The “neutering” of the fiduciary Real Estate Sales Professional under the cover of CYA is becoming a problematic trend.
Over the past several months, I have heard of many things being taught in Pre-licensing and Continuing education classes that seem to be a trend of taking REALTORS out of the transaction lest we “get in trouble.”
Under the heading of: “Doing these things increases the chance of the REALTOR being SUED!”
“Don’t refer ANY Lenders, Inspectors, Title Companies, Contractors, etc . . . If something goes wonky, you’ll get SUED.
“Do not attend ANY inspections and do not look at any of the reports rendered or you’ll be liable in the event of unforeseen issues.”
“Do not provide Feedback to Listing agents after showing Buyer because that might, in some way, compromise the Buyer’s negotiating position” (Confidentiality breach?”)
“No communication with Lender or Title Company lest you be named in a fraud event”
and there’s more . . .
So . . . If we cannot do those things, what CAN we do?
For each of these NOT to do, we reduce our ability to protect our clients from harm.
The folks who are so worried about litigation reduce their “exposure” by reducing their participation in the transaction.
Meanwhile, other folks grumble about the inspectors who flag a “potential issue” but come up short of offering any reasonable solution or opinion as to the gravity of the issue . . . Instead, they recommend a “specialist to assess”.
Sure, there is always risk of litigation.
This is where what we do is more art than science.
Where do you draw the line demarcating “Stay away lest ye be sued” and “A fiduciary responsibility to protect and serve our clients”.
Having said all of the above, my hope is that all of these agents being taught these things will seek the advice and counsel of their Principal Brokers to determine what the “Broker Rules” in your office say about this.
Protect and serve!
If people are going to sue, they’re gonna sue – Valid or not!
Let’s not destroy our professionalism out of fear of frivolous lawsuits
More about this in today’s Drive time video