Exploring Claim Scenarios Faced by Real Estate Agents

Posted on: January 22, 2016 by Newmark Insurance

As we live in an increasingly litigious society, it is imperative to protect your real estate firm from lawsuits. While no one is immune to these claims, educating your staff on the most frequent claims can help to reduce liability. With that said, it is advised that real estate professionals carry Real Estate Liability Insurance to mitigate financial and legal responsibility as a result of a claim.


As fraud contains an element of intent, the plaintiff must prove to the courts that the real estate agent purposefully sold them a house under conditions that were known to cause them harm. According to Risceo, the “intentional act” complained of may be an affirmative statement by the real estate agent, or it could be the purposeful withholding of a material fact about which the real estate agent has knowledge.

Breach of Contract

If the real estate agent fails to perform all of the duties specified in the contract, a plaintiff might bring a lawsuit against him or her.


Law Dictionary defines negligence as a cause of action alleging the failure to exercise due care toward others which a reasonable or prudent person would do in the circumstances. These differ from fraudulent acts as they are not deemed intentional.

Misrepresenting Condition of Property

Failing to disclose information or misrepresenting a property can lead to lawsuits against real estate agents. This could include square footage discrepancies, potential income to be earned from renting, features, etc.

At NewMark Insurance Services, we specialize in protecting real estate agents and brokers against alleged claims. Our specialty coverage is specifically designed to cater to your needs. For more information about our products, contact us today at (855) 777-6549.

Posted in: blog Real Estate Liability