When dealing with commercial property sales and leasing, real estate law can be a complicated matter. Of course commercial real estate agents want to get everything right, not only to facilitate a smooth transaction for their customer, but also because these types of sales have a big financial liability attached to them. Not following the law, or not being educated about the law, can certainly increase a commercial real estate agent’s errors and omissions (E&O) risks.
The most important thing to remember as a commercial real estate agent is that real estate laws do vary by state, therefore agents and brokers much be well versed in the ins and outs of their state, and realize that if they venture to another state they will need to get up to speed.
Last year, the National Association of Realtors presented the Commercial Intelligence Briefing Podcast in which experienced real estate lawyer Jim Hochman stated that the exclusive listing agreement is the “heart of a broker’s business,” and is essential to legal protection for the commercial real estate agent. Hochman noted that the two most common legal issues for commercial real estate brokers that he’s dealt with are an agent’s failure to accurately represent details concerning the property in question or failing to clarify who you represent as a broker.
When you work in real estate, businesses and individuals are trusting you with their most valuable assets; their properties. Due to the stakes being so high, E&O lawsuits certainly do occur; for the two reasons mentioned above in addition to failing to meet a client’s expectations or incorrectly documenting any decisions or actions.
At Tri-State Insurance Agency, we understand the unique business risks you face as a Commercial Real Estate Agent or agency owner. We offer comprehensive insurance policies to offer you the best financial protection possible, from EO Insurance New Jersey to various other Business Insurance policies. Please contact us today at (888) 990-0526 to learn more about our products and services.