How to Reduce the Risk of New Agent Mistakes

New real estate agents are understandably eager to get out and start building their business as quickly as possible. There’s no time to waste in today’s robust market. While it can take years to build a solid client base and credibility in the industry, one honest mistake could wipe it all out in one fell swoop. And costly legal fees can wipe out the bank account to boot! It’s estimated that 20 percent of real estate agents have had a lawsuit filed against them. Right from the get-go, new agents should be well aware of simple misunderstandings and oversights in the business that could get them in serious hot water. Here’s a few tips to pass on to new agents as they move forward in their real estate careers:

Put Safety First

The risk of an unforeseen accident involving a visitor on a property is always a worry. Something as simple as someone tripping on a wire or stepping on a nail during an property tour could turn into a headache for a new agent. General liability insurance can prevent agents from paying out of pocket for accidents and many companies will even appoint an attorney if necessary.

Always be Totally Transparent

When all is said and done, buyers can stir up trouble if they feel like they may have overpaid for their home. The agent can be accused of negligence for not properly researching comparable sales to calculate the home’s value during the offer stage of the transaction. This can be avoided by being fully transparent at all times, especially with the bidding wars that are so prevalent in today’s strong real estate market.

Be Clear with Conveyance

Itemize like crazy! Everything conveyed in the sale of a home should be listed simply and clearly so that all parties are on the same page. Does the outside hot tub on the patio stay? What about the microwave? Washer/dryers? While it’s normally status quo for many appliances to stay, they should still be included on the itemized list. If you are ever unsure of what is considered a fixture that conveys, be sure to itemize it on the contract! Inadvertently promising items that the seller isn’t planning to part with could lead to an ugly lawsuit.

Always Disclose

It’s a real estate agent’s job to disclose details of a property. While laws vary in every state, common disclosures include water damage, zoning issues, hazards such as asbestos or lead paint, and if there has been a death on the property. Some states even require disclosure of alleged ghosts or paranormal activity on property. Failing to do so could come back to haunt an agent with a costly lawsuit.

Never Discriminate

It is common for real estate agents to be wrongfully accused of discrimination. They can be sued over claims that a home was not shown or sold to someone due to race, color, religion, sex, handicap, sexual orientation or gender identity. Real estate agents should familiarize themselves with the Fair Housing Act to prevent being accused and potentially sued for discrimination.

For information on insurance for real estate agents, go to: RealShieldInsurance.com