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Why Do Realtors Need SF Professional Liability Coverage?

Why Do Relators Need SF Professional Liability Coverage

Why Do Realtors Need SF Professional Liability Coverage?

The San Francisco real estate industry can be an incredibly prosperous field for savvy professionals who understand the nuances of customer service and direct sales. However, there are a number of common pitfalls that SF real estate professionals often encounter through the course of their practice, many of which can leave them greatly exposed to a number of common legal challenges.

Here are a few common mistakes that can crate big professional liability dilemmas.

  • Don’t speak to what you do not know. The real estate industry is a trust based profession. The best way to build trust and rapport with your clients is to show them that you have their interests in mind and the knowhow to find them the perfect fit for their needs.  It is important to never make speculations or assertions which are beyond the scope of your knowledge or control. Doing so can leave you exposed to professional errors claims should a buyer act upon any misinformation you provide them.
  • Overstepping the Fair Housing Act regulations. Many real estate personnel are unaware that even small, seemingly harmless comments could be violations of state and federal fair housing legislation. SF real estate professionals are prohibited from asking questions about a buyer’s race, religion, ethnicity, sexual orientation and other sensitive matters, as well as from providing information that would imply the economic, social or demographics of an area.
  • Be aware of federal and local “Stigmatized Property Laws” which require sellers and agents to answer truthfully and properly disclose whether a property was the site of a known homicide, suicide, or felony.
  • Failure to disclose the history of the property. Real estate professionals are required by law to disclose any known pre-existing condition. Not doing so could be considered an intentional misrepresentation and could potentially lead to accusations of fraud, breach of duty or professional misconduct. It is the real estate professional’s responsibility to advise their clients, thus it is essential that you inform sellers that omitting past damages, repairs, and alterations to a property could lead to legal complications.

As a professional in the San Francisco real estate industry it is essential to protect yourself from exposures to professional liability claims. At DiNicola Insurance Services  we offer comprehensive San Francisco business insurance solutions for real estate professionals and habitation property owners. Our SF Professional Liability coverage can help protect property managers, owners and realtors from the full gambit of liability risk exposure associated with your business practices. For more information about any of our offerings, give us a call today at (888) 990-0526.

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