The laws surrounding the real estate industry are tricky, and so there are always legal issues springing up now and then. However, you can stay afloat all these by being up to date on local state and federal laws.
When you understand what you should and shouldn’t do, you will make a better decision regarding your investments. Here are some of the legal issues real estate agents are most likely to encounter.
- Misrepresentation
Many real estate brokers and agents are fond of this, without even knowing. Usually, this issue refers to misstating specifications or features of a property, a claim that is probably false. For instance, stating that the foundation or structure is in excellent condition, whereas it is not is a misrepresentation. You can avoid issues like this by avoiding predictions. Instead, you should use a seller disclosure form.
- Non-Disclosure
This issue is different from misrepresentation, but rather the failure to disclose information. When a real estate agent fails to disclose a property’s condition, he has defaulted in this law. This type of legal issue might include unpermitted renovations, environmental concerns, easements, etc. By using the disclosure forms, you can avoid situations like this.
- Discrimination
Numerous housing laws protect classes of people from different levels or spheres. The codes might not be the same in every state; the judgment emerging from such a case can be expensive. Discrimination can occur when you make listing statements that are inappropriate, like “This house is perfect for black couples.”
Since laws are always changing, it is paramount you stay up to date to these housing and discrimination laws. Possibly, you can pursue an education toward such a field to know more. As a real estate agent or broker or investor, such a piece of knowledge will always come in handy.
- Environmental Hazards
When you fail to address some environmental issues in your property like lead paint, contaminated water, or asbestos, someone can sue you. You must know how to solve problems like this in your property before leasing or selling them off. It will help ensure there is no loss of life or property.
- Misleading Publication
Every internet listing or newspaper advert must be factual and not misleading. You cannot mislead a potential buyer to a house he or she has no intention of purchasing. Every real estate agent or broker abide by codes of ethics, which help to make sure there is no issue whatsoever.
Conclusion
By knowing most of these legal issues common in court today, you will do your best to avoid them. With a competent and reliable real estate lawyers, your chances of beating such issues widen. Above all, you should strive to ensure you don’t make any mistake or go against the codes of ethics.