One in five real estate agents can face a legal issue yearly. Only $49/month gives you 24/7 legal help for all the challenges you may face in these new times.
Here are just 10 Common Legal Issues Realtors Face.
1. Misrepresentation or Non-Disclosure
- Issue: Realtors may provide inaccurate information or fail to disclose property defects, zoning restrictions, or legal encumbrances.
- Client Actions:
- File lawsuits for fraud or negligence.
- Seek financial damages for repairs or lost value.
- Cancel the purchase agreement or rescind the sale.
- How LegalShield Can Help:
- Advise on proper disclosure requirements.
- Review contracts to ensure compliance.
- Defend realtors against misrepresentation claims in court.
2. Breach of Contract
- Issue: Failing to meet the terms of agreements, such as not advertising a property effectively or missing deadlines.
- Client Actions:
- Sue for breach of contract and financial damages.
- File complaints with real estate licensing boards.
- How LegalShield Can Help:
- Review agreements to mitigate risks.
- Represent realtors in breach of contract disputes.
- Help negotiate settlements to avoid lengthy litigation.
3. Dual Agency Conflicts
- Issue: Representing both buyer and seller in a transaction can lead to conflicts of interest, especially if terms aren’t disclosed.
- Client Actions:
- Accuse the realtor of bias or failure to protect interests.
- File ethics complaints or pursue lawsuits.
- How LegalShield Can Help:
- Provide guidance on proper dual agency disclosures.
- Defend against ethics complaints.
- Represent realtors in legal disputes involving conflicts of interest.
4. Discrimination Claims
- Issue: Realtors may be accused of violating Fair Housing laws, such as steering clients based on race, religion, familial status, or other protected characteristics.
- Client Actions:
- File complaints with the Department of Housing and Urban Development (HUD).
- Initiate lawsuits for discrimination or emotional harm.
- How LegalShield Can Help:
- Offer training on Fair Housing compliance.
- Assist in responding to HUD complaints.
- Defend realtors in lawsuits or regulatory investigations.
5. Commission Disputes
- Issue: Disagreements over commission splits, non-payment of fees, or exclusive agreements.
- Client Actions:
- Refuse to pay commissions.
- Sue for contract violations.
- File complaints with professional boards.
- How LegalShield Can Help:
- Draft or review commission agreements to prevent disputes.
- Negotiate or mediate disputes between parties.
- Represent realtors in arbitration or court proceedings.
6. Property Boundary or Title Disputes
- Issue: Disputes may arise over unclear property boundaries, encroachments, or undisclosed title issues.
- Client Actions:
- File lawsuits for damages or to force boundary adjustments.
- Seek compensation for title insurance or legal fees.
- How LegalShield Can Help:
- Provide advice on boundary and title laws.
- Review title documents to identify potential issues.
- Represent realtors in litigation involving boundary or title disputes.
7. Failure to Protect Confidential Information
- Issue: Leaking client information, such as financial data or transaction details, may lead to claims of privacy violations.
- Client Actions:
- File lawsuits for negligence or breach of confidentiality.
- Report the realtor to licensing boards.
- How LegalShield Can Help:
- Offer legal guidance on privacy laws.
- Assist in drafting confidentiality agreements.
- Provide representation if accused of breaching client privacy.
8. Marketing or Advertising Violations
- Issue: Misleading advertising, such as exaggerating property features or using unlicensed materials, may lead to legal or regulatory actions.
- Client Actions:
- File complaints with advertising boards or real estate commissions.
- Pursue lawsuits for deceptive practices.
- How LegalShield Can Help:
- Review marketing materials for legal compliance.
- Provide defense against claims of false advertising.
- Negotiate resolutions with regulatory bodies.
9. Negligence in Property Management
- Issue: Realtors managing rental properties may fail to address tenant complaints, maintain the property, or comply with landlord-tenant laws.
- Client Actions:
- Sue for negligence, property damage, or financial losses.
- File complaints with housing authorities.
- How LegalShield Can Help:
- Offer advice on landlord-tenant regulations.
- Draft or review property management agreements.
- Defend against lawsuits or regulatory complaints.
10. Errors in Transaction Documentation
- Issue: Errors in purchase agreements, closing documents, or lease contracts can delay or jeopardize transactions.
- Client Actions:
- Sue for financial losses or damages.
- Cancel the transaction or refuse to proceed.
- How LegalShield Can Help:
- Review transaction documents for accuracy.
- Assist in resolving disputes caused by documentation errors.
- Defend realtors in court if errors lead to litigation.
How LegalShield Can Assist Realtors Across All Areas
- Legal Advice On-Demand: Immediate access to experienced attorneys for guidance on compliance and risk prevention.
- Document Review Services: Ensure all contracts, disclosures, and agreements meet legal standards.
- Representation in Disputes: Defend realtors in lawsuits, regulatory investigations, or arbitration.
- Proactive Risk Management: Help avoid issues through proper documentation, disclosures, and marketing practices.
- Affordable Legal Support: Provide comprehensive legal protection at a predictable monthly cost.
- 24/7 Legal Advice: Realtors can consult attorneys on urgent legal matters anytime.
- Proactive Education: Access resources and legal advice to prevent common pitfalls.
By partnering with LegalShield, realtors can handle these challenges confidently while safeguarding their reputation and business.