Review MLS Listings for Errors to Avoid Complications
Many Errors & Omissions claims can possibly be avoided through simple review of paperwork. Be sure any time you are listing a house to check your facts on the property so that you don’t misinform potential buyers. Lawsuits can happen any time, even after half of a year—as in the case of this real-life claims scenario!
Improper MLS Listing Creates Stir with Local Board
A Real Estate agent listed a home for sale and published information in the MLS indicating that the property was connected to the municipal sewer system.
Problem
This particular agent had listed and sold the same property five years earlier and knew it was serviced by a private septic system. However, when completing the MLS form, he inadvertently marked the wrong box. The eventual buyer of the property discovered the mistake approximately six months after taking possession when the septic system failed. The buyer alleged that the agent deliberately misrepresented the type of waste system in order to obtain a commission from the sale.
Mistake
The agent failed to double check the information that was to be entered into the MLS.
Result
The buyer filed suit against both the agent and the seller of the property. The local real estate board also took disciplinary action against the agent.
Prevention
If the agent took a moment to carefully review the information in the MLS, the error would have been avoided. Being an experienced agent in the community, the agent should have realized that there was no municipal sewer system where the property was situated. Also, the MLS information he completed in the sale five years earlier correctly denoted that the property was serviced by a septic system. Unfortunately, the problem was compounded by the fact that the hard pan soil surrounding the house could not accommodate another septic system. A new above-ground system had to be installed, which required frequent pumping. The property also had to be re-landscaped in order to disguise the new septic system. A simple clerical error on the part of the agent resulted in a settlement in the tens of thousands of dollars.
Do you have a similar story involving MLS listing errors to share with us? Send us your learning experience or just let us know what you think about this one! Just leave a reply below!
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