Insulating Against A Law Suit

Generally most of my posts are adaptable to sales in any industry. Today I am specifically addressing real estate sales. If someone practices real estate very long, they will face legal issues; especially if they sell a lot of real estate. There is a very simple explanation for it too. It’s impossible to please everyone, and especially, if you represent both the buyer and the seller. In this type situation the buyer feels like the seller took advantage of them, while the seller feels like the buyer took advantage of them. As a Realtor® who is wedged between both parties thinking the agent showed partiality to the other party in the transaction. To complicate matters worse, in a typical real estate sales transaction there are numerous entities that have specific requirements and guidelines that must be followed.

Managing Your Risks

Generally most of my posts are adaptable to sales in any industry. Today I am specifically addressing real estate sales. If someone practices real estate very long, they will face legal issues; especially if they sell a lot of real estate. There is a very simple explanation for it too. It’s impossible to please everyone, and especially, if you represent both the buyer and the seller. In this type situation the buyer feels like the seller took advantage of them, while the seller feels like the buyer took advantage of them. As a Realtor® who is wedged between both parties thinking the agent showed partiality to the other party in the transaction. To complicate matters worse, in a typical real estate sales transaction there are numerous entities that have specific requirements and guidelines that must be followed.

In most real estate sale transactions there are two separate agencies involved. 

More times than not one agency will have the listing and represent the seller while the other agency will represent the buyer. [Read more…]

Managing Risk Saves Realtors

RISK CAN BE COSTLY

The practice of real estate is a very legalistic business and we take our jobs far too lightly. I think one of the reasons is because we haven’t had a transaction that ended up in litigation. In all my Risk Management CE classes, I use this illustration; “When you driving down the road and you’re speeding, then you look in your rear view mirror and see a blue light flashing, it’s too late to be concerned about how fast you were going.” The damage is done. You knew the speed limit, and you knew if you were caught speeding, you would suffer the consequences. The same thing is true in real estate.

As licensed real estate agents we are supposed to know the law. When we are licensed we set ourselves apart as professionals in the real estate industry. That license signifies to the consumer that you have been educated, passed extreme examinations, properly trained, and that you are qualified to assist anyone when buying or selling real estate. The consumer should but seldom does, interview an agent before employing them to find out if they have sufficient expertise to represent their best interest.

When a real estate agent looks in the mirror, they should see an invisible phrase branded on their forehead that says, [Read more…]