Real Estate Broker
The Incredible Legal Liability Of real estate Brokers
One of the disadvantages of seeking a career as a real estate broker is that your chances of getting sued are quite high, due to the various forms of legal liability to which you will be exposed. Among these are:
(1) Contract Liability
The listing agreement between a real estate broker and a seller of real estate typically requires the broker to exercise her “best efforts” to find a “ready, willing and able” buyer for the seller. However, the term “best efforts” is notoriously ambiguous, and if the seller believes that a busy broker has not actually exercised her “best efforts” to locate a suitable buyer, she may be looking at a lawsuit seeking damages for the delay in selling the real estate that is attributable to her failure to exercise her best efforts. Even if she wins the lawsuit she may end up having to pay legal fees, and the time and worry investment alone could distract her from using her “best efforts” on deals with other clients.
(2) Licensing Regulations
As is the case with attorneys, real estate brokers are subject to certain professional standards of conduct, breach of which could subject the broker to liability. Many of these standards are imposed by statute (instead of rules made by, say, a real estate broker’s association) and thus have the force of law. The critical difference between an association rule and a public statute is that if you violate a private rule you are often liable only to have your licensed revoked, while if you violate a statute you can be sued for damages suffered by a seller. Of course most of these standards are common sense obligations such as honesty, fair dealing, etc.
(3) Tort Liability: Negligence and Fraud
Anyone can be held liable for negligence in just about anything they do that involves a risk – for example, if you drive carelessly and cause an accident you could be sued for committing a “tort”. But the critical difference in tort liability between laypersons and professionals is the “standard of care”. As an ordinary driver you will be held to an ordinary (not perfect) standard of care, breach of which will subject you to liability for any damages caused by your carelessness. But real estate brokers are held to a particularly high standard of care (ordinary care is not enough) when it comes to their professional activities, and can be sued for malpractice if they fail to meet this standard.
real estate agents can also be held liable under agency principles, but that is beyond the scope of this article.
DISCLAIMER: The foregoing is intended for reference purposes only and not as legal advice.
About the Author
Real Estate Law in Plain English
explains
real estate law
without the legalese.
Who is the best real estate broker to work for in New Jersey?
I am looking to take a real estate course and then the exam but would like to get details on who is the best broker (REMAX, Weichert, Blue…) to work for and get the best possible commision split and training.
To find out where you feel the best fit, call and make appointments with several brokers. They will be glad to answer your questions and concerns. Also ask for a tour so you can get a general vibe of the office. After doing your research you’ll know who’s the best.
Good luck!
Starting a real estate career : What Is a Real Estate Broker?
|
|
Realtor Real Estate Broker for Sale Sold Coffee Tea Travel Cup Mug $15.95 Realtor Travel Mug Bring a little bit of your “go get ‘em” attitude w/ you to work with this travel mug. Whether it’s with you in your car or on your desk at work, this travel mug is a MUST HAVE. Practical & convenient. Travel mug holds up to 16 ounces, with a snug plastic lid and two openings for sipping. |
|
|
Being a Real Estate Broker is not for wimps Occupations Mug (Green, Ceramic, 11oz.) $11.99 This Real Estate Broker Mug has undergone extensive quality control before reaching you. We have over 10 years experience in selling products on the internet. The items are created by us and are even customizable! Just contact our great customer service for any questions…. |
|
|
Real Estate Broker Coffee Mug by CafePress Instant Real Estate Broker Just Add Coffee. T-shirts, mugs, tote bags, teddy bears, hoodies and other apparel and gifts for Real Estate Brokers.. About our Mug: The perfect size for your favorite morning beverage or late night brew. Large, easy-grip handle. Treat yourself or give as a gift to someone special. Measures 3.75 tall, 3 diameter. Dishwasher and microwave safe.. Coffee… |
|
|
Calculated Industries 3415 Qualifier Plus IIIX Real Estate Finance Calculator $47.89 Gain instant access to P&I, PITI and FHA Payments, and complete buyer qualifying(view larger). Qualify home buyers right on the spot with the versatile, easy-to-use Qualifier Plus IIIX real estate finance calculator from Calculated Industries. Perfect for all real estate finance professionals, including agents, brokers, bankers, mortgage originators, title officers, trainers, and more. The… |
|
|
Calculated Industries 3430 Qualifier Plus IIIFX Real Estate Finance Calculator $48.50 Calculate multiple cash flows and internal rate of return (view larger). Qualify home buyers right on the spot with the versatile, easy-to-use Qualifier Plus IIIFX real estate finance calculator (model 3430) from Calculated Industries. Perfect for all real estate finance professionals, including agents, brokers, bankers, mortgage originators, title officers, trainers, and more. The Qual… |
|
|
Calculated Industries 3415-KITRE Qualifier Plus IIIX Real Estate Success Kit $59.95 The Qualifier Plus IIIx is the most versatile and easy-to-understand residential mortgage calculator on the market. Provide fast and accurate payment solutions and qualify buyers on the spot! Perfect for all real estate finance professionals – including agents, brokers, bankers, mortgage originators, title officers and trainers. Let the Qualifier Plus IIIx mortgage calculator put answers to all y… |
|
|
Sweden and the Shark $1.99 … |
|
|
Sweden and the Shark [HD] $2.99 … |
|
|
Allied California Real Estate School: EXAM CRAM DVD, Special Salesperson Edition [4-DVD set] Allied’s Real Estate License Exam Preparation program. Covers all the concepts found on the State Exam…. |
|
|
Calculated Industries 3415-KITMG Qualifier Plus IIIX Mortgage Success Kit $79.95 … |
|
|
Real Estate Broker Exam $26.21 This book is in New – Excellent condition |
|
|
Real Estate Broker Coffee Mug by CafePress $15 Instant Real Estate Broker Just Add Coffee. T-shirts, mugs, tote bags, teddy bears, hoodies and other apparel and gifts for Real Estate Brokers. Coffee Mug The perfect size for your favorite morning beverage or late night brew. Large, easy-grip handle. Treat yourself or give as a gift to someone special. Measures 3.75 tall, 3 diameter. Dishwasher and microwave safe. |
|
|
Florida Real Estate Broker’s Guide $79.17 No Synopsis Available |
|
|
Daddy: Real Estate Broker Dad Baseball Jersey by CafePress $32.5 My daddy is a/an Real Estate Broker t-shirt, sticker and apparel. Show your love and support for your dad. Dad Baseball Jersey Our 100% cotton Baseball Jersey is a sporty hit with both men and women whether you’re in the game or just looking the part in great run-around casual-wear. Choose red, blue or black sleeves. 6.1 oz. 100% heavyweight cotton. Standard f |
|
|
Florida Real Estate Broker’s Guide 2002-2003 $78.2 No Synopsis Available |
|
|
Real Estate Broker Work For Food Humor White T-Shirt by CafePress $22 If you or someone you love or hate has been affected by the real estate market crash, this is the gear for you Great gift for the suffering realtor with a sense of humor. May the force be with you Humor White T-Shirt Tee, TShirt, Shirt The white t-shirt is a timeless classic for a reason; it should be a staple in every wardrobe. It is clean, simple, and durable. The best part is you can wear it with anything. This 100% cotton T-shirt is so comfortable you’ll want to wear it to bed. |
|
|
Off Duty Real Estate Broker Long Sleeve Dark T-Shi Funny Long Sleeve Dark T-Shirt by CafePress $32.5 Yes, you’re a real estate broker. But right now you’re off duty. On vacation. It’s the weekend. YOUR DAY OFF Funny Long Sleeve Dark T-Shirt Tee, TShirt, Shirt Our Long Sleeve T-Shirt adds an extra element of style for a casual night out, or to keep the chill off. Made of 100% ringspun cotton for maximum comfort, put on your new favorite T-Shirt from a favorite, trusted name in t-shirts, Hanes.6.1 oz. 1 |
|
|
Barron’s Real Estate Licensing Exams : Salesperson, Broker, Appraiser $15.81 No Synopsis Available |
|
|
California Real Estate Practice Exams for the Broker License Exam $213.01 This book is in Used condition |
|
|
Bundle: Real Estate Law Course Broker Package#17 $106.29 No Synopsis Available |
|
|
Cram for the Exam! Your Guide Pass NY Real Estate Broker’s Exam $33.8 No Synopsis Available |
|
|
Audio CD-New York Real Estate for the Salesperson & Broker $35.42 No Synopsis Available |
|
|
Broker to Broker: Management Lessons from America’s Most Successful Real Estate Companies $36.03 No Synopsis Available |
|
|
Real Estate Exam Prep: Connecticut Broker – 1st Edition : The Authoritative Guide to Preparing for the Connecticut State-Specific Broker Exam $29.25 No Synopsis Available |
|
|
Real Estate Sale Wall Clock by CafePress $15 Real Estate occupations wall clocks with unique designs. Great gift for any Real Estate Agent or Broker. Sale Wall Clock Decorate any room in your home or office with our 10 inch wall clock. Black plastic case. Requires 1 AA battery included. |
|
|
Live Love Real Estate Construction Sweatshirt by CafePress $39.5 You love remodeling and renovating homes and property. Great gift for your favorite realtor, real estate investor or developer, mortgage broker, general contractor, house flipper, or real estate agent Construction Sweatshirt Tee, TShirt, Shirt Warm up in our stylin’ Hanes Heavyweight 90/10 cotton/polyester sweatshirt. Thick but not bulky, for maximum comfort and durability whether you’re working out or hanging out. 10.1 oz. patented PrintPro174; fabric in a 90/10 cotton/polyester |
|
|
Ask Me Real Estate Occupation Cap by CafePress $17 Promote your real estate business A unique marketing idea to start a conversation with potential home buyers or sellers Great gift for your favorite realtor, real estate agent or mortgage broker. Occupation Cap . Our adjustable, 100% brushed cotton Cap is unstructured and an ideal way to beat the heat. Wear it anytime you want to keep the sun off or cover up a bad hair day. It features a sturdy low profile brim, sweatband, and adjustable closure, as well as Pre |
|
|
Broker $21.99 Broker – T-Shirt |
|
|
Practical Real Estate Methods for Broker, Operator & Owner: Thirty Experts on How to Buy, Sell, Lease, Manage, Appraise, Improve and Finance Real Estate $30.66 No Synopsis Available |
|
|
Basic Real Estate Report $39.95 Basic Real Estate Report |
|
|
Comprehensive Real Estate Report $24.95 Comprehensive Real Estate Report |
|
|
21 Things I Wish My Broker Had Told Me; Practical Advice for New Real Estate Professionals $16.84 No Synopsis Available |
|
|
Real Estate Exam Prep: Connecticut Combo -1st Edition : The Authoritative Guide to Preparing for the Connecticut General and State Broker Exams $51.19 No Synopsis Available |
|
|
Live Love Real Estate Construction Jr. Raglan by CafePress $28.5 You love remodeling and renovating homes and property. Great gift for your favorite realtor, real estate investor or developer, mortgage broker, general contractor, house flipper, or real estate agent Construction Jr. Raglan Our Jr. Raglan from American Apparel is body contoured and baby soft. Made of 100% superfine combed cotton baby rib, this raglan provides the perfect look for any season. 5.8 oz. 100% Ultra-fine combed ring spun 1×1 baby rib cotton. Size up |
|
|
Ask Me Real Estate Occupation Women’s Dark T-Shirt by CafePress $26 Promote your real estate business A unique marketing idea to start a conversation with potential home buyers or sellers Great gift for your favorite realtor, real estate agent or mortgage broker. Occupation Women’s Dark T-Shirt Tee, TShirt, Shirt The women’s Dark T-shirt is comfortable, casual, and classy. The shirt is simple, flattering and will quickly become a favorite. The pre-shrunk 100% cotton is soft and durable.5.6 oz 100% cotton. Standard Fit. |
|
|
Ask Me About Real Estate Occupation iPad Case by CafePress $39.5 Promote your real estate business A unique marketing idea to start a conversation with potential home buyers or sellers Great gift for your favorite realtor, real estate agent or mortgage broker. Occupation iPad Case Pad the iPad. This new protective case for the iPad is a cool cover that brings originality and personality to devices. Perfect for iPad lovers, these hard cases help safeguard iPads from scratches and damage.. Applereg; and iPadreg; are trademarks |