News Brief

Gregg Kahn Advises Real Estate Professionals to Document Conversations with Clients in Preparation for Potential Defense in Court

November 4, 2013

Gregg Kahn (Partner-New Jersey) weighed in on an article entitled, “Real Estate Errors and Omissions Risks Increase as Agents Expand Services” that appeared in Business Insurance on November 4, 2013. In the article, the reporter asserted that new realities in the realtor marketplace – coupled with sustained improvement in housing prices and sales volume – likely will continue to drive errors and omissions claims against real estate professionals.

Gregg cautioned that the potential for increased professional liability lawsuits against brokerages and/or their agents – not to mention E&O insurance disputes that may arise thereafter – should compel real estate professionals to put more care into their documentation of agreements and representations made to their clients. “If I were going to give any practical advice to real estate professionals, it would be to document all of your conversations with your clients,” he said. “When you see the demand letters, and you see the time and expense brokers and agents have to go through in defending a claim, it makes it much easier to defend in front of a judge or a jury when the agent has documented their communications.”

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