Over time, real estate agents and brokers are being held to ever-higher standards of practice. Your exposure to liability and lawsuits is growing. Can you recognize the types of clients that seem to make the best plaintiffs in suits against real estate professionals? You may still choose to work with a client, but it's wise to know when to be extra careful.
1. Are they bashing other real estate professionals?
We all know that there are always bad apples in every profession. It's not inherently bad for someone to mention poor past treatment either. However, consistent complaining about mistakes or poor practice by other real estate agents or professionals could indicate a negative bias that can burn you later.
2. Is someone pushing you to act unethically?
This can be a prospect, client, mortgage broker, another agent, or even an attorney. Even if you resist the specific act, what might they be doing that will get you sued in the transaction?3. Are they complaining about being ripped off?
You're already in the transaction, and your client is stating that they feel cheated in some way. This can happen during inspections and repair negotiations. Be very clear as to their options, particularly their option to quit the deal. Too much concentration on" getting the deal to closing" can cause second thoughts and lawsuits later.4. Is someone trying to get around the rules?
If your prospect/client is asking questions about getting around mortgage qualification requirements, zoning rules, etc., don't participate in those discussions. You might want to reconsider working with a prospect in this category.5. The Digital Paper Trail - A Book About Liability for Real Estate Professionals
Oliver Frascona, Esq. is a real estate attorney and noted lecturer to real estate professionals around the country. He instructs on liability issues in the practice of real estate. See my review on this book here.
