Brokerage—Absent a Contractual Obligation, Real Estate Brokers Do Not Have Duty to Conduct Background Checks On Prospective Tenants—Plaintiff Alleged That Broker Represented That It Conducted a Background Check—Although No Duty to Investigate the Suitability of Prospective Tenant, If Broker Had Information That Materially Affected the Transaction, Such as a Criminal History, Broker Had a Duty to Disclose Such Information—Brokers Do Not Have a “Legal Duty to Provide Legal Advice” as to Municipal Leasing Requirements
AN OWNER SUED a real estate brokerage firm (broker). The owner had permitted the broker to show an apartment to prospective tenants. The tenants subsequently signed a lease with the owner. The owner alleged that the broker had assured the owner that the prospective tenants were “reputable” and that the broker “had performed a background check.” The tenants had moved into the apartment, but had allegedly failed to pay any rent. The owner had evicted the tenants.
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