Hopefully, you have never been involved in any real estate litigation. If you want to keep the attorneys at bay, here is a list of behaviors to avoid — as well as some best practices that may keep you out of trouble.
Even if you have adequate errors and omissions insurance coverage, being a defendant in a lawsuit can have a huge negative impact on both you and your business. Being deposed by a superstar litigator is your worst nightmare. Everything you say can be twisted and turned against you in a legal dispute.
Making matters even worse, you can do everything right and still end up in litigation. Sometimes you’re just in the wrong place at the wrong time.
For example, there was one case where the seller failed to make a major disclosure about the property. The seller went bankrupt, so the plaintiff’s attorney turned to the agents and the other people involved in the transaction. When the attorney discovered that the painting contractor had errors and omissions insurance, the contractor was named as a defendant as well.