In the 2021 case Loheac v. Aldeborgh, Ms. Loheac, hired licensee Aldeborgh to represent her in the purchase of investment property. In the negotiations, Ms. Loheac made it clear that the agreed-upon purchase price included the seller leaving the furnishings. Mr. Aldeborgh assured her it did, but he omitted the furnishings from the purchase contract. After closing, Ms. Loheac filed suit for damages due to the licensee’s misrepresentation about the furnishings, and breach of fiduciary duties. Mr. Aldeborgh’s defense was that Ms. Loheac had signed the purchase agreement, which did not stipulate the furnishings were included.
The court found for Ms. Loheac because the purchase price she paid was a “cognizable injury,” and were it not for Mr. Aldeborgh’s failure to include the items in the purchase agreement, the furnishings would have been included.
While oral assurances are not part of a purchase contract, an agent has a duty of care to be truthful and to not mislead their client. By assuring Ms. Loheac that the furnishings were included, and then failing to commit those terms to writing, Mr. Aldeborgh breached his duty of care.