Real estate professionals oftentimes find themselves fielding a variety of difficult questions and facing some tricky transactions. Having partnered with realtors for decades, our team compiled our top three tips for realtors to reduce their potential liability and better serve their clients.

1. Put It in Writing

Documentation is key for any transaction, but it does not only apply to agreements and contracts. Document all communications throughout the buying and selling process – including emails and texts. By putting everything in writing, realtors can increase clarity and help protect themselves and their clients should an issue arise.

Advice for Implementation: Save your emails. Keep a dedicated folder for each client. Develop the habit of summarizing verbal discussions in a follow-up email or text message. This not only provides a record but gives all parties an opportunity to confirm they are on the same page.

2. Stay in Your Lane

Real estate professionals are oftentimes asked to do a variety of tasks that do not fall under their job description. This can potentially open them up to liability down the line. Avoid providing services and advice outside your scope. For example, never perform electrical work, provide legal advice or give opinions regarding a property survey. Instead, act as a referral source to professionals who can provide these services.

Advice for Implementation: It is important to build a network of trusted professionals, such as attorneys, licensed contractors, professional surveyors and lenders. This not only helps protect you from liability but enhances your credibility and your client’s overall experience.

3. Acknowledge, Don’t Admit

Handling complaints is an inevitable part of the real estate business. While it is important to acknowledge concerns, agents should be cautious not to admit wrongdoing. This approach allows you to address perceived issues while protecting yourself from potential legal repercussions.

Advice for Implementation: If representing a buyer who later complains about a possible property defect, acknowledge receipt of the correspondence but try to avoid apologizing or saying anything that could be construed as an admission of fault or liability. Serious complaints should be sent to your broker to decide if an attorney or the broker’s insurance carrier should be notified.

Implementing these tips can help you reduce your risk of legal issues as a real estate professional. They can also elevate the standard of service you offer your clients.