Why Real Estate Agents Get Sued
Are you a deeply experienced real estate agent who has carved out a niche, or an agent who is just getting started in the business? Whatever your situation is, you know that few jobs bring as many rewards as real estate. Your schedule is flexible, allowing you to spend time with your family, and you actually flourish in stressful, time-pressed circumstances. One stressor no one needs, however, is the threat of financial ruin because of a lawsuit. The failure to disclose material facts is a common reason that real estate agents get sued and why you need real estate agent insurance. It doesn’t mean outright fraud; mistakes cause many instances. Here are some examples of why agents get sued.
Failure to disclose material facts
This could be as simple as you forgetting to tell clients that a house had been treated for termite damage. Likewise, if you didn’t tell clients that a murder or suicide occurred in the house in the past couple of years, you could be in trouble. Water damage and mold contamination are other common issues, as are boundary disputes, in which the home or land is smaller than you thought it was.
With real estate agent insurance, you pay perhaps about $600 a year and net savings of potentially many thousands of dollars.