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Tip 12 of 12 Risk Reduction Techniques for your daily real estate practice

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

Tip 12: Maintain a well-documented file.

A well-documented file should include the date and time of all meetings or phone conversations, emails and faxes, and records of all verified information, contracts, disclosures, waivers, and closing documents with appropriate signatures. It is important to note that you should never sign anything for your clients or customers. (WARNING: Do not destroy your file following a closing. Some states have statutes of limitations of 10 years for breach of contract, and many lawsuits are brought years after a transaction has closed.)

Tip 11 of 12 Risk Reduction Techniques for your daily real estate practice

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

Tip 11: Avoid overstated adjectives.

When discussing, marketing, or otherwise promoting a property, avoid adjectives (such as “renovated”) that could exaggerate improvements to a property. When stating facts about the age or structure of the roof and/or property, be certain the information you are providing is accurate.

Tip 10 of 12 Risk Reduction Techniques for your daily real estate practice

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

Tip 10: Report all claims and incidents to your insurance company promptly.

If you are aware of a potential claim situation or have had a claim reported against you, you must report it to your insurance company immediately. Late reporting may jeopardize your E&O coverage!

Tip 9 of 12 Risk Reduction Techniques for your daily real estate practice

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

Tip 9: Seek Assistance When You’re Not Sure

Don’t be afraid to say, “I don’t know” to your clients if you are not sure about something. It is better to take the time to look up the facts or ask someone who would know the answer, rather than supplying faulty information. Just remember to follow up with them and document your findings in writing.

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

Tip 8: Review the Code of Ethics regularly.

As a REALTOR®, you have agreed to abide by a strict Code of Ethics to help maintain the highest standard of integrity among real estate professionals. To find the most current Code of Ethics and Standards of Practice, visit the National Association of REALTORS website at www.realtor.org.

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

Tip 7: Familiarize yourself with fair housing laws.

Become familiar with and educate buyers and sellers about fair housing laws. Avoid using words and phrases in a discriminatory context in conversations and advertising. Never work with a discriminatory seller or buyer, and provide equal service to all.

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

Tip 6: Follow pre-established office procedures.

Every real estate office and professional should have a set of pre-established procedures to follow during transactions. Be sure to adhere to your office’s pre-established procedures or checklist to ensure you are maintaining a well-documented file.

Tip 5 of 12 Risk Reduction Techniques for your daily real estate practice

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

TIP 5: Never act outside your area of expertise.

Even if a property is new construction, provide a list of professionals for the buyers to hire to inspect the home, test for mold and/or pests, and assess the septic system and well. If the buyers forego these inspections, document that fact in writing and obtain a waiver.

View more risk management materials available to our Real Estate Errors & Omissions customers, including a preview to our E&O Risk Management seminar!

Stay tuned for more risk reduction tips—we have 7 more to post! While you’re at it, check out our other blog posts; we have information on risk management training for your agents, using disclosure forms, what to look for in buying an E&O policy, and more. And let us know if you’ve ever been zinged for something like this—it’s a more common error than you may think! ]]> http://www.realestateeo.com/tip-5-of-12-risk-reduction-techniques-for-your-daily-real-estate-practice/feed/ 0 http://www.realestateeo.com/reduce-your-risk-of-being-sued%e2%80%94tip-4/ http://www.realestateeo.com/reduce-your-risk-of-being-sued%e2%80%94tip-4/#comments Wed, 14 Oct 2009 13:10:09 +0000 Pearl Insurance http://www.realestateeo.com/?p=66

Tip 4 of 12 Risk Reduction Techniques for your daily real estate practice

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

TIP 4: Disclose all conflicts of interest in writing.

Claims filed alleging failure to disclose dual agency typically have a high success rate for plaintiffs and result in sizable settlements. To avoid this type of situation, just remember the Four Ds! Decide whom you will represent. Disclose this to all parties. Document your decision in writing. And Do as you say.

View more risk management materials available to our Real Estate Errors & Omissions customers, including a preview to our E&O Risk Management seminar!

Stay tuned for more risk reduction tips—we have 8 more to post! While you’re at it, check out our other blog posts; we have information on risk management training for your agents, using disclosure forms, what to look for in buying an E&O policy, and more. And send us your real estate horror stories involving conflicts of interest—we want to hear from you! ]]> http://www.realestateeo.com/reduce-your-risk-of-being-sued%e2%80%94tip-4/feed/ 0 http://www.realestateeo.com/reduce-your-risk-of-being-sued%e2%80%94tip-3/ http://www.realestateeo.com/reduce-your-risk-of-being-sued%e2%80%94tip-3/#comments Wed, 07 Oct 2009 13:32:45 +0000 Pearl Insurance http://www.realestateeo.com/?p=62

Tip 3 of 12 Risk Reduction Techniques for your daily real estate practice

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

TIP 3: Provide full disclosure (if material in nature).

Make sure buyers are aware of potential problematic areas. For example, if the vacant lot next door will be developed or if a property tends to flood, this needs to be disclosed to the buyers in writing to help avoid any future allegations.

View more risk management materials available to our Real Estate Errors & Omissions customers, including a preview to our E&O Risk Management seminar!

Please let us know what you think about our first three tips; we have 9 more to post, so stay tuned! While you’re at it, check out our other blog posts; one is regarding using standard forms in your real estate practice—a necessity when it comes to disclosure. And send us your real estate horror stories involving any disclosure problems you’ve encountered or heard about—we want to hear from you! ]]> http://www.realestateeo.com/reduce-your-risk-of-being-sued%e2%80%94tip-3/feed/ 0 http://www.realestateeo.com/reduce-your-risk%e2%80%94tip-2/ http://www.realestateeo.com/reduce-your-risk%e2%80%94tip-2/#comments Wed, 30 Sep 2009 16:10:11 +0000 Pearl Insurance http://www.realestateeo.com/?p=58

Tip 2 of 12 Risk Reduction Techniques for your daily real estate practice

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

TIP 2: Conduct a visual inspection of the property and investigate “red flags.”

Before showing the home, conduct a visual inspection of the property and investigate any “red flags.” Ceiling stains, a retaining wall that is leaning, floors that aren’t level, strange musty odors, excessive black mold that is visible to the eye, cracks in the foundation, and water lines in the basement all scream that there may be a more serious problem. Never interpret property condition, but suggest that the buyer or seller have these items checked out carefully before making or accepting an offer.

View more risk management materials available to our Real Estate Errors & Omissions customers, including a preview to our E&O Risk Management seminar!

Please let us know what you think about our first two tips; we have 10 more to post, so stay tuned! And send us your real estate horror stories involving obvious “red flags”—we want to hear from you!

Controlling your Errors & Omissions should be the mission of all real estate professionals. That’s why we’ve compiled a list of 12 risk reduction techniques you can use to minimize your legal liability and maximize your earning potential.

TIP 1: Obtain a written seller’s disclosure form or waiver.

When drawing up papers for a home or property, always make sure you obtain and review the seller’s disclosure or waiver form. Be sure to verify that the information contained in the report is consistent with what you know about the property and advise the seller to update disclosure as needed.

View more risk management materials available to our Real Estate Errors & Omissions customers, including a preview to our E&O Risk Management seminar!

Let us know what you think about our first tip—11 more to come! We’d love to hear if you’ve encountered a situation involving lack of disclosure or inconsistencies involved.