Reduce Your Risk of Being Sued—Tip 12
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.)
That’s our last of 12 Risk Reduction Techniques! By implementing these simple risk reduction tips, your documents will support your story of the transaction the next time a claim is filed against you—and odds are, the claim will be dropped. Attorneys don’t want to fight irrefutable evidence. When transaction files are complete and contain clear, concise, and accurate information, you are better protected from frivolous claims and can avoid having to pay costly attorney fees and settlements. Make it your firm’s mission to promote loss prevention awareness starting today!
And don’t forget to check out our other Real Estate Errors & Omissions 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, real estate trends, and more. If you have any comments regarding keeping a well documented file or any of our other Risk Reduction Tips, please share them below. We’d love to hear from you!
