Tuesday, April 15, 2014

Understanding Real Estate Errors and Omissions

A real estate purchase or sale is one of the single most important financial decisions an individual can make. Not only does this decision have significant impact on financial health, it also sets gears in motion for numerous subsequent decisions and opportunities related to quality of life. Most individuals who look to purchase real estate realize the implications of their decision on all aspects of their life. As so, most individuals look to outside sources for guidance. If a real estate purchase goes bad and you were involved in the decision making process, you may face as many, if not more, negative consequences as the purchaser themselves.
Real Estate E&O Application
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As guides to these life changing decisions, real estate agents and property managers are exposed to errors and omissions risks everyday, no matter how meticulously they conduct their business. In short, Real Estate E&O coverage protects against financial losses from lawsuits filed due to error, omission, or negligence in regard real estate agency duties. Increasing complexities of the real estate market have only intensified the need for errors and omissions coverage when it comes to marketing property.

Real Estate Claims

According to a recent article Realtor Magazine and The National Association of Realtors, the biggest legal liabilities for businesses in the real estate industry are currently highlighted as:
  1. Social Media: inaccurate information posted, failure to comply with licensing regulations and laws, libel/defamation 
  2. Short Sales & Foreclosures Laws and Regulations: forcing agents to understand and interpret complex legal documents from banks and client communication 
  3. Their Own Words: Discrimination and perceived bias or misstatement/misrepresentation

Recent Claim: Sexual Escapades and Real Estate?

A New Jersey real estate agent was brought to court in December of 2013 after being accused of purposely deterring buyers from visiting a house on the market so he could use it for his own “sexual escapades.” The agent in question allegedly kept the home above market value to ensure buyers would stay away. Hidden cameras placed inside the house caught him engaging in sexual activities on ten different occasions inside the New Jersey home. The homeowners are currently seeking compensatory damages for breach of contract, trespassing, invasion of privacy, infliction of emotion distress and other civil counts.

Since the late 2000’s implosion of the US housing market, professional liability lawsuits brought against real estate brokers and agents have skyrocketed. It has never been more important to review the coverage that your real estate risks have in place with Apogee today!

Real Estate E&O and Apogee

At Apogee we can offer coverage for residential real estate sales, property management, commercial real estate sales and real estate appraisers. We offer extremely competitive rates for the value we can bring to clients with access to over 50 "A" rated or better markets, expertise and quick turnaround times.

To better understand the value Apogee can bring to real estate professionals, take a look at some recently bound coverage and available markets here.

Put Apogee to work for you on your next real estate submission. We look forward to working with you!

Ready to Fill out an Application?

Please submit all completed applications, in addition to application loss runs and current declaration pages to submissions@apogeeinsgroup.com 

Contact Info

Michael Cavanaugh
Assistant VP
Ext. 7029