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How to Protect Yourself from a Seller’s Unpermitted Rental Unit During a Sale
Unpermitted rental units and their tenants can pose a risk to real estate agents and brokers. If a buyer can prove that they thought they were purchasing a…
Document Management Tips to Avoid Costly Real Estate Lawsuits
Failure to keep a client’s information secure is one of the top claims made against real estate agents today. The average direct cost for a data breach is…
Plumbing Problems? How to Avoid a Real Estate E&O Claim
Have you ever been in this situation? The inspection looked good, but it turned out there were major problems that went unnoticed. When the buyers found out, they…
When the Septic Hits the Fan: Colorado Specifics
In Colorado, new regulations were enacted regarding septic system requirements that every real estate agent and broker must know. Many other states have not yet put these types…
When the Septic Hits the Fan
Over the past few years, a new breed of real estate malpractice litigation has surfaced: septic system permitting and inspection disputes. Due to increased septic system regulations, several…
Avoid Claims When Selling Homes with Leased Solar Panels
Thanks to government tax incentives, leased solar panels are being installed on homes at a rapid pace. This is great for our energy environment, but presents increased real…
What Happens When Property Managers Aren’t Added to Landlord Insurance Policies?
Are you covered by somebody else’s insurance policy? If you are a property manager, you should be named as an additional insured on all landlords’ insurance policies. Don’t…
Common Housing Issues that Cause Real Estate E&O Claims
Put yourself in a buyer’s shoes for a minute. You’ve found your dream house. You make an offer that’s accepted. You’re so excited. And then that dream turns…
Expanding Your Real Estate Services? Don’t Forget to Expand Your E&O to Cover the Risks
Have you expanded your real estate services since you last renewed your real estate E&O insurance? Are you sure you have coverage for everything you’re now engaged in? …
Do You Need Your Own Real Estate E&O Insurance Policy? Firm vs. Individual
Even if your firm carries amazing real estate E&O insurance, there can still be gaps, limitations and exclusions. These potential gaps vary from firm to firm based on…
How to Avoid Real Estate Phishing Scam Cyber Attacks
What would you do if you got an email message like this: Subject: Re: Offer Attached is the copy of my clients offer, I wait to hear…
How to Customize Your Real Estate E&O Insurance to Get Exactly What You Need
Odds are that you don’t need every type of coverage that a real estate E&O insurance policy could include. For example, a real estate appraiser who doesn’t perform…
Don’t Try to Resolve Real Estate Issues that Could Become E&O Claims on Your Own
Have you ever received a call from unhappy buyers because of misinformation in an MLS listing? Trying to deal with issues like these can be a big headache—and…
Avoid Real Estate E&O Claims Resulting From Agent-Owned Property Sales
Real estate professionals have an inside track when it comes to buying and selling real estate for their own interest or investment purposes. However, these Agent-Owned Property transactions…
Understanding What Real Estate E&O Insurance Coverage Limits Mean
When you look at your Real Estate Errors and Omissions (E&O) Insurance policy and see “$500,000/$500,000” limits do you know exactly what each number means? When you’re considering…
How to Avoid Real Estate Lawsuits when Working as a Dual Agent
Dual Agency, where the real estate agent is acting on behalf of both the buyers and sellers, can be very attractive to some agents. Not only does acting…
How to Avoid a Real Estate Claim Due to Disclosure Confusion
Has a property you were selling ever received an unfavorable inspection report? You know that you need to disclose negative reports, but how do you do that legally?…
What To Do and Not Do When the Threat of a Real Estate E&O Claim Hits
As a real estate professional you will most certainly cross paths with a potential E&O claim during your career. So, what do you do? What don’t you do?…
Real Estate Listing Marketing — What to Watch for to Avoid a Real Estate Lawsuit
It can’t be stressed enough -- getting real estate transaction details in writing is so critical when it comes to documenting a client’s home sale or purchase. Emails,…
Why You Shouldn’t Buy Real Estate E&O Insurance from a General E&O Company
Real estate E&O insurance is unique from other types of business insurance. Each real estate transaction can present a different set of risk considerations, challenges and regulations to…
How to Be Protected From Real Estate Open House and Showings Lawsuits
Did you know that most real estate E&O insurance policies don’t offer coverage for claims that arise due to injuries or property damage at open houses and showings?…
How to Reduce Your Real Estate E&O Insurance Deductible
A retention is your total out-of-pocket expense paid before your insurance kicks in. The retention limit on your real estate E&O insurance policy is going to function in…
Claim Prevention E&O Toolkit: Tools to Avoid a Real Estate Lawsuit
When does real estate E&O insurance protect you far beyond the typical policy? When the E&O insurance actually helps you every day -- with access to claim prevention…
What To Do When Your Words Cause a Real Estate Lawsuit Risk
Misunderstandings happen. Like the time Lisa, a mortgage broker, told a buyer they were “good to go.” Lisa meant that the buyer had submitted everything she needed to…
Legal Review: What Is a RESPA Violation?
The purpose of the Real Estate Settlement Procedures Act (RESPA) is to prevent abusive settlement charges that plagued this country’s real estate industry in the past — and…
The Benefits and Risks of Home Video Surveillance When Selling a Property
Many homes these days have surveillance equipment ranging from high-tech motion detector and video cameras to so-called “nanny-cams.” Not surprisingly, home sellers use such equipment either to protect…
Your Real Estate E&O Insurance Q and A
Real estate Errors and Omissions insurance and claims prevention doesn't have to be complicated or scary. We've compiled the most common questions about real estate E&O insurance and…
Why Every Real Estate Business Needs a Cyber Security Plan to Combat Fraud
Cyber security is a real and increasing issue for the real estate industry. Because you manage transactions that typically involve hundreds of thousands to millions of dollars, you…
The Significance of the Liquidated Damages Provision in the Residential Purchase Agreement
The vast majority of real estate agents and brokers are familiar with pre-printed purchase contracts for land such as the Residential Purchase Agreement and Deposit Receipt published by…
Permit History Reports: A Tool to Prevent Real Estate Lawsuits?
You may have discovered that Permit History Reports can be difficult for real estate agents to access. Typically, you have to check with city and county offices depending…
Report a Potential Real Estate E&O Incident Real-time to Reduce Risk of Coverage Denial
Understand Your Real Estate E&O Insurance I had a claim denied for failing to meet the reporting requirements under the policy terms. What does that mean? One common…
Pocket Listings: Work in Your Client’s Best Interest and Minimize Your Risk
Should you consider a pocket listing? A pocket listing may be appropriate when your client doesn’t want others to know their home is for sale, or when a…
Pocket Listings: A dying breed or a renewed reality? Is there any benefit, and if so, is it worth the risk?
Though many consider “coming soon” listings to be unlisted properties that will, at some point, be listed on the MLS, in many instances, a “coming soon” listing is…
Legal Duties in Residential and Commercial Transactions of a Licensed Real Estate Agent or Broker
Introduction - The Law and Primary Issue California Civil Code section 2079 sets forth the statutory duty of a real estate licensee in the State of California to…
ClaimPrevent® Risk Management Legal Advice to the Rescue
Have you ever overlooked something small that could have big repercussions? Most real estate professionals have. But this is just one case where some Risk Management, aka 'claim…
Is Direct Mail Marketing Effective for Real Estate Professionals?
Let’s cut right to it—does direct mail marketing work for real estate agents and brokers? Yes. According to DMA.org, direct mail marketing remains an effective way to reach…
Baby Boomer Real Estate Trends: They Will Surprise You
There are currently around 78 million baby boomers. According to a survey by the AARP, 87% of baby boomers said they wanted to stay in their homes upon…
Eco-friendly Home Buyers: What They Want and How You Can Meet Their Needs
These days looking green and being green are two very different things. As the eco-friendly movement has picked up momentum over the last twenty years, a shift has…
How to Use Drone Technology to Sell Real Estate
Drones stepped onto the real estate scene almost as soon as they hit the commercial market. Drone footage gives an online posting a professional, high-end touch and allows…
How to Avoid a Real Estate Lawsuit
Real estate professionals are vulnerable when it comes to a lawsuit. Real estate is a big business, with multiple parties, lots of moving parts, and ever-shifting market regulations…
What Rising Mortgage Rate Trends Mean for Your Clients
Rising interest rates, and rising mortgage rates, mean that the economy is doing better. Even though rates have been increasing since hitting an all-time low in 2008, it’s…
How to Advise Foreign Language or Visually Impaired Real Estate Clients
Advising a client who is sight impaired or who cannot read or write in the English language Over the years as a real estate attorney in litigated and…
Top Seven Real Estate Lawsuit Risks for Agents
You can do everything within your power to prevent a claim, but you cannot guarantee a career free of claims or litigation. There are many moving parts and…
I’ve Had A Data Breach – Now What?
A business that maintains records that include a customer’s name along with any one of the following: signature, social security number, address, telephone number, physical description, passport number,…
Disposal of Files
Business and Professions Code Section 10148 requires that a real estate licensee maintain his or her file for 3 years after the transaction closes or for 3 years…
When Does a Real Estate Agent’s Legal Duty Cease in California to His or Her Client?
In recent months I have handled an increasing number of risk management inquiries for real estate agents and brokers on the issue of when does a real estate…
What Is Psychologically Impacted Property?
Colorado has adopted a statute that excuses sellers of residential real estate and their brokers from having to disclose certain facts that may psychologically stigmatize real property. Unfortunately,…
Top Five Millennial Real Estate Trends
Millennials account for more than 32 percent of the US housing market. They are the largest generation to date and make up 68 percent of all first-time homebuyers…
CAR New Wire Fraud Advisory
Cyber crime targeting wire transfers is on the rise. Criminals have developed viruses that hack into email accounts of buyers, sellers, real estate agents and escrow companies. The…
3 Ways to Be More Productive and Hit Your Goals
As real estate professionals, goals play a crucial role in our success. Use these tips to help reach, or exceed your goals. It Starts with You “You…
The Purpose of a MLS Listing of Real Property in California
The purpose of a MLS listing of a parcel for sale Throughout California there are many local real estate associations that provide an electronic service used by real…
Smarter Prospecting: How to get better results
Prospecting is a unique blend of skill, intuition, preparation, fate and detective work. It is the lifeblood of any real estate career. Some say it’s all about cold…
A Real Estate Licensee’s and Seller’s Duty to Disclose All Prior Inspection Reports on a Listed Property
The duty to disclose all that is material affecting price paid or desirability Over the years, I frequently come across risk management inquiries involving whether a seller and…
Get to Know Us!
We have been at this for a while. Twenty years, to be exact. In that time we have watched our company grow to insure and support over 100,000…
Is Your Website ADA Compliant? —A New Cyber Risk
The purpose of the Americans with Disabilities Act (ADA), enacted in 1992, is to assure equal access and services to disabled individuals. The ADA makes it unlawful to…
How to Prevent a California Civil Code Section 1088 Violation
California Civil Code section 1088 Many real estate agents are not familiar with the provisions of California Civil Code section 1088. I am quite familiar with this provision…
Americans with Disabilities Act Website Lawsuits
The 1990 “Americans with Disabilities Act” (hereinafter “ADA”) is a federal civil rights law designed to prevent discrimination based upon one’s disability. Disabilities covered, but not limited to…
Real Estate Selling Points and Hot Buttons: Logic vs Emotion
Real estate is a highly unique product. No two buyers are identical and neither are the buying situations. And while we can and do ask the client all…
Emails versus Texts in a Real Estate Transaction
The best way to prevent a claim or lawsuit against yourself as a licensed professional is to memorialize what was discussed in writing with your client starting with…
Your Master Plan for Buyer and Seller Open House Follow Up
You will encounter four distinct groups of people to follow up with at open houses: The Looky-loos: Unqualified ‘buyers’ who have no idea what they want, how much…
