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CLAIMPREVENT® BLOG

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How Natural Hazard Disclosure Reports Can Minimize Real Estate Risk (even if they aren’t mandatory in your location)

Sellers must disclose any material defects, problems, or issues with a property that may influence a property’s price or the buyer’s decision to purchase. The actual detail of…

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Using Automated Seller Disclosure Forms – Risks and Benefits for Real Estate Licensees

Technology is moving at a rapid pace and new automation tools are appearing all the time.  Disclosure issues are a major reason that real estate licensees (and sellers)…

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Managing Disgruntled Staff: Risk Management for Real Estate Brokers

Managing disgruntled staff can be difficult in any profession. In a real estate brokerage,  disgruntled staff members have the potential to make life very difficult for a broker,…

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Property Management Ads and Screening of Applicants: ClaimPrevent Summary #8

Fair Housing Act and Housing Ads Real estate licensees and property managers need to be aware of and comply with the Fair Housing Act. This legislation prohibits discrimination…

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Avoiding Biased Appraisals and Discrimination Lawsuits

We all come from different backgrounds, with learned ideas and perceptions based on our experiences. This can contribute to bias, whether conscious or unconscious. Bias, at its core,…

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Talking About Zoning with Buyers — Risks and Tips for Real Estate Licensees

Real estate licensees need to act with caution when it comes to talking about zoning with prospective buyers. What may seem like a casual chat can lead to…

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What Real Estate Brokers Should Look for When Comparing Business Owner’s Policies

When you own a real estate brokerage, you likely need a Business Owner’s Policy, to combine general liability insurance with commercial property insurance. But not all Business Owner’s…

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Avoiding Legal Trouble When Working a Real Estate Contract: ClaimPrevent® Summary #7

Once you’re at the offer or accepted contract stage, there are common pitfalls even the most experienced licensee can fall into if you’re not careful — from inspections…

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Minimizing Risks in Real Estate Transactions with Transaction Management Software

Technology is advancing at a rapid rate in all industries, and real estate is no exception. Transaction Management Software is yet another area of real estate where new…

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Do’s And Don’ts Telemarketing Regulations

The Do’s and Don’ts below should give real estate licensees a general understanding of what is required in connection of telemarketing. Violation of the rules could result in…

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Minimizing Real Estate Licensee Liability When Listing Foreclosure Properties

When you list a foreclosure property, there are risks that can lead to lawsuits if those risks aren’t properly managed. Here’s what to watch out for and how…

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Employee And Independent Contractor Protocol In California

Property owners, property managers and real estate agents face a lot of hidden dangers from a risk management perspective in remodeling and repairing structures and maintaining and improving…

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Handling Challenges with Clients and Other Licensees: ClaimPrevent® Summary #6

Could your team — and your new hires — use a refresher on key risk management areas? This ClaimPrevent® Summary touches on critical details about working with clients…

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How Failing IT Infrastructure Can Cause a Lawsuit for Real Estate Brokers

Failing IT infrastructure can cost real estate brokers money. There can be costly outages and potential loss of systems and important data. Brokers may even face a lawsuit…

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Cryptocurrency, the FTX Fallout, and Real Estate Transactions

The ripple effect of the collapse of one of the world’s crypto giants, FTX, is now being felt in the real estate industry. The cryptocurrency market was already…

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When a Property Owner Wants to DIY: how real estate licensees and property managers can manage the risks

DIY (“do it yourself”) can be an attractive option for a seller or a landlord because it’s cheaper than engaging a professional. But, what about the impact if…

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4 Latest Text Scams in Real Estate and How To Prevent Serious Consequences

Scammers are using sophisticated ways to try and get money from unsuspecting businesses and individuals. Text scam messages are one of the methods that scammers use to try…

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Filling Out the Purchase and Sale Agreement to Avoid Problems: ClaimPrevent® Summary 5

This summary covers the most common problems when completing a Residential Purchase and Sale Agreement from a Risk Management perspective. Use it to onboard new hires or as…

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Handling Offers to Purchase Real Estate: ClaimPrevent® Summary #4

This session covers the writing, review, acceptance, and rejection of real estate offers — all from a risk management perspective. Use this ClaimPrevent® summary for onboarding new hires…

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Artificial Intelligence: Opportunities and Threats for Real Estate Brokers

Artificial intelligence (AI) has been at the forefront of recent media coverage. Some commentators have voiced concerns about AI chatbots replacing human customer service, the possibility of widespread…

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Antitrust Laws for Real Estate – How Brokers Can Avoid Anti-competitive Conduct

Antitrust laws in the United States exist to protect consumers. They set the ground rules for fair business practices and competition, and prevent monopolies from occurring. But antitrust…

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How Using Photo Filters and Editing Property Photos Can Lead to a Real Estate Lawsuit

It’s 2023 and filters are everywhere. There are filters on Instagram®, Snapchat®, and TikTok®, and photo editing tools on smartphones. That’s even without professional tools like Photoshop®. But,…

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Real Estate Seller Disclosures and Working New Listings: ClaimPrevent® Summary 3

This session covers Seller Disclosures, Real Estate Licensee Disclosure Responsibilities, Staging, and Showings from a Risk Management perspective. Use this ClaimPrevent® summary for onboarding new hires or as…

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Selling Homes With Rainwater Tanks and Water Barrels

Rainwater tanks and water barrels are an asset to a homeowner. They yield many benefits and are often installed as an environmentally-conscious choice that prevents the wasting of…

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When Friendly Competition in Real Estate Can Lead to a Lawsuit

Real estate is a competitive industry. A bit of friendly competition is natural, but what if your licensees take it a step too far and won’t cooperate with…

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Natural Hazard Disclosures — What They Are and How They Can Prevent Real Estate Lawsuits

Some locations in the United States are more synonymous with disasters than others — wildfires in California, hurricanes in Florida, and earthquakes along the west coast. However, it…

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Who is Responsible for the Actions of Non-Licensed Staff in Your Real Estate Office?

Your real estate office likely has a number of independent contractors working under your brokerage. An independent contractor may have non-licensed assistants helping with answering phones, marketing efforts,…

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Know Your Potential Liability Before Turning Away Tenants With Section 8 Vouchers

When prospective tenants ask a real estate licensee if the landlord will  take Section 8, they want to know if the landlord will  accept part of their rent…

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How Using ‘Jargon’ in Your Real Estate Business Can Lead to a Lawsuit

Whether you’re assisting a real estate seller or a buyer, your communication skills can create a positive experience or a negative experience for your client. Clear communication is…

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Selling a Home That Isn’t As Clean As it Should Be

Some clients are amazing and their properties look like show homes 24/7. These gems are a dream to promote and are easy to sell to prospective buyers. But,…

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Property Managers: How Timely Maintenance and Repairs Can Prevent Lawsuits

Many responsibilities come with being a Property Manager. It’s not just about finding great tenants and collecting the rent. Managing property maintenance and repairs is an ongoing job.…

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Real Estate Licensee Responsibilities When Creating New Listings: ClaimPrevent® Summary 2

This session covers licensee responsibilities with new listings, information to be gathered with different seller situations, and creating the public listings — all from a risk management point…

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Attracting Real Estate Clients and Showing Property: ClaimPrevent® Summary 1

Our new ClaimPrevent® Summary Series explores what every licensee needs to know from a risk management perspective in 9 installments, organized by topic (links to all the Summaries…

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Selling or Buying New Builds or Properties Under Construction

Selling new builds or properties under construction can be challenging for real estate licensees. When dealing with these properties, licensees face risks that are not so common with…

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Educate Your Real Estate Appraisal Clients on Appraisals vs. Valuations

One of the greatest challenges for a real estate property appraiser is balancing the expectations of your clients. Sometimes challenges arise because a client asks for an appraisal,…

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June 2022 California Forms Update & Possible Changes In December 2022

This Risk Management Article covers changes to the June 2022 CAR forms and some anticipated December 2022 changes to the Residential Purchase Agreement.   June 2022 changes Seller Possession…

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How Real Estate Licensees Can Avoid Lender Fraud Scams

Even the most astute real estate professionals can find themselves embroiled in lender fraud scams. Here’s what you need to know and steps you can take to protect…

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Top Tips for Real Estate Transaction Coordinators: Document Checking to Avoid a Lawsuit

Transaction Coordinators play an important role in real estate transactions. Being organized and paying great attention to detail is critical to your success. You need to stay on…

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Real Estate Licensees: How You Can Prevent an Unauthorized Practice of Law Claim Against You

California Civil Code section 2079.16 states that buyers and sellers of real estate are advised that California licensed real estate agents and brokers are not qualified to give…

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Property Manager’s Guide to Going on Vacation… and Avoiding a Lawsuit While Away

Taking time out to go on vacation can be difficult for Property Managers if you manage multiple properties simultaneously, it may not be possible to just drop everything…

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Procuring Cause and Real Estate Selling Commission Disputes — 3 Things You Need Know

A buyer canceled the purchase contract on a property with her first broker. Then, the buyer went into contract again on the same property, using a buyer’s agent…

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CRES Risk Management Webinar: What real estate professionals should do if served with a subpoena

Attorney Kathryn Holbert has been defending real estate professionals for more than 15 years. In this webinar, Kathryn provides insight into what you should do if served with…

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“Steering” in Real Estate: How to avoid it and stop lawsuits in their tracks

Steering is a method of discrimination in real estate. It happens when a real estate licensee influences a buyer or prospective tenant’s choice of housing because of their…

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Managing Risks When Selling or Buying Condos or Properties Covered by a Homeowners Association

Condominiums and other properties covered by a Homeowners Association have specific challenges that ordinary properties don’t have. Often, they have strict rules and regulations that can  sometimes be…

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How to Sell Older Homes That May Contain Hazardous Materials

Selling older homes can be a challenge. Unlike more modern properties, they may contain a range of hazardous materials that are no longer commonly used in modern construction.…

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Your Real Estate Licensees Can Give Home Sellers Breakthrough Disclosure Protection

Many a lawsuit has happened because a buyer finds an issue post-closing and blames the seller for not disclosing key defects. Even when sellers have been honest in…

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RESPA Compliance for Mortgage Brokers

RESPA compliance often comes up as an area of concern for real estate licensees, but it’s equally as important to mortgage brokers. As a mortgage broker, you may…

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What Real Estate Licensees Need to Know to Ensure Compliance with the New Equality Act

In June 2022, The White House announced that President Biden continues to call on the Senate to pass the Equality Act. The legislation, if passed, will provide long…

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Why Your Specific Real Estate Activities in the Past MUST Be Covered in All Future E&O Policies

Real estate licensees can find themselves in a challenging situation if they haven’t read the fine print when switching insurers. Not having current coverage for SPECIFIC past activities…

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Can Landlords Impose Mandatory Vaccinations for Tenants?

As a property manager, you may come across landlords that want to impose mandatory COVID-19 vaccinations. The pandemic has caused significant discussion and, in some cases, debate about…

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The Pros and Cons of Using Real Estate Broker Management Software

There are a variety of tools and software available to help brokers to manage their real estate business. Sometimes it can be difficult to choose the best options…

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Dual Agency Question: 1031 Exchange Delayed … Who Pays the Buyer’s Rate Lock?

In dual agency, the real estate licensee acts on behalf of both the buyers and sellers, and has fiduciary duty to both parties. Dual agency can be appealing,…

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Risks and Benefits to Real Estate Appraisers of Automated Valuation Models and Appraisal Software

Advances in technology are helping businesses around the world to operate more efficiently, smarter, and more effectively than ever before. In the real estate industry, supporters of Automated…

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Real Estate Brokers: Commingling of Funds Will Lead You Straight to Court

Many things in real estate can lead a broker straight to court and a costly lawsuit. Commingling of funds is one of those things.  Commingling is when a…

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Housing Voucher Discimination

How Real Estate Licensees Can Avoid Housing Voucher Discrimination

The Federal government’s Housing Choice Voucher Program assists very low-income families, the elderly, and the disabled to afford safe, decent, and sanitary privately-owned rental housing. In certain circumstances,…

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Should the Seller Disclose Murder that Might Have Happened in the Home?

Your sellers just told you they’ve learned there may have been a murder in their home in 1975. The claim hasn’t been verified, but the sellers wonder if…

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Transaction Coordinator Fees and RESPA Violations

In recent years, transactions using Transaction Coordinators (“TCs”) have increased. This article examines risk management issues surrounding not only the charging of TC fees but also the scope…

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What Insurance Does an Escrow Officer Need?

Escrow Officers have a significant responsibility in real estate transactions. Accuracy and attention to detail are important. There are many risks involved and if something goes wrong, an…

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Creating a Slander and Libel-Free Culture at Your Real Estate Brokerage

As a broker, you can be held responsible for something one of your team says or does. Slander and libel are real concerns, and if one of your…

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