Coldwell Banker sues a California manager who jumped ship from an acquired brokerage, leading many of his former salespeople to a competing company. The case has implications for brokers with employment contracts.
Our legal system takes a dim view of deception, no matter how innocent the motive. If you're going to pass along information about a property to prospective buyers, make sure it’s factual or let the buyers know you haven't verified the accuracy of the information.
NAR recognizes each practitioner's right to choose not to do business with relocation and affinity marketing companies, but NAR’s Legal Affairs cautions brokers and salespeople against joining together to agree not to do business with them.
As a property manager, remember that the Golden Rule still applies—even when the tenant isn’t paying rent. Don't gamble with potential liability. Repair all known defects that could cause injury. Any time and money spent in avoiding liability will pale in comparison with the aggravation and costs of litigation.
Although the broker's duty varies from state to state, a prudent real estate professional hosting an open house for prospective purchasers or tenants will discover conditions involving an unreasonable risk of injury or harm; take steps to make the condition reasonably safe; and give adequate warning to avoid harm.
During the last four years, it has shaken up the residential real estate industry, fundamentally changing the way business is practiced. What has caused this upheaval? Revision of state laws applying to realty brokerage relationships.
Whether or not the broker can defeat the buyer's claim may depend on what is in the broker's transaction file. A refusal by the buyer to have an inspection performed should be followed with a written confirmation from you and a suggestion that the buyer reconsider.
If you know or suspect a seller's information is inaccurate, you could be liable. Buyers are entitled to rely on the accuracy of your statements. To avoid liability, you should avoid statements about matters in which you do not have first-hand knowledge.