Real Estate Investors Loss Recovery under UPIA

Real Estate Loss Recovery

When is a Real Estate Agent a fiduciary and liable for investors' losses?

A prominent legal expert on Fiduciary Duty states, "fiduciary duty is an extremely broad concept and likely to cause liability to be found in new situations"

Recently, Mr Kimmons writes that the acronym OLDCAR outlines a Real Estate Agent's fiduciary duty owed to investors here - http://realestate.about.com/od/realestatebasics/p/fiduciary_duty.htm

Some issues to explore include, when did the real estate broker or agent (or dual agent) know, learn or become aware that the subject property would not be a residence but an investment asset owned by a trust, partnership, LLP, LLC, ERISA Qualified Pension Retirement benefit plan, Profit Sharing, Money Purchase, Keogh Plan, 401k plan, IRA (individual Retirement Account Arrangement) or SEP IRA? Prudent Real estate trust, LLC LLP or FLP investments are not speculative rather should reflect deliberation of: historic cash flow projections, impound accounts, property management costs, income and capital appreciation, within historical and future expected volatility risk and return, diversification, concentration, inflation, deflation, taxes, income, borrowed funds, excessive leverage, loan to value, equity to value.

A real estate fiduciary audit reviews the Agent's or Broker's investment fiduciary duty owed, in addition to disclosures of property defects, to investors, LLP LLC FLP partnerships, trusts or pension benefit plans under ERISA or the Uniform Prudent Investor Act (UPIA). California adopted UPIA in 1996. As of 2009, 46 states, the District of Columbia and V.I. substantially follow UPIA http://www.nccusl.org/Update/uniformact_factsheets/uniformacts-fs-upria.asp

The American Bankers Association approved UPIA and offers additional resources at:http://www.aba.com/teleweb/tb020708.htm

Landlords, Apartment owners, Rental property owners or real estate investors losses factors may range from an agent's breach of investment fiduciary duty to potential real estate fraud.

For more information contact info@fiduciaryexpert.com or (310) 943 - 6509

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