For you, nothing compares to the thrill of making that home sale and collecting that check on closing day.
And you’re not the only person who feels this way.
Research shows that more than 440,000 people in the United States were real estate agents in 2016.
However, as exciting as being a real estate agent can be, it can also be risky, as there are many legal hoops you have to jump through.
Here is a glimpse at five legal issues that real estate agents need to be aware of in 2018 and beyond.
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One of the worst things that can happen to you as a real estate agent is that a client believes that you failed to perform in line with his or her contract’s terms.
In this situation, the client may pursue legal action.
A common problem cited in breach of contract lawsuits is that the real estate agent didn’t comply with the contract’s stated time frame.
For this reason, it’s critical that you study all aspects of your contract with an attorney to make sure that the information there is accurate.
During this time, you can identify unclear terms, issues or clauses to decrease your likelihood of experiencing legal action.
As a real estate agent, it’s important that you act in your client’s best interest. After all, your clients trust you for your expertise.
If a client feels that you have been dishonest or have not fully disclosed important details with him or her, he or she could accuse you of breaching your duty due to either intentional action or negligence.
Either way, you may end up being named in a lawsuit.
These are some of the most common issues that real estate agents facing lawsuits deal with.
Naturally, a real estate agent strives to make his or her client’s property appear captivating to would-be buyers. As a result, some agents exaggerate their listed homes’ features and property conditions.
If you are deceptive in this manner as a real estate agent, you may end up in court.
For this reason, it is paramount that you are truthful in the claims you make about your properties and don’t leave room for would-be buyers to misinterpret your claims.
Let’s say that your client believes that you didn’t exercise reasonable care toward him. For instance, he thinks you should’ve known certain information but didn’t and therefore didn’t take the right action.
This is known as negligence.
Negligence is not the same thing as fraud, as fraud happens when people make misrepresentations on purpose for financial gain. However, fraud is also common in real estate, with some people falsifying reports and taxes.
Both negligence and fraud can get you into major legal trouble, but an attorney can help you to avoid these issues.
When you collect clients’ information, certain laws govern how this information is stored and protected against hackers.
Be sure that your clients’ data remain in a safe physical location, or use security software to protect their information on a computer. Otherwise, you open yourself up to a legal suit.
We offer top-of-the-line services to real estate agents in California.
Contact us to find out how we can help you to protect your reputation and your wallet in today’s competitive and complex real estate industry.