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!

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!

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!

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!