The housing market is booming in many parts of the country. That influx of new listings and eager buyers can leave some real estate agents feeling overwhelmed and, unfortunately, they may cut some corners. However, that can leave you open to legal actions. These common real estate risks highlight a few of the ways that a slip up may increase your liability as a real estate agent.
Failure To inspect a Property
A final walkthrough inspection before closing by the buyer and agent is designed to identify any last-minute concerns. If you skip this step and the buyer finds a problem, you may be held responsible.
Giving Improper Advice
It is your responsibility to advise clients on real estate matters, and nothing else. Legal, structural, or financial advice is not covered under that heading. Clearly state your credentials and the limit of your ability to provide information, and then refer clients to appropriate professionals for their concerns.
Leaving Out the Details
Sellers and real estate agents are obligated to disclose known damages or hazards in a listed property. When you are preparing a listing, be sure to ask questions and then disclose any defects that are revealed in the official property description.
Careful preparation and professional behavior can reduce many risks associated with real estate transactions. For an added layer of protection, be sure to secure an appropriate professional liability insurance policy.