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Every business faces risk. Some, like a sudden economic downturn, are outside your control. Many other risks are entirely avoidable.
As a real estate professional, risk management includes a wide variety of concerns. Here are just a few ways agents can get into trouble:
- Giving advice outside your area of expertise
- Overlooking mandatory disclosures
- Failing to protect clients’ interests
- Offering opinions instead of material facts
- Accepting unearned gifts
- Including or omitting certain information in your ads
“I didn’t know”
is never an adequate excuse.
For U.S. agents, various state and national laws, as well as the REALTOR® Code the Ethics, speak to each of these offenses. The consequences of violations are substantial, including damaged reputations, fines, legal actions, or even, in extreme cases, imprisonment.
“I didn’t know,” is never an adequate excuse.
CIPS designees dealing in international transactions face additional risk management considerations.
Regardless of how your transaction crosses borders—whether you’re helping an international client with a domestic transaction or helping a domestic client in an international transaction—your due diligence checklist must include an expanded set of factors.
This issue of Global Perspectives examines several areas of concern, including reminders of topics covered in the CIPS designation coursework as well as updates to pertinent regulations.
