Claim Prevention & Risk Management
How to Avoid 3 E&O Claims Against Real Estate Agents Representing Tract Home Buyers
Tract homes and communities often appeal to first-time homebuyers. Buyers like the idea of selecting a floor plan, exterior design, interior finishes, and color palette in a brand-new home. The risk lies with the first-time buyers’ inexperience in the home buying and negotiating process. They are often unaware of the extra diligence required in aRead More
Money Laundering in Real Estate: How it works, how to identify it, and how to report it
Real estate money laundering is not a new problem in the United States. According to the Financial Action Task Force on Money Laundering (FATF), the real estate industry is particularly vulnerable. The US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) agrees. Various programs and crackdowns aimed at identifying the true origins of funds areRead More
How to Keep a Verbal Easement from Turning into a Lawsuit
Have you represented a property with a verbal easement? If so, did the buyer or seller get an Improvement Location Certificate (ILC)? If not, you could end up with a headache – or a lawsuit. We’ll share an agent’s actual experience and show you the best way to handle past and future sales. Recently, CRESRead More
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 on the phone. It’s a real estate lawyer, and they have some challenging questions for you. Don’t panic. Here is what you need to know before youRead More
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, may spread negative reviews or sue. The reality is that things go wrong or problems crop up even when you’ve tried to do everything right. So howRead More
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 client was the selling agent who assisted a buyer with a purchase that included an $85,000 carryback loan. The seller later contacted the selling agent, asking ifRead More
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 law firm alerting him that he was a named defendant in a real estate lawsuit. Since our client is not the owner of the real estate companyRead More
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 lead to lawsuits. That’s why you want to get support early in the process when there is still time to help prevent claims and potential litigation. CRESRead More
Permit History Reports: A Tool to Prevent Real Estate Lawsuits?
You may have discovered that Permit History Reports can be difficult for real estate agents to access. Typically, you have to check with city and county offices depending on the type of work done. This can be so time-consuming for a busy agent that it may seem impractical to generate your own Permit History Reports.Read More
Report a Potential Real Estate E&O Incident Real-time to Reduce Risk of Coverage Denial
Understand Your Real Estate E&O Insurance Has your claim ever been denied for failing to meet the reporting requirements under the policy terms? One common reason a claim is denied is for an insured’s failure to meet the reporting requirements. Real Estate E&O is a very unique and specific policy where the claim has toRead More