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Avoid Legal and Ethical Pitfalls

The measures agents and brokers need to take to avoid legal trouble can feel onerous at times, but dealing with a lawsuit can be much worse. Legal action by a buyer or seller, a fair housing complaint, or an alleged violation of the National Association of REALTORS® Code of Ethics could result in a fine, penalty, or judgment for damages, not to mention lasting damage to a professional’s reputation.

In today’s litigious environment, agents and brokers need to mitigate the risk of liability—being held legally responsible for conduct that results in a loss or injury to another person. That’s especially important as 2020 saw a spike in reported errors and omissions claims, continuing a year-over-year trend of increased litigation against REALTORS®.

Here are some of the seven issues that have legal or ethical pitfalls for agents and brokers.

  1. Multiple Offers

  2. Seller Disclosures

  3. Fair Housing

  4. Wire Fraud

  5. Social Media

  6. ADA Website Accessibility

  7. Do Not Call Registry

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