A Realtor whether recently licensed or seasoned may probably relate to some close calls when a client has complained about their proceeding or implied taking legal action against them. Hopefully it has never happened and the experience has taught us to take measures to avoid future transaction mishaps. While having errors and omissions insurance is a must, it is not a guarantee stay out of jail card. We must stay alert and focused on what we say and what we document, when serving a seller or buyer. We are grateful for everything that we have accomplished in 2017 and the clients that are allowed us to serve them; we look forward to embracing 2018 with new opportunities, health, peace, prosperity but most important, love! Below are some some recommendations to follow:
Be a Realtor. Period. Do you think the roof may need replaced soon? Tell buyers to contact a roofer. Does the buyer have a question about the fence, legal property lines and his rights? Suggest they talk to a lawyer. Does the buyer have a mortgage question involving his 401(k), an inheritance and two credit scores? Suggest they talk to a financial planner or lender. If you refer a client to a lawyer, accountant, contractor or other expert and they ask for recommendations, hand them a list of local experts so they can still choose – and make sure that each referral is licensed and insured.
Don't 'wing it' with contracts. You don't want to be accused of practicing law without a license. Just as importantly, however, you don't want to make a legal change that causes problems for a client later or won't stand up in court if questioned. It's just not worth it. Use contracts approved by Florida Realtors or other legitimate sources in all transactions.
If in doubt, disclose. If not in doubt, disclose anyway. Buyers, especially, aren't happy to discover something wrong with a home they just purchased. Review properties before accepting a listing, and if a seller refuses to disclose a major defect, be prepared to walk away. Any commission you might earn is overshadowed by a lawsuit you might face.
Put everything in writing. A worst-case lawsuit scenario: You say one thing, the opposing party says something else, and you both agree that no one put it in writing. If you make an oral agreement, at least follow up by putting it in an email and sending it to all concerned parties. Also worth putting into written form: Representation agreements with clients, agreements to change listing prices and documentation of offers received. Rule of thumb: If you talk about even minor changes during the transaction, put it in writing.
Buy E&O insurance. Don't think of errors and omissions insurance as a safety net that allows you to enjoy risky behavior. In fact, don't think about E&O insurance at all. It's just a fallback in case everything else fails, because even a frivolous lawsuit in which you have no blame will take time away from your core job of selling homes. However, it's important to have E&O coverage because you can't predict what will happen. www.elchomes.com elcrealty@gmail.com
Source: Cody German, a partner in the Miami office of Cole, Scott and Kissane, July 4, 2016
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