Real Estate Agents Require Professional Liability Coverage
As a real estate agent, you are on the front lines when it comes to dealing with buyers and sellers. Your primary goal is to satisfy the needs of your client. When it comes to purchasing a home, the buyer has a right to know about any conditions that might need to be addressed. Only then can they make an informed decision as to whether to make the purchase or seek another property.
You, in turn, must provide full disclosure of any relevant facts that you are aware of pertaining to the property. By not doing so, you are opening yourself up to liability claims for misrepresentation, among other possible negligent acts. Massachusetts Insurance Agents can help you obtain real estate professional liability coverage to protect you under these circumstances.
Liability issues can also damage your reputation
A seller of the commercial property is obligated to disclose any material facts or latent defects known to the property in question. Any structural issues or problems, such as infestation, will certainly affect the value of the property. If the buyer can prove that vital information was not disclosed they might decide to litigate and name the real estate agent in their suit. Even if you were unaware of any such discrepancies your business could suffer from the negative effects of the claim.
Such claims are usually the result of a client believing that there was a breach of fiduciary duty and also negligence. The claim could state that the buyer of the property relied on the representations of the agent that the property was in good condition, only this was not the case. As a result, if they incurred repair costs driving up the cost of the house they bought, which may also include future repair costs for issues never made apparently, a judge would probably side with the plaintiff in the case.
Other issues can also sour a deal. For example, a real estate agent may not have known about the need for permits in relation to a property they are representing.
After the close of the sale, if the buyer discovers that an additional room built onto the property didn’t have proper permits required by the county, they’d be legally responsible for the reconstruction of the addition.
Real estate agents are vulnerable to negligence claims even as a result of things they have no control over. Real estate professional liability insurance from Massachusetts Insurance Agents can aid you against claims of this nature.