4 Tips for Avoiding Real Estate Lawsuits

Dealing with real estate litigation is a nightmare no agent wants to face. Unhappy sellers and uninformed agents can create a dangerous legal mix. Avoid the headaches and heavy legal fees associated with lawsuits by educating yourself and your agency. Be transparent, document communications and steer clear of problem clients to maintain your reputation and boost your profits. By following a few simple tips you can dodge major problems after the sale.

Consider Client History

Avoid any client with a history of real estate lawsuits. Warning signs include lengthy legal battles with other agencies or refusing to submit information such as inspection reports. If an individual has profited from suing a previous agency consider releasing the person immediately. You can choose to refer the client to a competing agency or perhaps cease contact with the individual completely. Let go poor client matches to make room for better matches and save yourself the headache associated with a lengthy, expensive lawsuit in the future.

Record in Writing

Archive conversations by using email frequently. Chatting on the phone might seem convenient but unless you record each communication documenting interactions can be difficult. Plaintiffs who claim that they received misinformation can be proved wrong if you document evidence to the contrary. Follow the good business practice of emailing consistently to better keep track of your business dealings and protect yourself against damaging lawsuits. Even if you never run into legal problems, documenting communications can help your agency run smoothly.


Under no circumstances should you attempt to cover up or hide how flaws. Disclose all that you know concerning a property to save yourself legal troubles in the future. Develop a stellar reputation by being honest about any work which needs to be done to the property. Less than scrupulous agents have tarnished the reputation of the industry. Do your best to create a positive perception of real estate agents by telling the truth. Release potential clients who do not want to move forward with the buy after hearing about extra investments. It is far wiser to honestly assess the real estate by fully disclosing any work which needs to be completed. Any litigation fees far outweigh the profits you might generate by making a sale. Explain any problems with the home to cover yourself.

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Do Not Offer Opinions

If a potential buyer wishes to know about neighborhood safety avoid sharing your personal opinion on the matter. Direct individuals to websites offering statistics related to crime rates. Offering your personal take can open your agency to litigation. Share links providing the cost of living and school rankings to let individuals make their own decisions.  Avoid speculating on damage within the property. Unless you fully know the cause of a large splotch on a wall or dark markings on the floor do not opine your views. Sharing your views can open you up to accusations that you deliberately explained certain problems did not exist within the dwelling.

About the Author: Ryan Biddulph helps you to avoid real estate lawsuits. If you live in Arizona and are facing Phoenix real estate litigation consider contacting Robert Mitchell.

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