How Should A Real Estate Agent Avoid A Lawsuit?
Like moths to a flame, real estate agents are frequently visited by legal notices. It happens everywhere- doesn’t matter if you are buying property in Israeli or in America. The usual scenario that plays out is that the seller and his agent, is being sued by the buyer of the property for not disclosing defects and damages. The lawsuit doesn’t stop there, but might also allege that it wasn’t only negligence but the intentional action of the seller and their agent conspiring to hide the defects and facilitate for the sale at a higher price- higher the price, higher the agent’s commission.
On top of that, the buyer may even throw in a disciplinary grievance on the agent, which not only threatens financial risks to the agent but also the risk of losing his or her professional license. Defending lawsuits are expensive, plus the reputation of the real estate agent is left crumbled if the verdict doesn’t come in his favour.
There are some precautions that can be taken to reduce the professional liability that a real estate agent may be putting them in:
- Have Good Communication
The communication channels must be open, and the client must be assured that they are the top priority. This means that they are kept up-to-date regarding the bods, contracts or purchases within a span of no more than 24 hours. If you made a call, then the agent must immediately send in a mail to confirm what was discussed on call and what way the agreement was moving forward.
Having a record and documenting is key to ensuring no lapses on your part-whether it be copies of letters and emails or dates noting the calls. This ensures that there is an accurate record of the communication, which is crucial to any defence.
- Avoid Difficult Clients
Are you involved with a client that makes unreasonable demands? Does this client constantly question your every move and scrutinise every aspect? Are they difficult to communicate with? A client, who is prone to angry and irrational behaviour, spells trouble for you in the future if things go sideways.
- Don’t Give Them False Hope Or Expectations
Don’t try to keep your client ‘happy’ by turning the blinds and protecting them from bad news. If there are obstacles that arise at any point, then it is your duty to inform your client promptly. The client may be unhappy, but it is better off than letting the client being unaware. Don’t oversell and raise the expectations- it may come back to bite you hard!