When it comes to professionals who are likely to face lawsuits, real estate agents are among the top four on the list. As a real estate agent, you have to expect cases to happen, regardless of how professional you are. Here are some of the most common reasons that you might face real estate lawsuits.
Allegations of Negligence
If you do not perform due diligence and inform your client of all issues with the property or do not perform an inspection, your client could claim that you were negligent. Even if you do your due diligence, however, and remain honest, you could still face negligence accusations if there are any issues with the property you didn’t notice.
Allegations of Contract Breach
Real estate contracts are complicated. When it comes to the terms of sale, you have to ensure that the closing dates are clear, that there are home inspection contingencies and that any extra costs are outlined and explained. If there are any mistakes in the contract, then the buyer or seller could file a lawsuit against you for breach of contract.
Even if you have the best risk mitigation and understand the reason for the lawsuits, you still won’t have adequate protection with professional real estate insurance. Do not wait for the allegations to happen before you invest in insurance.