Real estate agents are responsible for high-value deals, meticulous legal documentation, and a multitude of clients, often all at the same time. They are also committed to providing the highest standards. As such, they have to adhere to a number of laws and regulations.
Things That Get Real Estate Agents Sued
Real estate agents are particularly vulnerable to being sued. Sometimes even minor blunders have the potential to cause major legal problems. To mitigate these potential risks, real estate agents must be extremely diligent in their job and be knowledgeable in all legal aspects pertaining to their field.
Any real estate attorney in Houston will recommends having a legal team to whom you can turn to for advice and legal assistance. This article will highlight five reasons why real estate agents are frequently sued.
1. Breach of Contract
Real estate brokers frequently run into legal issues as a result of contracts. Clients may press charges if they suspect the real estate agent violated the contract’s provisions. To avoid this problem, get your contracts reviewed by a lawyer to ensure that they are legitimate. Additionally, you should go through them with all of your clients to ensure that everyone is on the same wavelength.
2. Breach of Duty
Breaking contractual obligations is one of the most common legal claims brought against real estate agents. This alleges that the real estate agent failed to act in the best interest of the client, as they are mandated to under law. A breach of duty can occur as a result of carelessness or intention.
Keeping meticulous records of everything you’re doing and maintaining an unwavering commitment to honesty can help you avoid being the target of a breach of duty claim.
3. Failure to Disclose Defects and Flaws
Real estate agents have a responsibility to provide their clients with factual information concerning any defects and flaws in the residences they are interested in purchasing. Defects such as poor construction, wall cracks, noise pollution, the existence of lead-based paint, the existence of mold, and a variety of other issues could be present.
Due to these reasons, clients may file a lawsuit against a real estate agent for any defect they claim the agent was aware of but failed to mention. Always carry out a thorough inspection to uncover any potential problems, and make a note of anything you discover. After that, you can have the client fill out a form confirming that you informed them of the defects.
4. Data Protection and Security
In every industry, cybersecurity has now become an essential consideration.
Given the fact that real estate agents obtain personal data from their clientele, they can be held responsible if that information is stolen. Therefore, it is critical that real estate agents maintain a high level of data security.
Try to ensure your security protocols are updated, that your data is encrypted, that you alter your passwords on a regular basis, and that you store hardcopies of the data in a safe place.
5. Client Deception
Clients who believe their real estate agents have deceived them, be it through commercials, verbal statements, or deeds, are well within their rights to file a lawsuit against them. The law stipulates that all of the photos and videos in advertisements be accurate.
A property’s features are often overstated for the purposes of luring in potential clients. And perhaps some real estate agents do this without even realizing what they are doing. However, you should consciously avoid exaggeration, and communicate in the most concise and straightforward manner possible in order to avoid misinterpretation. Besides, your highest priority should always be acting with integrity.
Taking precautionary measures could really prevent you from getting sued and streamline the process. To safeguard your clientele and yourself, you must adhere to the set rules and regulations. Verify all relevant laws and ethical standards to ensure you can abide by them.
Moreover, any issues or questions about the law should be handled by a legal team.