What Could Possibly Go Wrong? Common Pitfalls for Real Estate Professionals, and What To Do About Them – Part 1 The work of “real estate” is truly a collaborative one. Every person and business are dependent on another person and business to get the job done. To state “No person is an island” could not be more true. The specialized work of agents and brokers, appraisers, lenders, attorneys, home inspectors and title agents is woven together to achieve a common goal. This collaborative effort is mostly successful , but participants should understand that their risk of problems and potential insurance claims and lawsuits is multiplied by each business, and their employees and agents, involved in the work. With three decades in the insurance industry, including the last sixteen years working with real estate professionals, the author has witnessed thousands of insurance claims, ranging from the legitimate to the fantastical. There were few occasions when only one business or person was sued. Liability and responsibility for any damages is not determined at the time a claim is made, but after the lengthy process of interviews, depositions, mediation, hearings and/or trials. While anyone can be sued, it is what happens next that determines who wins or loses The average time for resolution of a claim against a real estate brokerage or agent, for example, is about one year. Statistics show that 25% of all real estate will be sued during their career.
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