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n May, Bijal Shah and Uma Bansal decided to list their $2.2 million North Center property for rent with the help of @properties’ Leigh Marcus and his team, who were ranked as Cook County’s third-largest broker by sales volume last year. They found a tenant soon after and signed a leasing agreement, according to their lawsuit filed last week. However, they discovered later that the renter, Morrell Neely, was being represented by Marcus and his team in what is known as dual representation. The homeowners also claimed they were unaware of Neely's financial and criminal background, which included multiple bankruptcy filings, eviction judgments, a federal criminal fraud case, and another eviction proceeding filed last November. By the time they discovered these red flags, Neely had already signed the lease and had stopped paying rent. The homeowners received "zero dollars" in rent from Neely, who had been renting the property for more than three months.
The allegations against Marcus and his team include consumer fraud, deceptive business practices, violation of the Real Estate Licensing Act, intentional and negligent misrepresentation, and fraud filed against Neely. The homeowners claim that Marcus and his team breached their fiduciary duty when they decided to represent Neely without informing them of this dual representation.
A spokesperson for @properties Christie’s International Real Estate declined to comment on pending litigation. Neely's attorney, representing him in another ongoing case, also did not respond to a request for comment.
The homeowners' decision to remove a commission offering on their property was notable as it came months before changes around commission sharing took effect in August, aimed at promoting transparency in brokerage services.
The lawsuit claims that Neely has a history of staying in homes as a "hold-over tenant" and has received eviction judgments in the past. The defendants have yet to file a response to the complaint, and the first court hearing is set for January 8.
