Real Estate Malpractice Lawsuits

Real estate professionals include real estate sales persons, lawyers, land surveyors, engineers and environmental consultants. They must comply with real estate laws, agency laws and disclosure laws. Professionals have a fiduciary duty to their clients to treat them in a fair and ethical manner, as well as to protect their client's interests.

Their job includes explaining and advising clients about the practices and procedures involved in buying a home. Making sure that their clients understand the contract and comply with inspection and loan contingencies, understand the importance of reviewing surveys, title insurance documents and homeowner documents and understand the escrow process and closing.

Issues that Result in Real Estate Malpractice

When real estate professionals fail to do their job, they put their clients at risk of making the wrong decisions or contract breaches causing financial and emotional harm to their clients and others involved in the transaction. The consequences of their actions can be quite serious, especially if fraud is involved. Real estate professionals can lose their license and face stiff criminal and civil penalties in cases of fraud or misrepresentation.

The following are typical issues that can result in real estate malpractice:

• Zoning issues
• Title issues
• Improper contracts
• Disclosure omissions
• Relying on less experience personnel in the office to handle routine matters that escalate into more serious ones

Sometimes innocent mistakes occur, and therefore most real estate professionals carry professional liability insurance and/or llc liability insurance. In order to avoid a lawsuit and asset liability, it is recommended that real estate professionals maintain strong and open communications at all times with their clients. Telephone calls should be returned within 24 hrs and status reports or emails should be sent at least once a week. Other professionals should be brought in to advise the client about the home's systems, such as home inspectors, etc. Even after the closing, follow up telephone calls or letters should be made to make sure the client is satisfied. A happy client does not want to sue you.

Help from a Lawyer

If you are involved in a real estate malpractice lawsuit, you should hire a real estate malpractice attorney to represent you. Real estate malpractice matters are complex. The real estate attorney can advise you of your legal rights, obligations and responsibilities.