liability F.S.B.O

DavidBrowne profile photo

I was talking with a R.A. he said selling by owner left me open and liabile for untested problems ( contaminated soil ect) He couldent give me one case in point. I was just wondering how often or has anyone heard of such a case that doesn't involve fraud or neglect.

He also explained that useing a broker ended that liability. He did not know what kind of insurance his boss held for this. I was wondering if anyone knows of this insurance and if it's worth the premium.
thaks ,Dave

Comments(6)

  • dsterlin3rd June, 2003

    Sounds like a load of B.S. Could be something special in your state, but I doubt it.

    Usually, you have to disclose what you know about. If you don't know about anything, then you can't disclose it.

    You can add a disclaimer/disclosure in the contract which should protect you from a fraud charge. Any contract you sign should be reviewed by an attorney who will get this wording right.

    The only job your R.A has is carrying offers between buyers and sellers. They don't protect you from anything... your attorney has that job!!

  • DavidBrowne5th June, 2003

    Thanks,
    that makes sence.

  • MightyM20th June, 2003

    The only thing I could think of is that the contracts used by most agents include an arbitation clause (at least in MI). This just protects both sides from expensive lawyer fees in the event of any future disputes.

  • NC_Yank20th June, 2003

    Hey David,

    The insurance they are probably talking about is call E&O (errors and omission) insurance. It can be very costly.
    I know this from my Home Inspection
    business. There are not that many companies that like to write these policies for obvious reasons.

    Jeff

  • DavidBrowne20th June, 2003

    yank,
    sounds like fraud, crimainal act insurance

    I think in this world we live in at some point we will all be sued.

    I think I will self insure for legal fee's by building stronger deals. In the meantime continue being honest and ethicail
    Thanks for all of your input.

  • DavidBrowne20th June, 2003

    yank,
    sounds like fraud, crimainal act insurance

    I think in this world we live in at some point we will all be sued.

    I think I will self insure for legal fee's by building stronger deals. In the meantime continue being honest and ethicail
    Thanks for all of your input.

Add Comment

Login To Comment