When a real estate agent lists a home, some things are standard: marketing the home, collecting and negotiating offers, shepherding the transaction from contract to close. But there are any number of other tasks that can land on a listing agent's shoulders during a deal, from the mundane (dog walking, anyone?) to the significant (for example, making repairs). In the latter cases, could performing those services land the agent in legal trouble if something goes wrong? The answer may hinge on that agent's errors and omissions insurance. Do: Always read your policy Agents should read their E and O policy to determine what is -- and isn't -- specifically covered, June Barlow, general counsel and vice president for the California Association of Realtors, told Inman. "The real issue here is whether or not it’s a professional service that's covered" and how "professional services" are outlined in the policy, she said. "If you decide to walk the dog and and it's a valua...
- Agents should read their errors and omissions insurance policy to see what it does and doesn't cover.
- Tasks outside of unlicensed activity may give rise to denied claims. Performing such tasks may also be inefficient.
- That said, claims are almost always disclosure-related, according to the California Association of Realtors' general counsel.