Avoid These Costly Real Estate Mistakes

Mistakes you should NEVER make

Mistakes you should NEVER make After 32 years of defending real estate licensees, E&O has seen claims of every type. Here are some mistakes to avoid at all costs!

Mistakes you should NEVER make Licensees learning from the mistakes of others helps reduce claims, which helps E&O keep rates reasonable for everyone.

Mistakes you should NEVER make Example 1 Licensee had his buyer client sign a completely blank contract before leaving the country for a holiday (just in case something came up while he was away).

Mistakes you should NEVER make Example 2 A licensee corrected a minor mistake on a contract after it was signed, but didn t mention it to the parties involved or have them initial the changes.

Mistakes you should NEVER make Example 3 A licensee signed a contract as witness, but never actually saw the person sign it.

Mistakes you should NEVER make Example 4 Licensee for seller client didn t notice that completion date was changed by a year in the counter- offer. Seller agreed to a date a full year later than they realized.

Mistakes you should NEVER make Learning Contracts are legal agreements, and must stand up to scrutiny. Contracts should be in writing, contain all agreed terms and be signed by the parties to it. Always review all details carefully.

Mistakes you should NEVER make Example 5 Seller s agent was aware of a demo order on an addition built without a permit, but didn t mention it to the buyer or ensure the seller put it in the Property Disclosure Statement.

Mistakes you should NEVER make Example 6 Seller s agent knew a property flooded in heavy rain, but didn t disclose it to the buyer (even though the seller kept a rowboat on his front porch so he could get to his car during floods!).

Mistakes you should NEVER make Learning As a seller s agent, be familiar with your disclosure obligations under Rule 5-13.

Mistakes you should NEVER make Example 7 A buyer s agent helped the owner of several cats to buy a unit in a strata that didn t allow pets, knowing the client intended to live in it.

Mistakes you should NEVER make Learning As a buyer s agent, be familiar with your client s requirements and warn them if a property being considered does not comply.

Mistakes you should NEVER make Example 8 Licensee failed to forward all strata documents to buyer client prior to subject removal.

Mistakes you should NEVER make Learning Buyer s agents should relay to clients all material information received about the premises without delay. Keep a record of the information you provide.

Mistakes you should NEVER make Example 9 Licensee encouraged buyer client to make offers on two properties at the same time, and just choose one if both offers were accepted.

Mistakes you should NEVER make Example 10 Buyer failed to remove subjects on time and lost the deal, because licensee used a sticky note to remind themselves of date and it fell off.

Mistakes you should NEVER make Why mistakes happen Not knowing your product. Simple oversight or failing to pay attention to details.

Mistakes you should NEVER make Why mistakes happen Stepping outside your area of expertise. No proper diary system. Not enough education or training.

Mistakes you should NEVER make What do you do if you made a mistake and a claim for damages is made? Talk to your managing broker. Report the matter to E&O immediately. Consider if you also must report to RECBC.

Questions? Thank you.