Talk to anyone who has been through the process and they’ll likely agree that buying or selling a home is one of the most significant, emotional, satisfying, and potentially frightening and frustrating events in one’s life. Take Sharon and Sam, for example—a teacher and an entrepreneur, recently retired, who decided to sell their sprawling three-level home and downsize so they could be free to travel the world now that they have time on their hands. The agent they selected to put their home on the market was a reputable agent with lots of experience with homes in that area, and a large client base to whom she could present the property. Just weeks after an open house, the retired couple received an offer for their home, and accepted the full-price offer with pleasure. Little did Sam and Sharon know that happiness would soon turn into a headache and ultimately a lawsuit. That’s because, when it comes to errors and omissions, real estate professionals—no matter how experienced—can make a mistake that ends up causing harm to their clients. |
A fast-moving deal moved just a bit too fast
The couple’s agent, Judy, worked with the buyer’s agent who represented some very aggressive buyers who insisted on closing escrow in a matter of a handful of days. The parties agreed to a very accelerated schedule but in the midst of the rapid-fire inspections, contingencies, exchanges of special requests, and exceptions, Judy made a critical error; she missed completing a document that was critical to the deal closing on time. Between the new owners being upset about not being able to move in as initially scheduled (and demanding compensation for the delay), and Sharon and Sam being upset about the late closing, which caused them to have to postpone travel arrangements (with substantial charges for the last-minute reservation changes), the costs resulting from the mistake amounted to several thousand dollars.
Coverage protects in the event of mistakes
Fortunately, Judy had purchased errors and omissions real estate coverage as part of a comprehensive insurance package recommended by her professional insurance agent. Judy found that the policy covered her for the mistake, so rather than having to come out of pocket to reimburse the parties for their losses. Talk to a professional agent to learn more about this important coverage, because with so many complexities and moving parts involved in every sale—and the fact that people, even experienced professionals, are capable of human error—the risk of making a grave error in the course of conducting business cannot be denied. Call an agent today.
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