The agent/broker may have a duty to advise you to seek a CPA for advice on tax matters, but that is about it. I don’t believe they have the duty to advise you regarding taxes. In fact, most listing agreements and purchase agreements specifically state that the agent/broker has not, and will not, give tax advice and that you should seek the help of tax professionals. Agents brokers are generally not tax lawyers nor are they CPA’s. For an agent/broker to be giving tax advice may actually be professional negligence on their part. It’s up to you as a buyer/seller to determine for yourself the tax consequences of a specific transaction.
Does a real estate agent have a legal or ethical obligation to disclose the potential capital gains tax liability to a seller they are representing? For example, if the agent knows the seller will not qualify for the capital gains exclusion, do they have a responsibility to inform the seller that they may be subject to a substantial capital gains tax ?
Re: Capital gains tax information - Posted by Bonnie Roberts
Posted by Bonnie Roberts on October 25, 2005 at 12:46:09:
My sisters and I recently sold some property in Tenn. that had been given to us by our mother who died in March 2005. One sister and I had been paying taxes on part of the property since 1984 as our Mother had divided it after our Dad died in 1983. The third sister would get the front of the property with the house after Mother’s death. She did not pay any taxes. Mother requested in her will we put the property back into one piece and sell it. Thus CGT. Can you help us?