Frequent Claims Faced by Real Estate Agents

Frequent Claims Faced by Real Estate Agents

Frequent Claims Faced by Real Estate AgentsIn such a tumultuous and litigious society, real estate agents are no strangers to liability claims. As these claims have seen a significant rise in the last few years, now more than ever it’s imperative to secure your clients’ operations with a Real Estate Professional Liability Insurance policy. Next, share the following information with them to ensure they steer clear of the common pitfalls of the industry.


Fraud includes an element of intent for wrongdoing. Therefore, the plaintiff must prove that the real estate agent acted unlawfully willingly and knew the potential effects of such acts. According to Risceo, the “intentional act” complained of may be an affirmative statement by the real estate agent, or it could be the purposeful withholding of a material fact about which the real estate agent has knowledge.


Law Dictionary defines negligence as a cause of action alleging the failure to exercise due care toward others which a reasonable or prudent person would do in the circumstances. These are different from fraudulent acts as these are committed unintentionally.

Breach of contract.

Unfortunately, sometimes agents breach their duties outlined in their signed contracts. Whether some emergency came up, or a circumstance arose that didn’t allow the agent to complete their contractual duty, these scenarios are common and can lead to hefty lawsuits.


Failing to disclose information about the property or misrepresenting the square footage, features, rental income potential, or other features can land the real estate agent in hot water. Ensure your clients are well-versed on the properties they are showing and prepared to answer detailed questions to the best of their knowledge.

About PL Risk

In addition to bringing you the latest news from the insurance industry, PL Risk provides Resources for Agents and Brokers nationwide. We’ve recently implemented Hiscox Now, which allows agents their own access to Hiscox and instant quoting. To learn more about our operations, contact us today at (855) 403-5982.

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