Types of Claims Filed for Real Estate Liability

Real estate liability insurance is important for any realtor. Even if the realtor is innocent of the claims being filed against him or her, the costs acquired from legal paperwork and representation can be costly. Because realtors work with a variety of clients, and help clients with very personal and weighty transactions, insurance is crucial. The types of claims that buyers often file include, failure to disclose material facts, failure to recommend a reasonable price, and discrimination.

Failure to Disclose Material Facts

A buyer may sue a real estate agent for failure to disclose material facts. Facts that fall under this category are such things as structural damage, anticipated zoning changes, leaky roofs, and termites.

Failure to Recommend a Reasonable Price

If a real estate agent does not disclose to a buyer that the price the buyer agrees to is unreasonable, the buyer can sue the real estate agent for withholding important information at the realtor’s benefit. Real estate agents should try to mitigate these possible situations by being up-to-date on what a particular house is worth, given its location, physical state, and other such considerations.


Discrimination occurs when a real estate agent will not represent a particular client due to race, nationality, sexual orientation, gender, or disability. If a realtor has a particular reason for denying to work with a buyer, the realtor should have specific reasoning that doesn’t fall into one of the above categories.

Real estate agents provide an important service to those looking for property. In order to avoid unnecessary and potentially damaging lawsuits, any realtor should make sure he or she is covered by real estate liability insurance.