Must-Have Safety Guidelines for Real Estate Agents

From the article, “A Real Estate Agent’s Personal Safety Guidelines,” by Brent Bowlin, http://www.businessknowhow.com/homeoffice/personal-safety.htm
This safety checklist, though written with real estate agents in mind, is applicable to anyone working from home or in an office alone. Get the Dos and Don’ts for keeping yourself safe here.

A major concern for REALTORs is personal safety. Many times the REALTOR is working alone in showing a property, having an open house, or manning the model house in a new subdivision. Some personal safety issues should include:

  • On the first meeting of a client, always meet a new client at your office, never at a property. Get as much personal information as possible. A copy of the driver’s license is a good start not only for safety, but also for the client database.
    During this first meeting, if you have any suspicions or uneasiness about a client, do not go to the showing alone, no matter what time of day. Ask another person to accompany you. If you are at an open house and you feel that you are in danger, leave the home and seek assistance.
  • Always drive your own car to the property as this might be the only means of escape. Keep your car locked while driving to the property and after you park it. On the way make notes on the type of car, color, and license plate number and call the office with this information. Once at the property do not park your vehicle where it can be blocked.
  • Always follow the prospect through the home and never let them get behind you. Your attention should be focused on the client, not on the house.

Here is a checklist to follow for safety:

  1. When a person comes through the office to view your model homes, have them complete a guest register that includes making a copy of their driver’s license. Get this information back to the office by fax or e-mail and let the office know it is coming.

  2. Keep the keys to your vehicle and your cell phone with you at all times. Keep your handbag locked in the trunk of your vehicle rather than in your desk.

  3. When closing the model homes for the night never assume that the home is vacant. Be familiar enough with each home to know the exits. Check the interior of the house prior to locking the doors, working from the top floor to the bottom, back of the house to the front, locking the doors behind you. Be aware of your surroundings. Be prepared to protect yourself.

  4. Enroll in a self defense education course to assist you in protecting yourself until someone can respond to your call for help. Never assume that you can talk your way out of a situation. Look for and take the first opportunity to escape.

The DO list:

  1. Take the safest and best-lighted route–day or night–while driving to appointments.

  2. Always inform your office of where you will be, who you will be with and when you will next be in touch. Make sure the person you are meeting knows that you’ve given your office this information.

  3. Be aware of the neighborhood in which you are showing a listing. If the neighborhood poses any possible threat to your personal safety, take another person with you.

  4. Allow the client to proceed ahead of you while showing the property. Make sure you have previewed the property and know all of the accessible exits. Leave the doors unlocked for easy exit. Carry your cellular telephone with you.

  5. Establish a method of being able to relate an emergency situation to the office or a contact person.

  6. Have a secret phrase to notify the office you are in trouble such as “Pick up dog food” when you don’t have a dog.

The DON’T list:

  1. Hold an open house alone, if at all possible. Working with a partner allows you the luxury of having someone available to call or go for assistance if needed, and someone to help monitor how many people are in the house. If you must do an open house alone, stay near the door and let the prospect look through the house alone. Keep all valuables–jewelry, money, guns, etc.– locked away.

  2. Host an open house at a property you have not already previewed. Know the location of all of the exits and how to contact the closest neighbors. Make sure that if you use the backyard as an escape route that there is an exit out of it. Make sure all of the exit doors are unlocked during the open house.

  3. Wear expensive jewelry and, if at all possible, keep your handbag locked in the trunk of your vehicle while you are hosting an open house. Have your car keys readily available by keeping them either in a pocket or clipped to a belt.

  4. Assume everyone has left the premises at the end of an open house. Check all of the rooms and the backyard prior to locking all of the doors. Be prepared to defend yourself, if necessary.

  5. Show a property alone at night, especially if it is vacant.

What the office can do to protect its agents:

  1. Each office should keep a file on each agent’s vehicle — make, year, model, color and license plate number.

  2. Each agent should leave a daily schedule of outside appointments with their office showing client names and times.

  3. Always meet your client, prospect or buyer at your office and have them complete an information form, taking a photo of their driver’s license. The information form should contain vehicle information, also.

  4. Have each agent carry a log to write down prospective client‘s name, driver’s license and vehicle information.

  5. At open houses, a guest registry should be kept for all persons viewing the house. This registry should include vehicle information.

  6. Never have an agent show a property as the result of only a telephone call. Always meet them at the office and have them complete an information form.

  7. Do not list your home address or telephone number on your business cards.

  8. All agents in your office should use only their first initial and last name on their “For Sale” signs to conceal gender and prevent anyone other than a personal acquaintance asking for you by name.

Many of these points may already in practice for the profession. Look to these procedures as also a safety concern. These safety tips should become second nature with little thought to be truly effective.

Real Estate Agent Misrepresents

Sometimes the past is one of the best learning tools around! Use the following Real-Life Errors & Omissions Claim Situation involving an agent misrepresenting her expertise to avoid a similar legal showdown happening to you in your everyday real estate career. And be sure to have a good Real Estate E&O Insurance policy in place to protect you in case you find yourself in the middle of a court battle over acting outside of your expertise.

A residential Real Estate agent was approached by a potential buyer who was looking for property where he could live with his family, as well as operate a pest control business. The agent advertised herself as being an expert in residential and commercial real estate.

Problem:
The agent was unfamiliar with the nuances of commercial zoning, and no procedures had been implemented by the managing broker to identify and correct mistakes made by agents.

Mistake:
Inexperienced with zoning issues, the agent located a piece of property that was listed by another “in-house” agent. Believing that it would be suitable for both her buyer’s residential and business needs, she incorrectly assumed that the property’s zoning would allow her client to operate his business, and thus encouraged him to purchase it.

Result:
About one year after the buyer closed on the property, he received a notice from the city advising him that the operation of a pest control business did not conform to the zoning regulations. After the city denied his request for re-zoning, a lawsuit was brought against the agent and her broker seeking compensatory damages, lost revenue, and attorney’s fees. The buyer alleged that he relied on the expertise of the agent and that the broker failed to properly supervise the actions of the agent.

Prevention:
In this case, the agent and broker could have avoided litigation if pre-established office procedures were in place. The agent would have served her client better by seeking advice from the broker or other zoning expert—and by not misrepresenting herself as an expert in areas unfamiliar to her. The broker may have also helped avoid litigation if he closely supervised the agent throughout the transactional process. In the end, the litigation was resolved after it became apparent that the agent and broker would likely be found liable if the case were ever tried.

Do you have a similar story involving office procedures, misrepresentation, or acting outside of your expertise to share with us? Send us your learning experience or just let us know what you think about this one! Just leave a reply below!

If you have any questions about Pearl’s Errors & Omissions Insurance for real estate professionals, give us a call at 800.447.4982—whether you’re looking for a new E&O policy or have questions about your current one. We’d love to hear from you!

You can also visit our website for E&O insurance just for real estate professionals, www.pearlinsurance.com/eo, to find out more about our quality Errors & Omissions program, including policy features, risk management tools, and much more. Or get a quick estimate now!

REALTOR Blamed for Soil Problems

Sometimes the past is one of the best learning tools around! Use the following Real-Life Errors & Omissions Claim Situation involving an agent not recommending an inspection to avoid a similar legal showdown happening to you in your everyday real estate career. And be sure to have a good Real Estate E&O Insurance policy in place to protect you in case you find yourself in the middle of a court battle over acting outside of your expertise.

A Real Estate agent was working with prospective buyers who were searching for a residential property with an in-ground swimming pool or level backyard where a new pool could be installed. The agent showed his buyers several properties before they decided to submit an offer on a home that met the latter criteria.

Problem:
The property had a history of soil settlement problems resulting in some sinkhole activity and shifting of the home’s foundation. The owners provided a Sellers’ Property Condition Disclosure revealing the problem, together with an undated soil study report detailing a history of settlement it deemed to be “relatively minor.”

Mistake:
The agent, unfortunately, relied on the report as being factual and failed to recommend to his buyers that they commission their own soil study or have a structural engineer investigate the current extent of the problem.

Result:
After the close of escrow, the buyers hired a swimming pool contractor who quickly discovered that the soil was not stable enough to complete the installation. The buyers then decided to have an expert investigate both the soil condition and the home’s structural integrity. The expert removed the drop-down ceiling tiles in the finished basement and determined that the walls were shifting and the floor joists had been sistered, leading him to conclude that the soil condition was more extensive than what was represented in the sellers’ report. The buyers subsequently sued the sellers alleging intentional misrepresentation and the agent alleging that he negligently recommended accepting the findings of the soil study report and for failure to recommend updated inspections. The parties ultimately resolved the litigation for close to six figures.

Prevention:
An agent should be very leery about accepting expert reports presented by sellers – especially undated reports since they may not reflect current conditions of a property. Also, an agent should never attempt to interpret reports since he or she may likely be acting outside the scope of their expertise. Always recognize when to ask for help from another professional and suggest to buyers when to use the services of professionals such as home inspectors and structural experts. It is essential the buyers realize they have the right to request any type of property inspection and that inspection contracts and reports may contain disclaimers. If the buyers decide not to do so, document this in writing and have them acknowledge in writing.

Do you have a similar story involving misrepresentation to share with us? Send us your learning experience or just let us know what you think about this one! Just leave a reply below!

If you have any questions about Pearl’s Errors & Omissions Insurance for real estate professionals, give us a call at 800.447.4982—whether you’re looking for a new E&O policy or have questions about your current one. We’d love to hear from you!

You can also visit our website for E&O insurance just for real estate professionals, www.pearlinsurance.com/eo, to find out more about our quality Errors & Omissions program, including policy features, risk management tools, and much more. Or get a quick estimate now!