Commercial Real Estate Agent Professional Liability Needs
There’s been some good news for the commercial real estate industry recently; Investor’s Business Daily recently reported that lenders are increasingly looking to finance commercial properties as the market continues to grow. For agents & brokers looking to take advantage of this recent development, it’s essential to review their risks and ensure their Commercial Real Estate Agent Professional Liability policy is up to date.
In addition to ensuring they are financially protected, what else should your clients in this sector be aware of? As you likely know, real estate law is complex; and not following the law or not being educated about real estate law can lead to some huge risk exposures. For example, it’s imperative to remember that these laws vary by state, so your clients have to be well versed in the ins and outs of their specific locale.
In one National Association of Realtors report, real estate lawyer Jim Hochman stated that two of the most common legal pitfalls that commercial real estate brokers fall into are failing to clarify who they represent as a broker, or failing to accurately represent details concerning the property in question.
Working in real estate means that your clients are trusted with their customers’ most valuable assets; their properties. Due to such high stakes, professional liability or E&O lawsuits do certainly occur. This can happen not only because of the two factors mentioned above, but also due to an agent’s failure to meet a client’s expectations or their failure to correctly document their decisions or actions.
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