War Stories are claims scenarios that go a step further to provide the
outcome of the claim and provide helpful risk management tips.
Commercial real estate agent, Dana Smith, was hired by Justin Brown to list his commercial building. Days after the listing was posted, she received a contract offer to purchase the property. When Dana contacted Justin to discuss the terms of the offer, he told her he was very busy with another business transaction and would give her authorization to sign the offer on his behalf as long as the purchase price would net him $500,000.
Property managers should solicit multiple bids for services to ensure the best services at the best pricing. A property management professional has a fiduciary duty to act in his or her client’s best interest and to put the client’s interest above their own.
Violating the terms of a non-disclosure agreement can have disastrous consequences.
The Landslide Brought it Down
When selling properties a real estate professional should be aware of site conditions that may impact a property. Waterfront, ocean view homes are susceptible to flooding and soil issues.
Many people assume that if photos (or videos) appear on the internet anyone can use them for any purpose without permission. They sometimes assume that if it is on the internet and there is no copyright symbol or watermark that means there is no copyright protection. The opposite is true: all of these works have some form of copyright protection that is not lost just because they are on the internet.
Money Down the Drain
As a real estate agent, your best bet is to make certain that you disclose anything regarding the property that you have knowledge of, whether it is good or bad.
Get Your Facts Straight
This story examines what could happen when there is a lack of communication between a realty services company and a lender combined with errors in the information presented in a broker price opinion (BPO) of the property.
If You Play with Fire You Will Get Burned
Find out what could happen when you sublet a property and don't execute proper management techniques.
Wait Until It's Done
This claims scenario provides an overview of what can happen when an appraisal is conducted without sufficient data to support the findings.
I Forwarded It Already...
This claims scenario overviews the story of a real estate agent who failed to follow up on an email that included an inspection report. The lack of oversight resulted in a suit that was three times the purchase price of the home.
Pregnant? You're Fired!
This claim illustrates the importance of having employment practices liability insurance.
Missing in Action
Overviews the case where a real estate agent fled the state after making a deal, leaving her clients and her company in trouble.
Signed, Sealed, Defaulted.
Find out what happens when a real estate agent solicited inappropriately and did not take into account his client's ability to pay.
Did Someone Say Sinkhole?
Find out what happens when a real estate agent did not fully disclose important information about a property.
The View May be Nice But it Comes With a Price
Overviews the case when a real estate agent did not properly research important facts about the property she was listing.
Being Your Own Agent Could Cost You
Learn why a real estate agent should be careful when selling their own personal property through their real estate firm.
It Takes Years to Build Trust, and No Time to Destroy It
Looks at the case concerning a property manager who failed to effectively manage his employees.
All in the Family - A Story of Conflicts in Property Management
Explores the case of a management company that was stuck in the middle of a contract dispute between three sisters.
Do Not Commence Without Consent
Find out why inexperienced appraisers need to follow proper protocol when appraising unfinished properties.
The Pitfalls of Ignorance
Learn why it's important for real estate professionals to fully understand the transactions with which they are involved.
The Case of the Conflicted Loyalties
Explains the necessity of understanding real and perceived conflicts of interest in a real estate transaction.
Disclose the History to Avoid the Misery
Discusses the effects inadequate disclosure can have on all parties involved in a real estate transaction.
The Physics of Due Diligence
Explores the case of an agent who engaged in a transaction she was not capable of handling.
Loyalty and Honesty Go Hand-in-Hand
Analyzes the discriminatory practices of a real estate broker and mortgage company.
Home Histories Shouldn't Be Mysteries
Explains the importance of disclosing all information to the buyer before the property is sold.
Not Everything is Coming up Roses
Analyzes the actions of an agent who did not properly document her phone conversations with her client.
The House and the River
Explores the case of a dual agent who did not fully disclose the extent of a problem with a home with the buyers.
Know Your Boundaries...Or Pay The Price
Analyzes the details surrounding a real estate agent who mistakenly sold the wrong lot of land.
It's All In The Details
Looks at the effects of a mistaken price adjustment that wasn't caught until the contract was signed.
Fail to Disclose and Pay Through the Nose
An IRS 1031 Code error that cost both the seller and the agent time and money.
Stuck in the Middle
A lesson why not to sign anything for your client, in any situation!
When the mere passing along of information can get an agent into trouble.
When the Price Isn't Right
Inexperience ensnares two agents to the tune of $100,000.
Undisclosed moisture leaves listing agent all wet.