Even the slightest mistake by an agent can end up costing him a lot of money and face a terrible lawsuit. Dilip Barot, being into the real estate business for more than a decade now, strongly supports the fact that a lawsuit also causes a lot of stress to the agents and often tarnishes their reputation.
Hence, if you are an agent, it’s crucial to know about the right steps you can take to protect yourself from a lawsuit. Here’s a list of four common ways real estate agents often end up facing a lawsuit and Dilip Barot’s views on how you can avoid them happening to you:
- Not Able to Disclose a Property Defect: If the client discovers some defects after signing the property papers, he/she will be swift to sue you. Hence, Dilip Barot suggests to document if there is any bit of damage or defect in the property. You should ensure to do a thorough inspection of the property and let your client sign a statement that documents he/she is aware of the issues.
- Breach of Duty: Dilip Barot, America’s one of the successful real estate entrepreneur, also says another most common reason for which lawsuit that real estate agents have to face is the breach of duty. As a solution to this problem, he believes that the agents must keep the best interest of their clients in mind, as clients have a special interest in real estate agents for the expertise that they have in their work.
- To Give Legal Advice: It is a common tendency in clients to expect their real estate agents should have an answer to every question that they ask. In the same way, most agents are inclined towards helping their clients.
However, it would help if you remember that most states don’t consider it legal for a real estate agent to give any tax or legal advice. Although, it is one of the most challenging mistakes to avoid as taxes and legalities cannot be avoided in the real estate business.
However, if you give any wrong advice, the client will blame you for the consequences and can end up filing a lawsuit against you. Hence, it is a smart idea to politely request your clients to direct any such relevant queries to a lawyer or maybe a tax professional. - Leading the Clients in a Wrong Way: Dilip Barot says it is a common desire in real estate agents to prove their property is an outstanding one. However, it is always safe to not exaggerate anything too much because a deception like this can end up as a lawsuit for the agent in the future. If a buyer feels he/she has been misled, a lawsuit always follows after that. Hence, you should be truthful about any claims that you make about a property so that there is no chance of any misinterpretation.
Are you a real estate agent?
Avoid the above mistakes, and you can easily avoid a lawsuit too!
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