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How much do you want to spend to prove that a lawsuit is frivolous?

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119

A recent real estate transaction reminded me of a few things we need to keep in mind whenever we deal with the public.  This deal was a simple purchase, but it turned into a nightmare right up to the closing table. Ironically, it has made me a better Realtor.  Here's what I learned that might help you in your business:

  • If you are a Realtor or a real estate broker, that's all you are, period.
  • You are not a contractor.  Ironically, I am a licensed contractor, so seeing something and talking about it is something I can chose to do, but if you're not a professional in two fields, please keep quiet.  It can come back to bite you.
  • You are not an attorney, unless you're licensed to practice law.  If you don't have a law degree, don't give legal advice, ever!  Refer, refer, refer.
  • You are not a mold remediation specialist.  Don't even say, "That looks like mold, if you're not 100% sure."  Save yourself and zip it, and refer to the professionals.
  • You are not a plumber, electrician, HVAC technician or a builder unless you're licensed to prove it.  Don't offer any THOUGHTS or ADVICE in these fields if you don't know 100% what you're talking about.  It's for your own good.
  • Don't agree with, or contradict, a buyer when they are ranting.  It will only cause you pain.
  • Don't promise to do anything you're not 100% willing to do.
  • Don't voice your opinion about a property unless there is good reason or tangible verification of your view in the property.  Don't say, "Well, I don't think a gas fireplace is supposed to act like that," if you're not a gas fireplace specialist.  Just say, "That's not my area of expertise, but if you're concerned, you may want to have a professional look at that."
  • Don't speculate.  Never say, "I think the seller will fix . . . ."
  • Don't offer advice on price.  Let the buyer decide what they are willing to offer for a property.  If they say, "Do you think they will take $. . . . .?"  You can always say, "Well, let's write it up and see how they respond."  Share your comps and let them decide.
  • Choose your words very carefully. In our litigious society, don't ever say anything that you will have to defend in court. Your license is not worth a few dollars.  One mad client can ruin you (and it doesn't always take much to make one mad).
  • Be careful, always.

There were constant threats of legal action in the transaction mentioned above.  I can't think of a single thing that would have generated a lawsuit, but that's not the issue.  How much money do you want to spend to prove that a lawsuit is frivolous?  It's better to keep a tight reign on yourself rather than fork over your hard earned money proving you did nothing wrong.

 

Comments(31)

James Dray
Fathom Realty - Bentonville, AR

Zip the lip but and of course you know there is always one from me.  If someone filed a frivolous suit against me the counter one would have them spinning in circles.  That's just me

Jan 11, 2013 07:26 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks, Rebecca.  This last sale was a great reminder to keep it tight.

Absolutely, Michelle.

James, I like the way you think.  8-)

Jan 11, 2013 08:59 PM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

I think I say stuff like this every day. When I first started, a great broker told me to be the source of the source.  Give them the direction to get the right answer if it lays outside of my expertise.  It has been great advice and "touch wood" I have avoided litigation.

Jan 11, 2013 10:50 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

This recent sale has been a great example of how litigious people are becoming.  Got to play it safe, Kathryn.  That was good advice from the broker.

Jan 11, 2013 10:59 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

I was sued because I actually saved my client/property owner $$$ by having the knowledge that repairing their damaged garage door would cost MORE than a newer one because of the age of the parts and panels.....not going to do THAT again

Jan 11, 2013 11:34 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Oh my, Wallace.  I have that repair to make on a clients garage door right now.  Oy!  Maybe I should just call a garage door company to give them an estimate and do the service.

Jan 11, 2013 11:39 PM
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

This is an excellent post, Mike -- just some great reminders. But I have to say it is awfully easy to "slip" and say something we probably shouldn't.

Jan 12, 2013 04:30 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Yes it is, Peggy.  After watching this past client, I'm zipping it tight.  8=)

Jan 12, 2013 04:36 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

It's sad but true.  I have to make it clear when dealing with a buyer that we are not licensed in: law (there are a few agents that do have law degrees, as you mentioned), construction, updating. 

Jan 12, 2013 08:26 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

It is sad, Carla.  Even if I know something, I hesitate to speak about it if I'm not licensed and insured in that area.  We're in a sad time, but I do know real estate.  So, I can talk about that all day.  8-)

Jan 12, 2013 09:59 AM
Frank Laisch
Orlando, FL
"The Insurance Guy"

Mike, Great post, These are all very important. I have posted several blogs about documentation and Knowing what hat to wear in the transaction. one transactions is not worth losing your license over

Jan 12, 2013 08:49 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Jan 12, 2013 09:36 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks, Kathy.  It's always nice being included in your Sunday page.

Jan 12, 2013 10:38 PM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Know what you know and know what you don't know...pretty simple way to stay out of trouble.

Jan 12, 2013 10:53 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

It should be, Gary. 

Jan 12, 2013 11:04 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Hi Mike,

Somehow I missed this post! I'm coming over from Kathy's Sunday morning post on her Ah-ha moments for the week! She was certainly right this post offers sound advice that all agents need to follow..choose your words carefully!!!

Jan 12, 2013 11:34 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

People hear what they want to hear and I make sure I am very clear when it comes to many things. Legal opinions is one of them. Even if you state your not an attorney and then proceed to dialogue making legal points, you are leaving your self open to challenge. Your other examples are good ones to...good post for the business

Jan 12, 2013 11:56 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

It is so easy for new agents to confuse their own roles . .

and stop themselves from being eager to provide possibly bad information

 

Jan 13, 2013 02:56 AM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Mike, sounds like this was a difficult transaction. There are those who have the time and money to sue. There are those waiting for us to say something they can use later against us. One of my client's homes had a broken water shut off valve. It ended up being an easy fix anyone could DIY, but in a transaction when it became an issue it had to be fixed by a licensed plumber. Good reminder to keep the lips zipped.

Jan 13, 2013 07:42 AM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Mike-I think sometimes agents, in an attempt to be helpful, over share and provide opinions outside their expertise. That's a sure fire way to get in trouble as you post explains.

Jan 13, 2013 08:03 AM