As you run your real estate agency in Florida, you probably underestimate the likelihood of getting sued. After all, most of your customers seem happy, and you and your clients conduct plenty of inspections before they move into new properties. However, because you have so many customers and so many different properties, it’s easy to make a mistake that drains your savings account. Here’s what you need to know about negligence and the real estate industry.
What Is Negligence in Real Estate?
Understanding your Orlando real estate professional liability starts with understanding negligence in real estate. Former clients can sue you for negligence if you do not fulfill your reasonable duty towards them. Unlike fraud, negligence is usually unintentional, but you are still legally responsible for your actions. Whether negligence occurs because of stress, personal problems, or overwork, having an insurance policy in place is crucial to staying in business after a lawsuit.
What Are Common Negligence-Related Complaints?
When clients sue your business for negligence, they often claim that you misrepresented the property they purchased. Perhaps your inspections were not thorough enough and the house is actually severely damaged or infested with animals. Perhaps you failed to include a leaking pipe or a nonstop noise on the list of property defects. Whatever the issue, if you claim that a property is in better condition than it really is, your clients can sue you for negligence.
Another issue that affects your Orlando real estate professional liability is your customers’ wellbeing while visiting a property. Although injuries during house showings are uncommon, your clients have cause to sue you if they get injured because you did not properly inspect a property and remove potential hazards. For example, if you invite clients to see a house on an icy day and you do not salt the driveway before they arrive, you are responsible for their falls and any injuries that ensue.
It’s easy to become overwhelmed by work, but failing to keep your deadlines counts as a breach of contract, another issue related to negligence. This legal problem only occurs if you and your client have signed a contract and you have failed to adhere to your agreed-upon timeline.
What Are Some Ways To Prevent Negligence?
Preventing all claims of negligence is virtually impossible for a busy real estate agent. However, if you prioritize honesty over quick sales with your customers, you’re less likely to end up in court. Additionally, make a checklist of all the inspections that need to happen both before a sale is finalized and before you show your customers a new property.
For the circumstances that you can’t prevent, keep up with your insurance payments, and make sure that your company covers your Orlando real estate professional liability.
About The Hilb Group
Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.