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Best Practices- Don't Get Sued!

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Real Estate Agent with Remax Services 3122573

Best Practices- Don't Get Sued!1

Even when you think you've followed all the rules, you can still find yourself facing a lawsuit. Most often, experts say, Sales Associates have made a mistake that falls into one of five basic categories:

1) Stick with what you know.    Associates can easily make a mistake when they attempt to work outside their normal area of expertise.

2) Don't assume anything.  The most common cause of complaints, experts say, is a misunderstanding about some material matter related to the property-- allowed uses, the age of a home, the character of the surrounding neighborhood--especially taxes & insurance.

 3) Pay attention to details.    Even if you're inheriting a listing that's already in the MLS, double check the information in the listing and have the Seller sign the MLS data sheet.

 4) Know how to handle money.    The regulations about how escrow funds can be handled are very strict - make sure you know the rules.

 5) Don't pretend to be a lawyer.    Attorneys recommend that associates do no more than fill in blanks in forms and contracts --if amendments are needed, get a lawyer to draft the language to ensure that it's will mean what you intend it to mean if it's challenged in court.

Posted by

 


Kathy sells South Florida!

Kathy Hyatt, CRS-ABR-GRI
South Florida REALTOR®
RE/MAX Services 
(954) 347-0244

Comments(11)

David Slavin
Keller Williams Premier - Katy, TX
CDPE, ABR, SRES Keller Williams Premier

Even if you do everything right, you can still be sued.  My sister is also a Realtor and she listed a property that previously had mold and it was remediated.  The sellers never told her about it and the didn't disclose it on the seller's disclosure.  The buyers found out about it 6 months after buying the house and sued everyone.  She and the sellers were found guilty.  Why the Realtor should have known about the mold without ever living at the property is beyond me.

Aug 02, 2008 03:08 PM
Eric Reid
Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

And when in doubt do not be afraid to '"back out"

Or as the old saying goes you need to know when to hold them and when to fold them

Aug 02, 2008 03:12 PM
Mary Jo Schaffer
Sweetheart Realty - Bandera, TX
Bandera Texas Real Estate

Several years ago I sat in on a jury trial of a real estate broker from our town.  As the attorney was polling the jury pool I was amazed at how many potential jurors raised their hand to the question, "How many believe that the realtor inspects the property before they take a listing".  There is so much the public misunderstands about what we do and what we don't do, it's scary.

Aug 02, 2008 03:26 PM
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

Kathy ,

This is an excellent post and one that every Realtor must consider!

Thanks

Tom Davis

World Class DE Realtor

 

 

Aug 02, 2008 03:29 PM
Denise Shockey
RE/MAX Aerospace Realty - Cocoa Beach, FL
Cocoa Beach, Brevard County Florida Real Estate

Kathy, awesome post with some very wise advice.  These points could save us a great deal of trouble!

Aug 02, 2008 04:14 PM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

All great advice. It is not wise for someone to get in over their head.

Aug 02, 2008 04:41 PM
Jack Climer
Jack Climer Realty, LLC - Springfield, MO

Good advice, I am passing this on my agents.......you ever got in trouble for anything you ever said......

Aug 02, 2008 04:45 PM
Kathy Hyatt ~Plantation, Davie, Sunrise REALTOR
Remax Services - Plantation, FL
Broward Realtor Selling Plantation,Davie & Sunrise

You know Jack, I am always kidding with my Broker in regards to his E & O Policy and that he should make sure he has sufficient coverage with me in his employ.  (Sometimes he laugh)

Aug 03, 2008 01:04 AM
Mark Hyatt-
Fort Lauderdale, FL
Difference Between Close and Closing!

It seems like I hear almost hear daily on the News Stations that someone is suing someone.  Hopefully people will read these tips and keep out of trouble.   

Aug 03, 2008 12:58 PM
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management

Kathy,

Thanks for the post. Unfortunately, as has been stated, doing a good job doesn't preclude from being included in a lawsuit. In point of fact, even if you are exonerated, there is the cost of legal representation, that in some cases exceeds the commission on the transaction. 

Aug 04, 2008 12:03 AM
Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

Kathy good post!  They are good things to keep in mind!

Aug 04, 2008 07:18 PM