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Real Estate Professional Liability. The real estate business
touches almost everyone's life. Virtually all of us, at some time or
another, require the services of a real estate professional, whether it's
to buy or rent an apartment or a home or commercial property, or to buy a
business. Real estate salespeople perform a broad range of services. They
prospect and sell. They may serve as dual agents, both to their company and to
the buyer and seller. They rely heavily on technology and employ good human
relations skills. They have to know the market and the law.
The threat of a lawsuit is always a possibility for any professional, regardless of
actual liability. Real estate brokers operate in a highly regulated industry within an
increasingly litigious society. Add these elements together and you have a profession
that faces a broad range of errors and omissions (E&38;O) liability exposures. Some of
the possible liability pitfalls for a real estate professional are:
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Misrepresentation
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Undetected pest damage, sewage, or septic problem
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Error in home inspection; undetected
problems with sewer or septic system, foundation, ceilings, roof, leaky pool, etc.
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Legal error
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Failure to detect intentional misrepresentation by seller
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Error in zoning interpretation
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Error in comparative market research report
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Undetected pollution (in soil, in well water, etc.)
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Inaccurate appraisal
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Inadvertently offered bad advice
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Bank mortgage error
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Overlooked property easement
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Breach of confidentiality
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Broad coverage for professional services
associated with the real estate industry, including coverage for
firms involved in residential sales, commercial sales/leasing, property
management, consulting, appraisal and mortgage brokering
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First Dollar Defense
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Fair housing coverage
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Environmental hazards coverage
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Real estate development services coverage
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Contingent bodily injury and property damage for renovation services
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Shared expense deductible
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Worldwide coverage
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