Today I had to make a call to a party having nothing to do with my real estate business. During the course of the conversation I was asked to disclose my profession. As soon as I told him I was a REALTOR, he brought up the California Suit, asking if I had heard of it and what I thought.
At first he seemed to take the side of the buyer, and then he asked me questions about price disclosures. He went on to tell me that his "sister" (yea right) had probably overpaid for her house. I asked why he thought that and he said because shortly after she closed, she wanted to get a second mortgage and could not because there was not enought equity in the house. He was also wondering if I thought the case had any merit. To which I promptly replied NO.
I wonder if others are having questions from the public as well? Adequate and full disclosures have always been forefront in my business practices. However, I think from now on I may have to keep a better record of what comps, etc. I give buyers I am working with.
Should the plaintiff in this case prevail, we may be in for a frenzy of suits from all the trial lawyers. We may find ourselves in a position where E&O insurance may not cover us.
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