Referral fee payments to unlicensed individuals or entities can jeopardize your real estate license. Yet, it’s so easy to make referrals online that it may be equally easy to overlook the status of someone’s license.
We refer to them all the time, but what are real estate red flags, and what should we do when we identify them? Calling attention to red flags may make waves in a transaction, but it’s far better than overlooking them, which leaves your client or customer vulnerable and you open to liability.
Having a complaint filed against your license with your state’s regulatory body can be traumatic. Few licensees are familiar with the issues and procedures involved in responding to, and defending against, a license complaint. This article will explain how licensing authorities generally handle complaints and suggest how to respond effectively.
For well over a decade, NAR statistics have shown that the leading sources of litigation against real estate practitioners are lawsuits alleging either misrepresentation or failure to disclose a material fact. Most of these suits are brought by a homebuyer against the seller and all real estate practitioners involved in the transaction.
A stigmatized property puts you in the difficult position of wondering what facts, if any, you must disclose to prospective buyers. It’s important to understand, because failing to disclose a stigma or disclosing it improperly is a frequent claim in lawsuits against real estate licensees.
If you can remove, in advance, a buyer’s likelihood of misunderstanding or being misled by advertising language, you’ll reduce the likelihood of a post-close challenge. When working on a draft real estate ad, ask yourself, Could someone reasonably challenge any claim made in the text? Here are some tips to consider when reviewing your draft ad copy.
Don’t believe the myth that the Internet is as lawless as the Wild West. Government at all levels is watching what happens online and clearly believes it has the authority to regulate and punish misconduct. Likewise, courts have had no difficulty extending the long arm of the law into cyberspace.