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How To Avoid A Real Estate Lawsuit When Selling A Storm-Damaged Home
Natural disaster can come at any time -- whether it’s a hurricane, like we’ve seen recently in Florida, or the unprecedented flooding in Houston. The trail of disaster…
What Real Estate Agents Need to Know about Smart Homes
With smart home technology on the rise, it’s important for real estate agents to know what's available and how to showcase it. But, smart technology brings its own…
3 Ways to Avoid a Real Estate Lawsuit When Using Social Media
Social media can be a great way to showcase listings, build relationships, and connect with clients and potential clients. But to maximize its benefits, you need a solid…
How to Avoid Real Estate Lawsuits from Virtual Staging
Want quicker sales and higher sales prices? Staging a home might be the ticket, because it helps potential buyers see themselves living in a property. And then there’s…
How to Withdraw Counteroffers to Prevent Real Estate Lawsuits
The good news is that you’ve gotten multiple offers on an open listing. The bad news, you accidentally sent out two counter-offers. What should you do? One of…
What to Do When A Real Estate Lawyer Wants to Talk to You
Don’t let a simple inquiry escalate into a real estate E&O claim You see the email pop into your inbox, or the receptionist tells you there’s an attorney…
Three Ways to Protect Yourself From Foundation-Related Lawsuits
Foundation issues are among the most common problems found in home inspections, and foundation defects and cracks are among issues you need to disclose in most places. When…
Can You Avoid Real Estate Lawsuits with Good Customer Service?
Your excellent customer service is essential in real estate. Satisfied clients stick with you, become repeat customers, and refer others to you. Dissatisfied clients, on the other hand,…
How to Advise Your Real Estate Client About Bad Odors
You may talk to your sellers about curb appeal, decluttering and staging. But there’s something else that can make a terrible first impression: smell. Troublesome odors may make…
Can Real Estate E&O Save You from Misrepresentation?
Misrepresentation is among the most common claims made against real estate agents. It seems pretty obvious that you shouldn’t misrepresent the property you want to sell, but it…
Should You Respond to the Threat of a Real Estate Lawsuit?
Seller carrybacks can be risky. Could helping a client with a carryback loan put you at risk of a real estate lawsuit? In this example it did. Our…
Scam Alert: The Latest Schemes Agents May Not Know About
In real estate, we’re still seeing numerous cases of wire fraud – and now we’re seeing some new types of fraud. In the past six months, we’ve seen…
A Real Estate Broker’s Guide to Per-Transaction E&O
If you’re looking to purchase or renew your real estate Errors and Omissions insurance for your real estate or mortgage brokerage office, you may want to consider a…
How to Advise Buyers of FIRPTA When Purchasing from Foreign Sellers
Many real estate agents representing buyer clients have come across properties being sold by a foreign person -- or someone who appears to be a foreigner. You may…
The Threat Next Door: Why Your Clients Need To Know About Bothersome Neighbors Before They Buy
In the 2014 movie Neighbors, Seth Rogen and Rose Byrne play new parents who move into a new neighborhood. The house next door happens to be a fraternity…
Avoid a Lawsuit as a Dual Agent Selling Your Own Home
You’re ready to sell your house. Good thing you’re a real estate agent. You can represent yourself—and maybe the buyer, too (depending on your state)—streamline the process, and…
Is Zillow’s Joint Marketing Program a Violation of RESPA?
Increasing Scrutiny of RESPA Violations Joint marketing activities between real estate agents and lenders have been the subject of inquiry by governmental authorities as a potential violation of…
What to Do When the Tenant Will Not Allow Access During Your Listing?
Do you know what to do when a property is listed for sale with a tenant on the property and the tenant refuses to cooperate with requests for…
How to Handle Being Misnamed in a Real Estate Lawsuit
Getting hit with a real estate lawsuit is stressful—even when you shouldn’t have been named as a defendant. Recently a CRES client received a solicitation letter from a…
Why a Listing or Selling Agent Should Buy the Home Warranty
Anytime a home is part of a real estate transaction, an opportunity exists to protect it with a home warranty plan. For real estate professionals, purchasing a home…
Why Real Estate Agents Shouldn’t Answer Tax Questions from Clients
It’s important for real estate professionals to go the extra mile for clients. But where do you draw the line? While you (of course) want to be a…
How to “Fire” a Difficult Real Estate Client
Over the last several years I have seen more and more of my real estate agent clients become frustrated in their representation of sellers or buyers. Sometimes it’s…
Understanding the Earnest Money Deposit in Real Property Sales
What Is Earnest Money And Its Purpose? Earnest money is cash deposited by a buyer to a seller into escrow (in states that use escrow), demonstrating the buyer’s…
What is a Seller Carryback? How to Protect the Seller and Yourself in a Seller Carryback Transaction
Seller carryback financing is when the seller of a given property acts as a lender for a buyer on the seller’s property. The end result is that the…
FEMA and Flood Zones: Real Estate Agent Frequently Asked Questions Answered
When selling or buying a property in or near a flood zone, all parties associated with that purchase will have questions, concerns and mandates. These parties are the…
What To Do When Your Client Is In Contract and Does Not Want To Close?
Buyer’s (or seller’s) remorse becomes a legal issue when the buyer or seller does not want to close after they are under contract to buy or sell. This…
A Property Manager’s Guide to Successful Property Management Agreements
Many real estate professionals have diversified their business models and become involved in real estate property management. This has been an excellent source of revenue for these professionals,…
Multiple Offers: How to Reduce Your Risk of a Real Estate Lawsuit
While multiple offers are certainly enviable for listing agents, they also increase the risk of a real estate lawsuit when certain steps, procedures, and laws are not followed.…
How to Avoid a Real Estate Lawsuit When MLS Gets Things Wrong
Using a multiple listing service (MLS) has benefits for agents, but what if your MLS gets information wrong? Let’s look at how you can protect yourself from a…
Real Estate Electronic Client Communication: Best Practices to Avoid E&O Claim Situations
Did you know that even a text message between you and a client can be used as defense a should a real estate E&O claim be filed against…
Case Study: Creation of an “Associate Licensee” and the Duty to Investigate and Disclose – Horiike v. Coldwell Banker
Real Estate Agent Fiduciary Duties Ruling In November 2016, California’s Supreme Court affirmed the Appellate Court’s decision in Horiike v. Coldwell Banker (2014) 225 Cal. App. 4th 427.…
How to Protect Yourself from a Seller’s Unpermitted Rental Unit During a Sale
Unpermitted rental units and their tenants can pose a risk to real estate agents and brokers. If a buyer can prove that they thought they were purchasing a…
Document Management Tips to Avoid Costly Real Estate Lawsuits
Failure to keep a client’s information secure is one of the top claims made against real estate agents today. The average direct cost for a data breach is…
Plumbing Problems? How to Avoid a Real Estate E&O Claim
Have you ever been in this situation? The inspection looked good, but it turned out there were major problems that went unnoticed. When the buyers found out, they…
When the Septic Hits the Fan: Colorado Specifics
In Colorado, new regulations were enacted regarding septic system requirements that every real estate agent and broker must know. Many other states have not yet put these types…
When the Septic Hits the Fan
Over the past few years, a new breed of real estate malpractice litigation has surfaced: septic system permitting and inspection disputes. Due to increased septic system regulations, several…
Avoid Claims When Selling Homes with Leased Solar Panels
Thanks to government tax incentives, leased solar panels are being installed on homes at a rapid pace. This is great for our energy environment, but presents increased real…
What Happens When Property Managers Aren’t Added to Landlord Insurance Policies?
Are you covered by somebody else’s insurance policy? If you are a property manager, you should be named as an additional insured on all landlords’ insurance policies. Don’t…
Common Housing Issues that Cause Real Estate E&O Claims
Put yourself in a buyer’s shoes for a minute. You’ve found your dream house. You make an offer that’s accepted. You’re so excited. And then that dream turns…
Expanding Your Real Estate Services? Don’t Forget to Expand Your E&O to Cover the Risks
Have you expanded your real estate services since you last renewed your real estate E&O insurance? Are you sure you have coverage for everything you’re now engaged in? …
Do You Need Your Own Real Estate E&O Insurance Policy? Firm vs. Individual
Even if your firm carries amazing real estate E&O insurance, there can still be gaps, limitations and exclusions. These potential gaps vary from firm to firm based on…
How to Avoid Real Estate Phishing Scam Cyber Attacks
What would you do if you got an email message like this: Subject: Re: Offer Attached is the copy of my clients offer, I wait to hear…
How to Customize Your Real Estate E&O Insurance to Get Exactly What You Need
Odds are that you don’t need every type of coverage that a real estate E&O insurance policy could include. For example, a real estate appraiser who doesn’t perform…
Don’t Try to Resolve Real Estate Issues that Could Become E&O Claims on Your Own
Have you ever received a call from unhappy buyers because of misinformation in an MLS listing? Trying to deal with issues like these can be a big headache—and…
Avoid Real Estate E&O Claims Resulting From Agent-Owned Property Sales
Real estate professionals have an inside track when it comes to buying and selling real estate for their own interest or investment purposes. However, these Agent-Owned Property transactions…
Understanding What Real Estate E&O Insurance Coverage Limits Mean
When you look at your Real Estate Errors and Omissions (E&O) Insurance policy and see “$500,000/$500,000” limits do you know exactly what each number means? When you’re considering…
How to Avoid Real Estate Lawsuits when Working as a Dual Agent
Dual Agency, where the real estate agent is acting on behalf of both the buyers and sellers, can be very attractive to some agents. Not only does acting…
How to Avoid a Real Estate Claim Due to Disclosure Confusion
Has a property you were selling ever received an unfavorable inspection report? You know that you need to disclose negative reports, but how do you do that legally?…
What To Do and Not Do When the Threat of a Real Estate E&O Claim Hits
As a real estate professional you will most certainly cross paths with a potential E&O claim during your career. So, what do you do? What don’t you do?…
Real Estate Listing Marketing — What to Watch for to Avoid a Real Estate Lawsuit
It can’t be stressed enough -- getting real estate transaction details in writing is so critical when it comes to documenting a client’s home sale or purchase. Emails,…
Why You Shouldn’t Buy Real Estate E&O Insurance from a General E&O Company
Real estate E&O insurance is unique from other types of business insurance. Each real estate transaction can present a different set of risk considerations, challenges and regulations to…
How to Be Protected From Real Estate Open House and Showings Lawsuits
Did you know that most real estate E&O insurance policies don’t offer coverage for claims that arise due to injuries or property damage at open houses and showings?…
How to Reduce Your Real Estate E&O Insurance Deductible
A retention is your total out-of-pocket expense paid before your insurance kicks in. The retention limit on your real estate E&O insurance policy is going to function in…
Claim Prevention E&O Toolkit: Tools to Avoid a Real Estate Lawsuit
When does real estate E&O insurance protect you far beyond the typical policy? When the E&O insurance actually helps you every day -- with access to claim prevention…
What To Do When Your Words Cause a Real Estate Lawsuit Risk
Misunderstandings happen. Like the time Lisa, a mortgage broker, told a buyer they were “good to go.” Lisa meant that the buyer had submitted everything she needed to…
Legal Review: What Is a RESPA Violation?
The purpose of the Real Estate Settlement Procedures Act (RESPA) is to prevent abusive settlement charges that plagued this country’s real estate industry in the past -- and…
The Benefits and Risks of Home Video Surveillance When Selling a Property
Many homes these days have surveillance equipment ranging from high-tech motion detector and video cameras to so-called “nanny-cams.” Not surprisingly, home sellers use such equipment either to protect…
Your Real Estate E&O Insurance Q and A
Real estate Errors and Omissions insurance and claims prevention doesn't have to be complicated or scary. We've compiled the most common questions about real estate E&O insurance and…
Why Every Real Estate Business Needs a Cyber Security Plan to Combat Fraud
Cyber security is a real and increasing issue for the real estate industry. Because you manage transactions that typically involve hundreds of thousands to millions of dollars, you…
The Significance of the Liquidated Damages Provision in the Residential Purchase Agreement
The vast majority of real estate agents and brokers are familiar with pre-printed purchase contracts for land such as the Residential Purchase Agreement and Deposit Receipt published by…
