The real estate market is still growing in many markets. With a housing shortage in large metropolitan communities, it is important to understand vicarious liability real estate agents can pass on to their clients.
The experts at Highland Risk Services states that a single agency can pass on vicarious liability to the seller or buyer in the real estate transaction. Clients should know exactly how the agent plans to represent them. A failure to disclose that information can result in the agent passing on some liability to the client.
An agent who provides advice they are not qualified to give may inadvertently put the client at risk. Real estate has a variety of moving pieces from mortgage applications to inspections to appraisals. An inexperienced agent may recommend something they have limited knowledge about and cause harm to a part of the transaction.
There are times when the agent may put their own interests above the client’s interests. When this happens, the agent neglects their fiduciary duty to their client. Not all agents perform agency duties, but those that due should understand what their fiduciary duties are with their clients.
There are other ways that affect vicarious liability real estate transactions. A straightforward approach to the transaction and the client can help mitigate the risks involved.