With all the properties, clients, and details, it is easy to miss something and risk getting sued. Every real estate agent knows the importance of being educated and prepared to deal with legal issues like failure to disclose a property defect, misleading clients, breach of duty, etc. Here are six of the most common ways you can get sued and how to avoid them.

Failure to disclose a property defect

These can include problems stemming from construction, improvements made without permits, cracks in plaster or cement, and that pervasive nuisance – leaks. Every defect, no matter how minor, should be thoroughly documented. Take a little time to go through each piece of property you represent and look at them as though you were going to buy them for yourself.

Sellers tend to minimize defects while buyers magnify them – especially after signing the papers and buyer’s remorse sets in. Most of the time, the buyer will get over it, but if the problem is serious or becomes greater over time, he or she may decide to sue.

According to Inspections experts at maryroofs, Inspection services should be part of every real estate deal. The eyes of a trained third party can be of immense help in disclosing every defect in the property.

To successfully sue you for failure to disclose, they have to prove that you knew or should have known about the defect and didn’t disclose it. Documentation is your best defense.

Breach of duty

One of the more common reasons real estate agents are sued is for breach of duty. The agent must always act in the best interest of the client, whether buyer or seller, and they rely on the agent for his or her expertise. Like any professional, real estate agents are expected to exhibit a high standard of honesty. Any breach of this sacred trust – whether intentional or otherwise – puts the agent at risk for a lawsuit.

For this reason, documenting everything and practicing full disclosure are the best ways to mitigate this risk.

Working outside your expertise

Representing clients in areas with which you are unfamiliar is dangerous. You must be extra careful to do the research beforehand. If you fail to warn your clients about issues you should have known about, you open yourself to a lawsuit. Here, the best defense is to be sure you devote enough time and effort to research and if you discover that the property is truly beyond your expertise and ability, don’t represent it.

Playing lawyer

Your clients expect you to have an answer to every question and you want to be the most help to them you can, but don’t forget that it is illegal for you, the real estate agent, to give legal advice. This can be tricky, because legalities are part of real estate. If you give the wrong advice – or even the right advice and it is misconstrued by the client! –the client could pass the blame for any negative consequences on to you. Always politely refer legal questions to a lawyer.

Misleading the client

The temptation to mislead by exaggerating the qualities of a property is always present. Always double check yourself to make sure every statement you make about the property is truthful.

Breach of contract

One of the most common sources of breach of contract is missing the time frames explicitly stipulated in the contract. Go over each paragraph of the contract with a lawyer to make sure that all the relevant information is complete and accurate. Take time to advise each client on the terms of the contract.