Legal Hurdles to Prepare for While Working in Real Estate

You want a successful real estate career. To achieve your goal, you need to know how to deal with difficult clients, including those who may ask you to do illegal things. 

It pays to plan ahead for legal hurdles in real estate. That way, you can keep an eye out for legal issues in their early stages. And you can take appropriate steps to mitigate these issues without delay. 

Let’s look at three of the most common legal hurdles you may encounter when working in real estate. 

Misleading or Untrue Advertisements

You must verify that all information included in real estate property advertisements or listings is correct. As such, you must comply with state licensing laws and your real estate agency’s code of ethics. And you must remain up to date on laws regarding misrepresentation, too. 

Failure to Release Details About a Property’s Condition

It is your responsibility to disclose information about a property’s condition to prospective buyers. If you fail to provide details about unpermitted property renovations, easements, or environmental issues, you may be subject to legal penalties. It helps to use disclosure forms in real estate. These forms verify that you have notified a buyer about issues relating to a property’s condition. 

Housing Discrimination

The Fair Housing Act protects against housing discrimination based on race, religion, gender, and other criteria. Fair housing laws are also in place in 49 states and the District of Columbia. It pays to learn about fair housing regulations wherever you work as a real estate agent. You can pursue continuing education regarding fair housing laws and discrimination as well.  

There is no need to let legal business challenges hamper your real estate career. Here are three tips to help you plan ahead for legal hurdles in real estate. 

Ensure That Real Estate Contracts Are Signed and Valid

Use a contract for all real estate contracts. Get a signed contract that verifies all parties involved in a real estate pact understand its respective terms and conditions. Each contract should be written with terms that are clear. Avoid any abbreviations; instead, spell out all terms and phrases to minimize the risk that any contract terms can be misconstrued. Also, include an expiration date, since real estate contracts are typically time sensitive. 

Invest in legal software, so you can track all aspects of real estate transactions. This software simplifies real estate case administration and makes it easy to access relevant transaction details and documents at your convenience. Furthermore, update your legal software regularly to verify it aligns with the latest federal and state real estate regulations. 

Get Real Estate Agent Training and Certification

Enroll in a real estate agent training and certification program to learn various ethical and professional standards. This program can also provide you with tips and insights to help you manage the financial aspects of real estate. From here, you can maintain a real estate license and operate in accordance with myriad legal requirements. Plus, you can do what’s necessary to maximize your earnings as a licensed real estate agent. 

How to Deal with Difficult Real Estate Clients

You may do everything in your power to operate within the legal parameters of real estate. Despite your best efforts, however, you may be forced to deal with difficult clients who push you to break the law. 

Unfortunately, you cannot always avoid difficult clients in real estate. But, there are several things you can do to cope with these clients and avoid legal penalties. These include:

  • Educate Your Clients. Teach your clients about real estate and respond to their concerns and questions. This enables you to help your clients become informed property buyers and sellers.  
  • Establish Realistic Expectations. Explain legal rules and the ramifications of them to your clients. This helps set realistic expectations for real estate partnerships and ensures these clients know you are doing what it takes to comply with legal mandates. 
  • Keep the Lines of Communication Open. Discuss any legal concerns with your clients and listen to what they have to say. If you maintain open lines of communication, you can have open and honest discussions with these clients. And this can set the stay for mutually beneficial relationships. 
  • Remain Calm. Try to stay calm, cool, and collected, even if a client becomes aggravated, frustrated, angry, or upset. Resist the urge to get into an argument with a client. Rather, do what you can to maintain a positive outlook and ensure the client gets the support he or she needs. 

There is no telling when you will be forced to deal with a difficult real estate client. Regardless, there is no excuse for violating the law. 

Comply with real estate laws now and in the future. In doing so, you can provide all clients with the services and support they need and avoid legal ramifications. 

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