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Dealing with Malicious Acts by Tenants – a Guide for Property Managers
It’s every property manager’s and property owner’s worst nightmare — when a tenant does malicious damage. This is why it’s important to know what the liabilities are, and…
How to Avoid Non-Compliance with the NAR Code of Ethics
The NAR has been the peak trade association for the real estate industry since its original founding in 1908. When you join your local real estate association, you…
Can You Text Changes to a Lease Agreement?
A couple was selling one home and moving into another that needed work. They arranged to lease the house they sold, while a contractor did the work on…
Selling A Home Where Someone Died – A Guide To Your Disclosure Responsibilities
Disclosures vary in every state, but most relate to material defects and physical things which are wrong with the home. What if you’re selling an amazing property which…
High-demand Housing Markets – what your buyers should know about the housing shortage
The housing market is tough for homebuyers right now, especially in California (as well as some areas of WA, IN, GA, and OH). There are simply more prospective…
Blockchain, Cryptocurrency and Your Real Estate Business
Blockchain is changing the way we gather, store and use information. And it’s now being tested and used for some real estate transactions. As of February 2018, New…
Brokers & Buyers Under Surveillance — Are You Being Watched?
Technology has changed the real estate market, resulting in more efficient real estate transactions and timely exchange of information. However, some unanticipated consequences have surfaced. Surveillance systems can…
Tiny House, Big Problem – Understanding the legal risks of building, buying and selling tiny homes
With the current affordable housing shortage in many areas of the United States, it’s no surprise that buyers are looking for low-cost alternatives to traditional housing options. Trendy…
How to Avoid 3 E&O Claims Against Real Estate Agents Representing Tract Home Buyers
Tract homes and communities often appeal to first-time homebuyers. Buyers like the idea of selecting a floor plan, exterior design, interior finishes, and color palette in a brand-new…
Educate Your Home Sellers on FHA Loans to Reduce Your Risk of A Real Estate Lawsuit
Federal Housing Authority loans (FHA loans) have even higher loan limits for 2018 in many counties, which should make them an attractive option for a larger range of…
Be Alert and Prepared for Real Estate Broker Identity Theft
Our E&O client recently contacted CRES Risk Management to report that somebody was using her name, license number and professional background on a fake website. The website was…
Disclosing and Documenting Before Closing
Document All Client Advisories about Third-Party Experts Do you advise your clients in writing to consult with third-party experts before closing? And if you do, do you document…
How to Ensure Offer Terms Survive the Real Estate Closing: the Doctrine of Merger
Errors and Omissions claims against real estate agents or brokers are often based on the Purchase Agreement and Sales Disclosures. Clients who feel their interests were not adequately…
Can You List Property in Trust with an Uncooperative Co-owner?
There are benefits of putting a property in trust, but sometimes it can complicate matters—especially when trustees don’t agree. Have you ever had a court assigned listing for…
Making the Most of Slow Sales Quarters: How to use the extra time to prepare for what’s next
The first quarter of the year is traditionally the slowest in the real estate industry. But you can use the time to assess and plan for success in…
Money Laundering in Real Estate: How it works, how to identify it, and how to report it
Real estate money laundering is not a new problem in the United States. According to the Financial Action Task Force on Money Laundering (FATF), the real estate industry…
Real Estate Agents: Understanding Easements and How to Minimize Liability
Easements are a non-possessory right to use land or a portion of property belonging to another person. Failing to recognize and educate clients as to the existence of…
Should a Real Estate Agent Disclose Divorce in a Home Sale?
It’s not uncommon for a couple getting divorced to sell their home, so it’s quite possible that you have been or will be involved in real estate sales…
How to Prepare your Real Estate Clients for the Appraisal: What Appraisers Want You to Know
Real estate appraisers do a complicated job in an exacting, precise manner. When they create an appraisal, they have nothing to gain or lose from the final number—with…
Choosing The Right Tenants To Avoid Future Lawsuits
Choosing the right tenants is one of the biggest challenges property managers face. When done right, it can significantly minimize your risk of a lawsuit or Errors and…
Easy Email Marketing Tips for Busy Real Estate Professionals
Did you know, according to the Data and Marketing Association, it takes 7-13 touches to deliver a qualified sales lead? That is, your prospects need to hear about…
How to Keep a Verbal Easement from Turning into a Lawsuit
Have you represented a property with a verbal easement? If so, did the buyer or seller get an Improvement Location Certificate (ILC)? If not, you could end up…
What to Know to Avoid RESPA and Real Estate Referral Lawsuits
Could a list of preferred providers put you at risk of legal woes? Possibly. The Real Estate Settlement Procedures Act (RESPA) doesn’t specifically mention preferred provider lists. Still,…
Floods, Fires, Hurricanes: How to Sell Homes in Real Estate Risk Zones
The past year has seen intense hurricanes in Florida and the Caribbean, hurricane-related flooding in Texas, and wildfires in California, Oregon, and Idaho among other disasters. Storms can…
CAN-SPAM Act Compliance And Why It’s Important For Your Real Estate Business
It’s difficult to grow your real estate business without an incoming flow of new customers. Marketing is an important part of making that happen. But, if you’re sending…
How to “Steer” Clear of Fair Housing Act Violations
One of the keys to help prevent Fair Housing Act lawsuits is to avoid “steering.” The Federal Fair Housing Act prohibits discrimination in housing sales, rentals, and financing,…
What Can Property Managers Do About Marijuana Cultivation?
Changes in state laws about marijuana use and cultivation means that growing marijuana may become an issue for real estate agents in several states. Recently, CRES Risk Management…
How to Represent Properties with Marijuana Cultivation
Several states have enacted laws that make marijuana use and cultivation legal in their states, but federal law still prohibits the use and cultivation of marijuana for medical…
Should Your Client Use Amazon Key for Real Estate Showings?
Amazon Key allows delivery people to enter a home to place packages inside. The app is now expanding to new uses—including home showings. What effect will Amazon Key…
How To Avoid A Real Estate Lawsuit When Selling A Storm-Damaged Home
Natural disaster can come at any time -- whether it’s a hurricane, like we’ve seen recently in Florida, or the unprecedented flooding in Houston. The trail of disaster…
What Real Estate Agents Need to Know about Smart Homes
With smart home technology on the rise, it’s important for real estate agents to know what's available and how to showcase it. But, smart technology brings its own…
3 Ways to Avoid a Real Estate Lawsuit When Using Social Media
Social media can be a great way to showcase listings, build relationships, and connect with clients and potential clients. But to maximize its benefits, you need a solid…
How to Avoid Real Estate Lawsuits from Virtual Staging
Want quicker sales and higher sales prices? Staging a home might be the ticket, because it helps potential buyers see themselves living in a property. And then there’s…
How to Withdraw Counteroffers to Prevent Real Estate Lawsuits
The good news is that you’ve gotten multiple offers on an open listing. The bad news, you accidentally sent out two counter-offers. What should you do? One of…
What to Do When A Real Estate Lawyer Wants to Talk to You
Don’t let a simple inquiry escalate into a real estate E&O claim You see the email pop into your inbox, or the receptionist tells you there’s an attorney…
Three Ways to Protect Yourself From Foundation-Related Lawsuits
Foundation issues are among the most common problems found in home inspections, and foundation defects and cracks are among issues you need to disclose in most places. When…
Can You Avoid Real Estate Lawsuits with Good Customer Service?
Your excellent customer service is essential in real estate. Satisfied clients stick with you, become repeat customers, and refer others to you. Dissatisfied clients, on the other hand,…
How to Advise Your Real Estate Client About Bad Odors
You may talk to your sellers about curb appeal, decluttering and staging. But there’s something else that can make a terrible first impression: smell. Troublesome odors may make…
Can Real Estate E&O Save You from Misrepresentation?
Misrepresentation is among the most common claims made against real estate agents. It seems pretty obvious that you shouldn’t misrepresent the property you want to sell, but it…
Should You Respond to the Threat of a Real Estate Lawsuit?
Seller carrybacks can be risky. Could helping a client with a carryback loan put you at risk of a real estate lawsuit? In this example it did. Our…
Scam Alert: The Latest Schemes Agents May Not Know About
In real estate, we’re still seeing numerous cases of wire fraud – and now we’re seeing some new types of fraud. In the past six months, we’ve seen…
A Real Estate Broker’s Guide to Per-Transaction E&O
If you’re looking to purchase or renew your real estate Errors and Omissions insurance for your real estate or mortgage brokerage office, you may want to consider a…
How to Advise Buyers of FIRPTA When Purchasing from Foreign Sellers
Many real estate agents representing buyer clients have come across properties being sold by a foreign person -- or someone who appears to be a foreigner. You may…
The Threat Next Door: Why Your Clients Need To Know About Bothersome Neighbors Before They Buy
In the 2014 movie Neighbors, Seth Rogen and Rose Byrne play new parents who move into a new neighborhood. The house next door happens to be a fraternity…
Avoid a Lawsuit as a Dual Agent Selling Your Own Home
You’re ready to sell your house. Good thing you’re a real estate agent. You can represent yourself—and maybe the buyer, too (depending on your state)—streamline the process, and…
Is Zillow’s Joint Marketing Program a Violation of RESPA?
Increasing Scrutiny of RESPA Violations Joint marketing activities between real estate agents and lenders have been the subject of inquiry by governmental authorities as a potential violation of…
What to Do When the Tenant Will Not Allow Access During Your Listing?
Do you know what to do when a property is listed for sale with a tenant on the property and the tenant refuses to cooperate with requests for…
How to Handle Being Misnamed in a Real Estate Lawsuit
Getting hit with a real estate lawsuit is stressful—even when you shouldn’t have been named as a defendant. Recently a CRES client received a solicitation letter from a…
Why a Listing or Selling Agent Should Buy the Home Warranty
Anytime a home is part of a real estate transaction, an opportunity exists to protect it with a home warranty plan. For real estate professionals, purchasing a home…
Why Real Estate Agents Shouldn’t Answer Tax Questions from Clients
It’s important for real estate professionals to go the extra mile for clients. But where do you draw the line? While you (of course) want to be a…
How to “Fire” a Difficult Real Estate Client
Over the last several years I have seen more and more of my real estate agent clients become frustrated in their representation of sellers or buyers. Sometimes it’s…
Understanding the Earnest Money Deposit in Real Property Sales
What Is Earnest Money And Its Purpose? Earnest money, or a good faith deposit, is cash deposited by a buyer to a seller into escrow (in states that…
What is a Seller Carryback? How to Protect the Seller and Yourself in a Seller Carryback Transaction
Seller carryback financing is when the seller of a given property acts as a lender for a buyer on the seller’s property. The end result is that the…
FEMA and Flood Zones: Real Estate Agent Frequently Asked Questions Answered
When selling or buying a property in or near a flood zone, all parties associated with that purchase will have questions, concerns and mandates. These parties are the…
What To Do When Your Client Is In Contract and Does Not Want To Close?
Buyer’s (or seller’s) remorse becomes a legal issue when the buyer or seller does not want to close after they are under contract to buy or sell. This…
A Property Manager’s Guide to Successful Property Management Agreements
Many real estate professionals have diversified their business models and become involved in real estate property management. This has been an excellent source of revenue for these professionals,…
Multiple Offers: How to Reduce Your Risk of a Real Estate Lawsuit
While multiple offers are certainly enviable for listing agents, they also increase the risk of a real estate lawsuit when certain steps, procedures, and laws are not followed…
How to Avoid a Real Estate Lawsuit When MLS Gets Things Wrong
Using a multiple listing service (MLS) has benefits for agents, but what if your MLS gets information wrong? Let’s look at how you can protect yourself from a…
Real Estate Electronic Client Communication: Best Practices to Avoid E&O Claim Situations
Did you know that even a text message between you and a client can be used as defense a should a real estate E&O claim be filed against…
Case Study: Creation of an “Associate Licensee” and the Duty to Investigate and Disclose – Horiike v. Coldwell Banker
Real Estate Agent Fiduciary Duties Ruling In November 2016, California’s Supreme Court affirmed the Appellate Court’s decision in Horiike v. Coldwell Banker (2014) 225 Cal. App. 4th 427…
