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Real Estate Risk Management

Posted By Paul Xumsai on June 25, 2020 in Broker Management

Every business faces risk, including real estate businesses. Like the global pandemic that is spreading across the world, some risks are outside your control. Many other risks are entirely avoidable.

As a real estate professional, risk management includes a wide variety of concerns. Here are just a few ways real estate agents can get into trouble:

  • Giving advice outside your area of expertise
  • Overlooking mandatory facts and disclosures
  • Failing to protect clients’ best interests
  • Offering opinions instead of material facts
  • Accepting unearned gifts
  • Including and/or omitting certain information in your advertising

For U.S. brokers and agents, various local, state, and national laws, as well as the REALTOR® Code the Ethics, speak to each of these offenses. 

The consequences of violations are substantial, including damaged reputations, fines, legal actions, or even, and possibly imprisonment.

“I didn’t know,” is never an adequate excuse.

Global real estate agents dealing in international transactions face additional risk management considerations. Regardless of how your transaction crosses borders-whether you’re helping an international client with a domestic transaction or helping a domestic client in an international transaction-your due diligence checklist must include an expanded set of factors. 

 

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