The real estate market is detail driven and complex, with many issues competing for the attention of every REALTOR®.
Pay attention to detail
However, taking the time to make sure your listing is complete and accurate, and that the property is suitable for your buyer can prevent errors that may otherwise lead to litigation.
Mistakes can happen when REALTORS® rely on historical property information in the MLS® System or fail to proofread their listings. The listing agent is responsible for ensuring the accuracy of their listings.
Remember, most claims happen at the time of listing a property.
Know your listing
Your listing is more than just the building, the land, the details of the title, or what the seller wishes it to be. There are also zoning bylaws, restrictive covenants and active applications for change of use that could impact how the property is used in the future.
Additionally, RECA requires that sellers and their REALTORS® disclose any material latent defects and, legally, listing agents expose themselves to liability if they fail to include this information.
Even if an issue is remediated – whether it originated from flooding, grow-ops or mould – it is always better to disclose. If the new homeowner experiences unforeseen issues linked to the undisclosed defect, you may have a lawsuit on your hands. When buyers feel they have been wronged, they are more likely to go to trial.
Although it’s not mandatory, it’s also best to disclose if a property is stigmatized to stay transparent with potential buyers. As Dave De la Ronde, senior vice-president for REIX, says, “If you don’t disclose, the neighbours will.”
Register for more REALTips
For more information on errors and omissions, join us on April 14 with guest speaker Dave De la Ronde for a discussion about REIX policy, requirements and exclusions, and the legal process, with a focus on avoiding litigation related to areas such as square footage, title, dower rights, disclosure, GST, listing and selling condos, home inspections, and more.
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