November 01, 2025

The National Association of REALTORS®’ Code of Ethics states that REALTORS® shall not advise on matters outside the scope of their real estate license. License holders should be cautious in handling matters of a legal nature, so as not to run afoul of the prohibition against the unauthorized practice of law. They should consult with their brokerage’s counsel and errors and omissions providers as well to determine the potential liability in taking on matters that go beyond the normal scope of their business.

Some real estate transactions can really test you. Texas REALTOR® magazine asked members to describe their toughest real estate experiences and offer details about how they overcame the challenges.

Mind the gap

Ciria Muñoz was on her way to the closing when the lender told her that her buyer was no longer employed. “The buyer casually mentioned he had a new job starting in two weeks but hadn’t disclosed the exact date,” says the McAllen-based Agent with Dalton Wade Real Estate. “Of course, I assumed he would have waited until after the closing.”

This caused the deal to stall, but by keeping communication open, working closely with the lender, and securing the seller’s patience, Muñoz was able to extend the closing until her client could provide two pay stubs. She learned the importance of asking follow-up questions to avoid misunderstandings and hiccups at the end of the transaction.

Listening opens doors

Claire Rodriguez’s client was comparing the market in Alice to Houston-style prices and home conditions. “His expectations were unrealistic, and he grew frustrated when homes didn’t match what he was used to,” she says.

The Keller Williams Coastal Bend Agent in Corpus Christi stayed patient, provided market data, and explained the pricing and inventory differences between markets. “By listening to his top priorities and focusing on solutions, I earned his trust and ultimately helped him find a home that fit his needs.”

More than meets the eye

After the homeowner died without a probated will, Jennifer Elrod discovered that selling the homeowner’s house would be more complicated than she anticipated. She learned the estate had two more heirs than the five she originally knew about. One had predeceased the homeowner and the other was incarcerated. It took careful coordination and legal compliance to work with the incarcerated heir.

When the appraisal came in $20,000 short of the contract amount and a new roof was required by the contract, the Dallas-based United Real Estate Sales Agent worked with everyone involved to renegotiate terms and manage expectations. She knew that part of keeping the transaction on track meant serving as a steady hand and emotional support for the grieving family. The sale closed on time.

“It wasn’t just a transaction. It was a triumph of perseverance, problem-solving, and heart,” she says.

Though the Texas Property Code does not require a seller to disclose deaths on the property that resulted from natural causes, suicide, or a condition unrelated to the property, murder does not fall into these categories.

Therefore, a seller who is aware of a murder occurring on the property would need to disclose it to all potential buyers.

A second chance

Robert Wagner received shocking new information on a referred listing as he was doing a walkthrough to confirm pricing and take photos. A neighbor casually asked, “Do you think it will sell fast even with the murder-suicide?”

Within days of going on the market, Wagner received multiple lowball offers from buyers who knew the home’s history and hoped the seller would accept less money for the property.

Interest faded after prospects learned the home’s history. Rather than settle for the options at hand, the Century 21 Judge Fite Company Agent in Fort Worth sought new prospects who were more interested in the property as a home and would be willing to pay closer to the asking price. He sent targeted email campaigns to renters and agents and used reverse prospecting through his MLS to identify buyers looking for similar homes. “In the end, we sold for an incredible price, and the sellers walked away thrilled.”

Hand holding across borders

Deemed a foreign entity by the IRS, the property seller was an expired LLC owned by a Mexican company operating under the SA de CV designation, which is like an American LLC. Brenda Taylor worked with the title company and a seasoned Foreign Investment in Real Property Tax Act specialist to complete the necessary documentation and tax withholding.

“The buyer’s agent, new to FIRPTA transactions, required guidance and clear explanations,” says the Global Group Team Leader for RE/MAX Dallas Suburbs. “Meanwhile, the seller, residing in Mexico and not fluent in English, demanded a high level of support and patience.” She describes the transaction as a masterclass in hand-holding, involving “frequent phone calls, extensive research, and a delicate balance of providing helpful information without crossing the line into legal advice.”

The work that must be done

Charles Nuber’s most difficult transaction was the probate sale of a home where the property owner committed suicide. The owner’s parents had stepped in to sell the property and gain custody of the owner’s two young children, recalls the Broker Associate with Keller Williams Dallas Metro North.

“Walking through the house for the first time, it was in the same condition as the day of the event. Children’s toys in their bedrooms were just as they had been left that day, and the ‘I love you Mommy’ crayon drawings were still on the refrigerator,” he says. “My heart ached for that family.”

Nuber took care to keep the family informed and waived any fees related to court testimony related to the sale. It wasn’t the kind of transaction you look back on fondly, but it was work that needed to be done. “I’m grateful they called me to assist during that difficult time.”

Setting boundaries

From the start, Maria Moreno’s client was dismissive, overly critical, and reluctant to trust the expertise of the LPT Realty-Azzur Realty Group Agent. “Despite my patience and professionalism, the client constantly second-guessed my advice, making the process unnecessarily stressful.”

The Houston-based agent felt emotionally drained as closing approached. She decided to set firm boundaries with the client. She remembers saying, “If you’re not willing to trust my expertise and allow me to do my job, you have the option to terminate this contract and start over.”

The conversation was a turning point, and the rest of the transaction moved forward successfully. “This experience reinforced the importance of standing firm in my expertise, setting boundaries, and knowing when to walk away if a client refuses to work collaboratively,” she says. “Real estate is about relationships, but not at the cost of professionalism or wellbeing.”

Always have a backup plan

With days left before closing, Rachel Cahill learned the lender could not approve the buyer’s loan due to an overlooked detail. The sellers were furious because they’d already made plans to move out of state, and the buyers were devastated.

The Prosper-based Broker Associate and COO from Cliff Freeman Group brokered by eXp Realty used expert negotiation skills to calm down both sides, then spoke with the lender to learn what happened and asked about solutions. “Simultaneously, I had a backup plan: I reached out to a different lender that I knew had a strong track record of getting difficult loans approved,” she says. “After a few long days of working the problem from all angles, the second lender came through, and we got the deal closed.”

The key point is not to let the deal blow up but bring both sides back to the table to find solutions, she adds. “Strategy, emotional control, and tactical empathy are key here to keep everyone working together.”

A house divided

“I had a situation where the husband and wife were not on the same page about the house,” says Krishna Upadhyaya. “They would argue back and forth, and I just wanted to leave!” It took time for the Wylie-based Broker/Owner of Eclipse Real Estate Group to bring the couple into agreement. “It involved a lot of difficult conversations with them separately and then together.”

The transaction taught her patience and the importance of being an impartial and trusted third party when helping clients. “I was being assertive at the risk of losing them as clients forever. I realized that buyers need guidance, direction, and a lot of hand holding.”

Remember your duties

License holders should remember their duties pursuant to The Real Estate License Act, TREC rules, and NAR’s Code of Ethics when dealing with difficult clients, especially those related to disclosure and not advising on areas outside of the scope of their real estate license.

Not every client will be easy to work with, but some obstacles can be overcome with the right approach.

Address misconceptions

“Most clients usually come with preconceived notions about how things work based on someone else’s experience. I usually counsel them about today’s market trends to set the tone. I also remind them that no two real estate transactions are alike.” Bridgette Levine, Broker Associate, Fathom Realty, DeSoto

Back up your explanations with data

“I’ve come across clients with obvious deferred maintenance and dated homes, and they struggle to invest in renovations. I present my clients with other comparable properties on the market to show them what we are up against with other listings.” Dillon Womack, Agent, Womack Real Estate, Austin

Go step by step

“I believe that most conflicts or challenges can be minimized when clients feel informed and heard. I take time upfront to explain every step of the process in plain language. When the situation becomes difficult, I focus on active listening, validating my clients’ concerns, and then guiding them to practical solutions.” Shonte Jones, Agent, TD Realty, Arlington

Set expectations early

“Most challenges are related to misaligned expectations. Some buyers may believe they can get a significant discount on a property even in a seller’s market, or sellers may expect to receive over asking without making necessary updates. Setting clear, data-driven expectations early on is one of the best ways to prevent surprises, earn trust, and ensure a smoother transaction for everyone involved.” Luciana Ulivi, Agent, Keller Williams Realty, Midland/Odessa

Don’t take it personally

“I approach difficult clients as a personal challenge to rise above and not take things to heart. I empathize with where they are coming from, as buying and selling are stressful situations.” Leslie Jerez, Agent, HomeSmart, Houston

Get your broker or supervisor involved

“If I’m sponsored by or associated with another broker, I want to get my money’s worth. One of the ways I do that is to bring my problematic or difficult situations to the broker. Brokers are great problem solvers. We brokers understand that if we can’t resolve an issue at our level, it may go to TREC in the form of a complaint or develop into a legal matter.” Rick Carr, Designated Broker, HomeSmart, Arlington

Don’t avoid difficult conversations

“Bad news doesn’t get better with time. The message should be delivered gently and compassionately, but in a straightforward way with no sugar coating.” Susan Kennedy, Agent, American Realty, Hickory Creek