from property owners, and the prospect of quick profits, buyers often purchase significantly overpriced properties. Quite unfortunately, they have since had to seriously reconsider the soundness of their investment. Many have come to realise too late that they were duped into purchasing properties priced well above their true current market value.