Question

What rules should brokers follow to decrease the possibility of lawsuits?

a)Property inspection rules

b)Office policy rules

c)Licensing rules

d) Agency disclosure rules

Answer 1

a) Property inspection rules

Real estate agents are often the target for lawsuits. The dispute scenario involves a property buyer suing the seller and the seller's agent for not showing deficiencies in the property. In some cases, the buyer also sues his own agent in the transaction. The lawsuit alleges not only negligence, but also claims that sellers and agents spoke out to maintain confidentiality in order to facilitate higher-priced sales and higher commissions.
Buyers can also file a disciplinary complaint against the agency. Complaints threaten not only the monetary risk for agents, but also the risk of losing their professional licenses. Agents may be forced to defend themselves in two platforms simultaneously.

In most cases, lawsuits and appeals are highly protective. There is usually no conspiracy or conspiracy with the seller so as not to expose existing flaws in the property. Agents may not be aware of unprotected disabilities. At best, the seller may be to blame.