Real Estate Industry Notice: Are You Calling Yourself a “Short Sale, Distressed Property Expert?”
Recently I had the pleasure of interviewing a leading short sale attorney who is warning the real estate industry about the potential legal liability of using the words, ” Distressed Property, Real Estate, Short Sale Expert”. Specifically, the use of the word ‘expert’ has potential legal implications that most agents don’t come close to meeting. He warns that E&O insurance companies could drop brokers who allow agents to use the word ‘Expert’ in their marketing. Its common sense that it takes experience before you are truly and expert. Thomas Edison believed that it takes 10,000 hours of experience or practice before you qualify to be an expert. A 2 day training class on short sales is a start, but certainly not what any reasonable person would consider sufficient training to be an expert: A quick Google search of the word ‘Expert” generated this definition:
The term expert is used to describe highly experienced professionals such as medical doctors, accountants, teachers and scientists.Source: Expertise.
Here is a comment from a reader who is also an attorney: (read the entire comment below)
”Most realtors have been ignoring this advice since short sales became popular. I guess time will tell whn the lawsuits begin and realtors find out that their E & O coverage is not going to cover them as they thought. Attorney David Blucher
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Another comment from a reader: (read the entire comment below)
“I think the issue here is fairly simple. If you claim to be an “expert,” you are setting yourself up for a higher level of liability because the client could claim to have selected you based on your purposrted “expertise”. Mr. Summer.
The question you need to ask yourself is this: If you were involved in a law suit over a short sale and the judge asked you, “what qualifications or experience do you have that makes you a short sale, distressed property expert?” would you meet the grade? Watch this video:
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