Real estate agents and brokers go above and beyond to serve their clients on a daily basis. From finding the right listing to helping them sell a property at a great price, there are many things these real estate professionals have responsibility for. But sometimes, even the most seasoned real estate veterans can let things slip through the cracks, causing possible financial or even physical harm.
Real Estate Agent Negligence Explained
When it comes to negligence in the real estate industry, brokers and agents owe their clients a duty of care to act in a way that meets the standards of care that are expected of them. This means that an agent must use the skills they’ve gained and natural competence to take care of their clients’ needs. Where and when the agent’s conduct comes up short, they could be on the hook for any damages suffered by the clients.
Duty and Standard of Care
Duty of care towards clients covers everything that is taken care of or should be taken care of by the real estate agent for the client. From gathering information to seeing a deal through to the end, the duty of care arises out of the agreement between the client and agent.
To determine whether a real estate agent satisfied his or her standard of care, their conduct is measured against the conduct of a careful and responsible person in the same profession. In order for the real estate agent to avoid liability claims related to negligence, the agent must prove that they exercised the standard of care that was expected of a careful and professional agent in the same circumstances.
Claims and Insurance
A client may make a claim that an agent should have known to do something specific in a project, such as checking for zoning or look into the foundation of the home. If a buyer signs the paperwork but is shocked to find out they have to pay certain fees for something they should have been made aware of by the agent, they could claim and prove the agent missed something.
Negligence differs from fraud in that it lacks the important element of intent. Clients who seek legal action against an agent claiming fraud will usually be guided to claim financial reparations for negligence instead.
Given the fact that some details, even small ones, are overlooked mistakenly, it doesn’t come off as a solid defense. Real estate agents can’t claim ignorance when faced with a claim of negligence, especially considering that it’s in their job description to uphold certain expectations as a professional in the industry.
To keep claims low and cut down on major fines, real estate professionals can invest in insurance from local providers, like liability insurance for real estate agents. This kind of coverage is meant to provide financial support for real estate professionals when a claim arises. But it can also go beyond just negligence claims as real estate insurance Florida from Hilb Group covers everything from insuring buildings to covering physical property losses.
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