The real estate business is always tricky and quite involving. It involves buyers and sellers of property and here, there is a process that must be followed. Most sellers are not ready to go through this process and therefore decide to choose another party (an agent) who helps them in the transaction and only involving them where necessary. A real estate agent job is not an easy one and worse still, it is very risky.
Reading this article will help you know the responsibilities of a real estate agent, the key exposures and the insurance required for the professional.
Role of a real estate agent
A real estate agent plays the role of an intermediary where they represent either party in the transaction. They are continually researching to compare current prices of houses or properties with others that have been sold recently to determine the market price. With their vast knowledge in market trends and experience in the real estate- thus they act as consultants advising clients on a variety of issues.
It is also the work of real estate agents to promote the sales of homes through advertisement and even participating in listing services. You are also required to prepare purchase agreements and other documents involved in the sale process. You are in business and therefore you also need to advise sellers on how to make their homes more appealing to attract buyers and sell at a higher price.
As a real estate agent, you notice that the above duties are key and any neglect on any could lead to a legal action taken against you by a third party. Therefore you need professional indemnity insurance which will protect you in case of a claim where you’re required to pay the legal team and damages payable.
What are the key exposures for the real estate agent?
As previously mentioned, as a real estate agent you are exposed to some risks due to the nature of your work. The following are some of the exposures you expect.
Failing to prove the originality of your work
Some of the documents involved in the buying and selling of property may be challenged if they don’t meet the required legal threshold- that could mean litigation against you by the aggrieved party.
If you fail to advise your client
Sometimes you may ignore the little things in the sale agreement that may affect the buyer or seller negatively. In this case, one may sue you for negligence.
Negligence when following legal laws and company guidelines
You may be new or just because you are in a hurry ignore some regulations regarding property sale transactions. The aggrieved party may sue you and this is costly.
Need for real estate agents insurance
All the above and many other issues may land you into costly litigations against you and that is why you need real estate agents insurance. The indemnity protects you as a real estate agent from financial loss emanating from a dissatisfied client.
The real estate agency business is very sensitive and anytime, you could be faced with costly litigation. Therefore, you should get a real estate agents’ policy. Do not wait until there is a problem strikes.