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Avoiding the nasty.."Litigation"

By
Real Estate Agent with Northwood Realty Services

Why is it uncomfortable to hear something you just do not what to hear?........in our business it is a necessary evil.

We need to be reminded that much is expected from Realtors. The responsibility  of how we handle our business is crucial,  The lack of Professionalism, Integrity and Responsibility  could have have serious consequences.

I attended the   Pennsylvania Association of Realtors District 7  real estate conference this past Thursday.

 

If I must say the only relaxing part of the day was the beautiful grounds and ambiance of the vintage, Victorian banquet facility at the Riverside Inn  in Cambridge Springs,, Pa.

A short 2 hours north on Rt 79, I thought a nice restful day ahead.  ....and it was informational?.......very..

 

The day offered breaks throughout the day. We enjoyed not only the gorgeous day strolling the impeccable grounds but a step back into yesterday.  The Riverside Inn is a historic landmark built in 1885

The covered wrap around porch offered seating for those  of us who loved the idea of enjoying the beautiful summer day.

The district offered two classes,  both speakers,  the best in their field.....but the information...if I must say ...causes us as Realtors to

...a constant WATCH as to how our industry is changing and the realization that we need and will be in a continual learning process.

Our first speaker was James L Goldsmith Esq   who spoke on Real Estate Licensees and the Authorized Practice of Law.

Attorney Goldsmith, an expert in real estate law and an excellent speaker and teacher addressed

  " Avoiding the pitfalls of the Common Residential Transaction"

He highlighted past court cases where agents found themselves in front of a judge defending their actions.

The disastrous suggestion was that a Realtor could loose their license  and have their reputations tarnished very easily. 

Some common reasons for litigation are:  and there are many......

  • Misrepresentation  ( often a complaint )
  • Anti-Trust Laws
  • Agency and Breach of Fiduciary duties ( Pa Real Estate vvery serious about Agency disclosure -

           consumer representation))

  • False and mis-leading adds
  • Respa Violations
  • Disclosure issues
  • False and mis-leading acts

There are many more reasons than mentioned above ....the above a sample of what can bring an agent to court.

We all realize the seriousness of these accusations.  There are those consumers looking for monetary justification for the undue stress with their transaction ...litigation could be rampant.

 A Realtor would be wise to .........

  • documentation ( everything..time, date, conversations, place, remarks )

The Attorney Goldsmith  pointed out,  that at times,  e-mails would be picked apart to help with an agent's  defense.

This was a serious, realization class about... the importance to details concerning how we are to provide service to the consumers who put their trust in our experience to serve their real estate needs.

Certainly we hope Realtors aren't practicing real estate by violating rules, ......there are situations that cause unfair blame on the Realtor....but really ...in a law suite " Who gets called in?  Who gets sued..yep everyone!

Now it is the hands of some one else to defend your case................

I always cringe when a seller or agent offers a  "NEVER" situation

"There has NEVER been any water in this  beautiful  finished basement, why would we have  our computers, sound system, HD TV if we have a water problem.  Anyway we  have  a sump pump?"

BTW   this was a true story...and you know what happened.....

Yep! ..... bad storm.......storm drains failed....electric down...caused ... .no sump pump action ...water in the basement that NEVER had a problem.  

                                             ..end result.....law suite

Lets face it...... we are in a liability, fragile position as agents...anything can happen...even innocently...Now more than any other times we need to be liability conscious and stay free from litigation.    Make sure you document everything..

A simple, innocent situation could turn serious.  Be prepared....Customers need to do "due diligence" but we also need to do our  "due diligence"

 

* Photo credit to Riverside Inn  1 Fountain Inn, Cambridge Springs, Pa 

 

Comments(5)

Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Thanks for a great post. Yes, we live in a litigious society. I document everything on each transaction. All emails are converted to PDF format and transferred to a CD to be put in the file.

May 24, 2009 02:33 AM
Jeani Codrey
RE/MAX Corridor - New Braunfels, TX
Director of Opportunity & Agent Development

You are so right...especially on the documentation part.  I am the documentation queen and keep super detailed files and I still got invited to the "party" through the total negligence of a co-broke agent.  It hasn't gotten me out of the crosshairs but it has helped my part of the case.  We can all use some reminders about practicing good risk management in our daily business.

May 24, 2009 02:34 AM
Kelli~Rhyanne Bartley
Keller Williams Realty Mid~Willamette - Corvallis, OR

June,

Great post!  I learned as an EMT (many years ago) to CYA (document absolutely Everything!!) Have a great weekend!

May 24, 2009 02:40 AM
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

When ever I do something I document it and refer the people where aapplicable to the source and tell them please verify this nformation by contacting    XYZ at

May 24, 2009 03:13 AM
June Lewis
Northwood Realty Services - New Castle, PA
Realtor Northwood Realty - New Castle,Pa Lawrence Co 7247304571

Thanks Harry  for the comment and suggestions  Great idea to convert to a PDF file and transfer information   to a CD

 

Hi Jeani,  It never use to be  that we needed to be so cautious....the world,... it is a changing. Thanks for the comment

 

Hi Charlie Thanks for the comment...good point..the attorney also said to do exactly that.  Have them document what was said.  This attorney made excellent points and advice on what to do to satay out of potential litigation

 

Hi Kelli  Thanks for the input.  It has come down the pike from EMT to home inspectors, now even appraisers.

everyone needs to stand accountable for every action brought forth

May 24, 2009 05:00 AM