Real estate vendors and purchasers have high expectations of
their realtors – and they don’t often hesitate to
pursue legal action against their realtor when something unexpected
happens. And while realtors must have errors and omissions
insurance that covers many of these claims, more claims means
higher premiums, so both realtors and their insurers have a stake
in managing risk of litigation against realtors.
Obtaining and communicating information is one of the
realtor’s key objectives because it allows the realtor to
protect her client’s interests. But while there are many
sources of litigation between vendors or purchasers and their
realtors, claims against realtors by their clients generally arise
from a gap in that information: a vendor or purchaser alleges that
the realtor failed to communicate known information, to ascertain
information, to make further recommendations or warnings based on
information or communicated false information. The legal basis
