As states busily try to stamp out such foreclosure “rescue” schemes, they’re enacting laws that sometimes snare legitimate investors. So if you’re buying foreclosure properties, or working with an investor client who is, you’ll need to exercise a little caution or you may end up on the wrong side of the law.
Real estate practitioners see minimum service issues and stepped-up RESPA enforcement becoming more problematic for the industry in the next two years. At least that’s the opinion of practitioners surveyed for the 2007 Legal Scan: Legal Issues Facing Real Estate Professionals.
When disputes arise over the disbursement of earnest money funds, you may find yourself caught in the middle, facing civil liability, forfeiture of compensation, or disciplinary action by the real estate commission. Fortunately, you can reduce the risk to your clients and to yourself with these tips.
These days many forward-looking real estate sales associates are exploring online and offline auctions as ways to sell slow-moving listings. But as with any new business venture, be sure you understand your legal positions before you get involved.
Say you’re sued and the type of claim involved isn’t covered under your errors & omissions insurance. Tough luck? Not necessarily. E&O carriers may have to help you defend against mold and other excluded claims.
Brokers have a duty to their clients and MLSs have a duty to their participants to actively protect and manage listing content. Failing to take appropriate action to safeguard this intellectual property could lead to liability and a loss of assets, particularly if such a failure is deemed to be negligence.
The Bankruptcy Abuse Prevention and Consumer Protection Act was intended to lessen abuses of bankruptcy statutes by some financially troubled debtors. However, one significant new provision puts added pressure on the owners of single-asset real estate who face credit problems and makes it more difficult for them to prevent the foreclosure of their real estate.