Real Estate Firms

The following list of articles are published from the Risk Management Reporter, Schinnerer's Risk Management Newsletter for the real estate industry.

• Claims Stories
• Client Relations
• Disclosure
• Environmental
• Fiduciary Duty
• Fraud
• Legal
• Sales and Marketing
• Second Homes
• Understanding Why You Need Insurance

Claims Stories

• Stories from the Front Lines: Two local attorneys speak on the kinds of claims they have seen come across their desks.

Client Relations

• Alternative Dispute Resolutions (ADR): Identifying multiple ways to settle disputes.
• Home Warranty Plans: Protection for All
  The benefits of home warranty plans as valuable protection against claims and litigation relating to defects.
• Negotiating a Smooth Closing Experience: What real estate agents can do to make their clients' closing experiences as problem-free as possible.
• Outbids Buyer for Property: Listing broker did not breach any duty to potential buyer when another buyer represented by listing office outbids buyer for property.

Disclosure

• Beware—Before You Buy or Sell Your Own Property: Gives tips to brokers or agents to minimize their risk of exposure when conducting a real estate transaction for themselves.
• Double Up At Your Peril: Explains the importance of disclosure in the case of dual agency.
• Property Defects: Listing broker not liable for failure to disclose property defects when defects were patently obvious.
• Staying Out of Trouble: Two attorneys talked with us about "the granddaddy of all issues that come up with real estate agents" - disclosure.

Environmental

• Disclosing Adjacent Hazards: Brokerage firm liable for actual and punitive damages for misrepresenting existence of toxic waste site adjacent to subdivision.
• Duty to Disclose Off-Site Conditions: Real Estate brokers have duty to disclose off-site conditions that are material to the sale of property.
• A Question of Mold: The Distinction Between Recurring and Non-Recurring Mold: Many states have added a question on mold to their property disclosure statements, notably California and Texas.

Fiduciary Duty

• Disclosing the Purchase of an Adjoining Tract of Land: Does a broker have a duty to tell a seller about the buyer's negotiations to purchase adjoining tract?
• Expired Listing Agreements, Remaining Duties: Does an agency relationship continue, even after a listing agreement expires?
• Inspecting the Issues Involving Inspectors: Inspectors can provide essential information when evaluating the purchase of a particular property.
• Keeping Potential Buyers Informed: Does a broker breach fiduciary duty by not informing potential buyer of termination of another pending contract?
• Latent Defects: Is a buyer agent's duty to a buyer to discover latent defects higher than a subagent's duty of reasonable care?

Fraud

• Builder's Competence: Broker held liable under state consumer fraud act for misrepresentations about a builder's competence.
• Focus on Flipping: Its devastating effects and what the government is doing about it (Part 2 of a series on flipping): Property flipping has quickly become one of thee more common methods of defrauding investors.
• Turning the Tables on Flipping Schemes: Many industry insiders believe appraisal fraud is escalating, but it's difficult to gauge fraudulent activity.

Legal

• Understanding Starker Exchanges:
  It fills you in on IRS Section 1031 exchanges that offer win-win opportunities for agents and their clients.
• Acquiring Companies: Provides tips for mitigating risk during a merger.
• An Agent's Checklist for a Successful Acreage Transaction: Agents involved in acreage transactions should know the areas of concern and be able to direct their clients (buying or selling) to the appropriate experts. Issues from land usage to environmental concerns are addressed in this article.
• Invalid Power of Attorney: Seller's broker not liable for failure to discover and disclose to buyer that seller had invalid power of attorney.
• Megan's Law: The implications of Megan's Law for real estate practitioners.
• The New Residential Purchase Agreement: The California Association of Realtors recently released its revised residential purchase agreement.
• Timely Disclosures Strategies: Risk management information on the critical aspects of any transaction and its preparation and delivery of the Transfer Disclosure statement.
• When the Seller Dies: What happens when this unfortunate incident occurs? Does the sale still go through?

Sales and Marketing

• Short Sales and REOS: Explains the risks associated with short sales and the steps to take to mitigate them.
• Buyer's Injury: Broker could be liable for buyer's injury during open house.
• Don't Let Those Fliers Get Away From You: Examples of misrepresentation through the use of fliers and advertisements by Real Estate agents and suggestions on how to mitigate the risks.
• Finding the Balance: Valuable information on how and why Real Estate agents and brokers should represent a property fairly by balancing its positive and negative aspects.

Second Homes

• Buying and Selling Vacation Homes - Case Study: The Outer Banks: Takes a look at the potential issues surrounding buying and selling a vacation home.

Understanding Why You Need Insurance

• Mortgage Brokers Beware: Explains why mortgage brokers need insurance and the steps to take to mitigate their risks.