real estate referals

[John S. Rabi]

Glen, you are right. However, "agency" has nothing to do with "liability." There was a recent lawsuit when the Buyer's Agent was present at the inspection and she pointed out some defects that were not noticed by the others. Helpful agent, right? Apparently, there were more defects and the court ruled that the agent was part of the inspection and was negligient! That's exactly why E&O insurance companies, as an exclusion, prohibit the agents to be part of the inspections. The buyer has the right to be present and the Buyer's Agent has the right to be present. Howevr, should there be a lawsuit, the agent (and the real estate company) can be held liable and their E&O insurance company will not represent them. That's why the companies prohibit the agents to be part of the inspection.
To be honest with you, I personally don't think real estate agents are quilified to do inspections and the exclusion make lots of sense.

Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB
http://www.JohnRabi.com
Typically Tropical Properties


Edited by - John S. Rabi on 06/24/2007 12:49:28