Best Practices- Don't Get Sued!
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.
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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.