You have a showing and are excited to hear about the feedback, but you find out the buyers’ realtor had been making disparaging statements about you in your own home. This is what happened during a showing when the Continue Reading
Imagine finding out that the property you just purchased is not actually yours because the seller never owned it in the first place. This is a growing problem where criminals transfer the deed to a property or home Continue Reading
Every property owner wants the transition into their new home to be seamless. However, sometimes the previous owner, who gladly accepted your hard-earned money for the purchase of their home, leaves personal Continue Reading
Accurate disclosure documents are crucial to both sides in real estate transactions. When selling a property, the owner must always reveal essential information in a written disclosure document. The Claim Home Continue Reading
Even for seasoned experts, selling real estate is a complex undertaking and a potential legal labyrinth. If due diligence is not done, agents and their brokers can face unexpected and unwelcome legal trouble. The Continue Reading
Often times during the sale of a home, there are upgrades that require either exclusion from the contract or a separate agreement (e.g. selling furniture with a home side deal). There is potential for disclosure Continue Reading
A heated real estate market can cause agents and buyers to be careless and reckless. Often buyers feel like they need to remove purchase contingencies to make their offer more competitive. Removing a house Continue Reading
Dual agency usually happens when an agent represents both the seller and buyer of real estate in a transaction. However, it also occurs when separate agents licensed to the same brokerage firm represent both sides Continue Reading
Real estate transactions pose dangers to buyers and sellers. For example, some might think the Seller’s Disclosure form from a realtor-owned listing would be watertight. However, they would be wise to Continue Reading
Real estate agents may take on more responsibility and significant liability risks than they might realize upon entering the profession. For example, if an agent lists a house for sale without disclosing that Continue Reading
Real estate agents are at the center of every deal, causing them to face unavoidable challenges. It’s taxing enough to satisfy brokers, lenders, other agents, appraisers, and clients who demand time and expect Continue Reading
Some emotionally sensitive people with psychiatric ailments rely on emotional support animals (ESA) to help them cope. For example, an ESA aids people with disabilities or mental health issues and is part of the Continue Reading
The pandemic is causing significant changes in every business. For example, selling homes to buyers sight unseen has become a widespread practice for real estate agents. People want to move to a distant location but Continue Reading
For real estate professionals, it is a legal, ethical, and courteous practice to fully disclose all facts that directly affect the value of a property, particularly any details that influence a buyer’s perspective. Continue Reading
Real estate professionals must provide full disclosure of all material facts that impact the appeal and value of a property their clients seek to purchase. Clients who claim the real estate agent or broker failed to Continue Reading
Real estate professionals are legally bound to provide their clients full disclosure of all material facts that affect the value and post-purchase plans of a property their clients seek to purchase. In addition, Continue Reading
In every real estate transaction, agents and brokerages have a duty to inform buyers of material facts about the property being sold. Failure to do so can result in expensive legal claims. When a real estate agent Continue Reading
Originally passed by Congress as part of the Civil Rights Act of 1968, the Fair Housing Act is an important piece of legislation that prohibits discrimination by direct providers of housing, including real estate Continue Reading
Real estate professionals are exposed to numerous risks as they represent buyers and sellers. These risks are only compounded when agents do not perform due diligence before or during the sale of a property. The Continue Reading
Real Estate E&O Claims Spotlight: Archiving Communications (Email and Text Messages) Per Transaction
Real estate professionals have a tremendous number of conversations with clients, agents, and other 3rd parties related to a transaction. Often this transaction-level communication is shared verbally or via Continue Reading
Real estate professionals are bound by a duty of care to disclose material facts that can influence the value or desirability of a given property. Failure to abide by this duty can result in expensive legal claims, Continue Reading
Licensed real estate agents have a professional duty to disclose material facts about properties for sale. They must also represent their clients; either the buyers or sellers (sometimes both) to the best of their Continue Reading
When purchasing a home, buyers and real estate agents do not always think about the utility hookups – or lack thereof – included in the home purchase. Overlooking these critical yet hidden aspects of homeownership Continue Reading
As the U.S. economy continues its post-pandemic recovery, the real estate market has seen buyer and seller interest skyrocket. In a hot real estate market, nearly every home put up for sale receives multiple offers, Continue Reading
In legal claims against real estate agencies and their agents, plaintiffs often focus on issues with the selling of the home, such as failing to disclose damage to the property in question or misrepresenting Continue Reading
Real estate transactions rarely go exactly as planned. When the property in question has been owned and renovated by the real estate agent, and the buyer is a close friend, the transaction could be expected to Continue Reading
Real estate professionals are bound by a range of duties, including certain obligations when those professionals sell agent-owned property or serve as dual agents and sellers of a property. Failure to uphold Continue Reading
Advertising is a critical component of the real estate industry. Promoting a home sale through the use of professionally-shot images is a common practice; such images are often used in brochures, property listings, Continue Reading
Real estate agents face numerous challenges in their profession, and transactions rarely go as planned. When it comes to estate sales, especially in the wake of the COVID-19 pandemic, the challenges faced by Continue Reading
The world’s information is at our fingertips, thanks to the Internet. On the web, it is possible to find literally millions of images, and sometimes these images are used to illustrate websites, business brochures, Continue Reading
When property is in your care, custody, and control, agents are duty-bound to maintain property premises in a safe and hazard-free manner. Failure to do so, such as in cases of neglect, deferred maintenance, or Continue Reading
In real estate transactions, both buyer and seller have a reasonable expectation of propriety. In other words, both parties expect that the transaction will be free of fraudulent practices. Unfortunately, this is Continue Reading
There are many cases of bodily injury or property damage occurring during property showings, but most people don’t consider the potential danger of pets during a showing. With over half of all American households Continue Reading
Potential renters and buyers are not always what they appear to be. Fair Housing Testers are individuals who pose as prospective clients in order to investigate potential discrimination in housing, particularly as Continue Reading
In the age of Airbnb and other home sharing services, it’s now easier (and more appealing) than ever for homeowners to rent out their property for an additional income. However, no homeowner should assume that they Continue Reading
What you SHOULD be reporting to your Real Estate E&O Policy? Your E&O policy has a reporting requirement for both claims and potential claims. Please refer to your actual policy for complete terms and Continue Reading
It’s not uncommon for the owner of a property to not be around when their home is shown to potential buyers. Under the supervision of a real estate agent (or several), potential buyers can look around the home and Continue Reading
While real estate agents have many responsibilities, there are some things that should not be addressed by agents during the buying and selling process, as they can lead to costly claims and lawsuits. Disclosures or Continue Reading
Purchasing homes for the purpose of increasing their value and reselling them at a profit, also referred to as wholesale, is a popular practice that can be beneficial for both the buyer and the real estate agent Continue Reading
What does a misrepresentation claim look like in the real world, and what kind of consequences does it have for an agent? Let’s take a look at one of our recent claims. The buyer, represented by a real estate agent, Continue Reading
The Facts: Mrs. Johnson, an agent with ABC Realty, was hired to list a bank-owned, commercial property. She heard the previous owners, a mechanic shop, had abandoned the property and left it in bad shape. When she Continue Reading
A spotlight on a claim against a real estate agent who represented his sister in the sale of the sister’s house where the buyer claimed the sister and the agent conspired to not disclose flooding events. Fact Continue Reading
When a family with a two-year-old boy moved into a house that was more than 100 years old, they had no idea that the house was covered in lead-based paint. The reason they were unaware of this was because the real Continue Reading
Sexual misconduct by a company executive or employee can result in a wide variety of legal claims against the company itself. If the victim is an employee, a supervisor’s unwanted sexual advances or other conduct of Continue Reading
Whether you explicitly perform Property Management services, or you provide property management services as part of a transaction, there are significant exposures to E&O claims resulting from bodily injury or Continue Reading
We have been asked over the years if events such as ice cream socials, holiday toy drives, garage sales, etc, conducted by real estate agents within their communities to market their personal/team brand are covered Continue Reading
BI/PD stands for Bodily Injury and Property Damage. Most Real Estate E&O policies include some measure of BI/PD coverage, such as limited lockbox coverage or open house coverage, but the broadest E&O Continue Reading
What should you do if a convicted sex offender, out of jail for 10 years, applies to rent one of your listings? Ask the owner of the property?… but what if he/she does not give you a clear decision To Rent or Not to Continue Reading
A Hazleton, Pennsylvania realtor could serve up to ten years in prison after pleading guilty to conspiracy to commit wire fraud. The realtor was arrested in Florida after fleeing there to avoid prosecution. The Continue Reading
During the Christmas season, neighbors in a Connecticut town spotted two men carrying large sacks in and out of a home. According to police, one was a local realtor and the other, his accomplice. The men were in the Continue Reading
A spotlight on a claim against a real estate agent who acted as a dual agent for both the seller and the buyer of 1000 acres of agricultural land for $10 million dollars ($10,000 per acre). Fact Scenario: Prior to Continue Reading
Construction/Development coverage extends the E&O policy to provide coverage for the sale of residential property that has been built or developed by an insured agent or broker. The practice of building spec Continue Reading
There really is no such thing as a “Hammer Clause”, but that is the common term for the Consent to Settle Clause in your E&O policy. The Consent to Settle clause dictates what the insurance company will do when Continue Reading
One of the options you have when buying E&O insurance is Defense Outside the Limit (DOL) or Defense Within the Limit (DWL). It is important to understand this option clearly because this will impact coverage Continue Reading
This should go without saying but we still receive many real estate E&O insurance claims revolving around conflicts of interest. Always be mindful of, and avoid at all costs, actual or potential conflicts of Continue Reading
A recent residential transaction resulted in a substantial claim being paid because of an undisclosed termite infestation. Our insured was both the listing and selling agent, so when things went wrong there was no Continue Reading
A spotlight on a PBI Group and Hanover Insurance claim against two real estate agents involving greedy buyers who wanted to keep staging furniture used by sellers to help sell the house. Fact Scenario: An agent Continue Reading
Documenting conversations and decisions made during a real estate transaction is an extremely important best practice for E&O compliance. When you find yourself in the middle of a lawsuit, having proper Continue Reading
One of the best ways to avoid having an E&O suit filed against you is to avoid the extremely difficult clients. Yes, that means walking away from someone who wants to pay you for your services. We know how hard Continue Reading
When neighbors noticed unusual activity at a recently-sold home, officers were called. They found two people engaged in sexual activity. The woman claimed to be the new owner of the house and said the man was her Continue Reading
Trust is paramount, develop it buy showing your clients you are there for them through the exciting and stressful journey of a real estate transaction. Let your clients know they are your top priority by keeping Continue Reading
Unfortunately, in today’s litigious society, lawsuits and grievances against real estate agents are very common. Real estate agents are frequent Targets for lawsuits. A common lawsuit scenario involves a buyer of Continue Reading
Service oriented real estate professionals can sometimes get themselves into trouble if they feel compelled to give advice on matters that are beyond their professional scope. You are not hired to be an expert in Continue Reading
Does your E&O policy have a deductible waiver? It should if the following conditions are met: Seller disclosure form signed by Seller & acknowledged in writing by Buyer prior to closing(if required by your Continue Reading
Errors & Omissions Insurance (E&O) is a very nuanced form of malpractice or professional liability insurance designed to protect yourself from lawsuits filed because of your work as a real estate Continue Reading
PBI Group is a boutique insurance brokerage firm focused exclusively on the insurance needs of real estate professionals throughout the country. Our meticulousness care, pride in operating at the highest level in Continue Reading
